The Globe and Mail reports in its Saturday, Oct. 27, edition that
marijuana firms that operate in multiple United States have become the new darlings on Bay Street. The Globe's Christina Pellegrini and Andrew Willis write that at the same time, investors have been dumping Canadian weed stocks a week after the country legalized recreational cannabis. The Canadian market is seen to be saturated, with 132 licences handed out by Health Canada. Canadian weed firms are also facing heavy restrictions on advertising and branding, provincial distributors that disrupt the supply chain, and the inability to sell edibles and concentrates until 2019.
Even though cannabis is federally illegal in the U.S., there is much more leeway for operators in states that have eased restrictions. The big U.S. companies are already making money, whereas the Canadian firms are promising that one day they might be able to.
Curaleaf Holdings chief executive officer Joseph Lusardi says: "Investors are recognizing that the U.S. market has tremendous growth potential and there's more of an interest in the sector than there was half a year ago. Public perception of cannabis in the U.S. continues to get more favourable."
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