Uh-Oh! This Is the News Canadian Pot Stock Owners Have Feared

Discussion in 'Canadian Patients' started by gb123, Feb 8, 2018.


    gb123 Well-Known Member

    The marijuana industry simply can't be slowed of late. Even with a restrictive federal government in the U.S., North American sales of legal weed -- medical and adult use -- are expected to grow by 26% per year, according to cannabis research firm ArcView.

    And it's not just pot sales that are charging higher. According to four polls since April 2017, Americans really want to see cannabis legalized. Though it varies by poll, at least three out of five respondents favor the idea of recreational legalization, with more than nine out of 10 in favor of legal medicinal marijuana, says the independent Quinnipiac University.

    Image source: Getty Images.

    Canada is becoming the blueprint for cannabis reform
    Yet in spite of this favorability, it's Canada that looks to take the lead on marijuana reform. In April 2017, Prime Minister Justin Trudeau introduced legislation designed to legalize recreational weed for adult consumption by July 2018. If Canada moves forward with the measure, it would become the first developed country in the world to have done so, and only the second country in the world behind Uruguay. Green-lighting adult-use weed could generate an estimated $5 billion in additional revenue for the pot industry in Canada.

    Many of the signs have been pointing toward legalization. For instance, Canada's parliament is controlled by its more progressive party, meaning conservative concerns are predominantly being muted.

    What's more, officials in December outlined a two-year tax-sharing agreementbetween the federal government and Canada's provinces. The deal will allow provinces to net 75% of tax revenue, with the federal government getting the remainder. This tax-sharing agreement is designed to provide the funding provinces will need to regulate adult-use weed on the front lines. It's also worth noting that the per-gram tax on recreational weed in Canada will be lower than the current tax on alcohol, which should allow domestically grown pot to be price-competitive with black-market cannabis.

    Image source: Getty Images.


    This is not what Canadian marijuana stock investors wanted to hear
    However, truth be told, risks still exist for Canada's recreational-pot law. In particular, provincial officials have warned the federal government on numerous occasions that the expedited timeline for approval of July 2018 wasn't a realistic date for getting law enforcement trained, and allowing growers and distributors to get pot into retail locations. Even with a tax-sharing agreement in place, provinces have cautioned that they don't have the manpower or funding to get the adult-use industry off the ground on the current timeline.

    Until recently, these concerns have just been white noise. But according to recent comments from Canadian Health Minister Ginette Petitpas Taylor, they could throw a serious monkey wrench into investors' expectations.

    According to a Reuters report on Tuesday, Feb. 6, Taylor said that recreational marijuana in Canada would go on sale a few months after the bill becomes law in July. "They [Canada's provinces] told us they need eight to 12 weeks following (adoption of the law) for preparatory activities to occur, such as preparatory movement of product from licensed producers to distribution and retail outlets," said Taylor.

    Even though Taylor's comments would suggest that the Canadian bill is progressing through parliament as planned, the timeline for recreational sales to begin has been pushed back a good two to three months. It's tough to say, but that could mean tens of millions of dollars, if not over $100 million, in expected sales that are now being pushed back.

    It could also change the dynamics of the Canadian pot industry. Aphria, for instance, could be generating 230,000 kilograms of annual cannabis production by 2019. It's not set to complete its flagship project until late January 2019, putting it at risk of falling behind the likes of Canopy Growth and Aurora Cannabis, which are expected to complete their capacity expansions a few months earlier. This delay may remove some of the market advantage Canopy and Aurora had over Aphria, as well as reduce sales expectations for growers across the board.

    It's certainly not what Canadian pot stock investors wanted to hear.
    TheRealDman likes this.

    gb123 Well-Known Member

    no sales ..
    no sales
    after all

    TheRealDman Well-Known Member

    Like I said...the law will pass before July 1st!
    VIANARCHRIS and gb123 like this.

    WHATFG Well-Known Member

    I don't get what police need to be trained for that they shouldn't already be trained for given cannabis will now be legal....?

    gb123 Well-Known Member

    Taylor said that recreational marijuana in Canada would go on sale a few months

    the bill becomes law in July.
    not july 1st ;)
    VIANARCHRIS likes this.

    gb123 Well-Known Member

    Its business @WHATFG They have more to charge people with..so there's LOTS to LEARN the foolish ones,.even then they'll get it wrong more than half the time but No issue THAT BUSINESS!

    VIANARCHRIS Well-Known Member

    Who cares if the LP's have to sit on their garbage a few more months? Nobody has a problem buying weed now, and I don't see that changing.
    TheRealDman and CalyxCrusher like this.

    CalyxCrusher Well-Known Member

    The bill will pass. But the likely hood of sales are very low as theyve stated it will be 8-12 weeks for the provinces to get things in order to do so. So the bill may pass but sales will have to wait. Kinda like the NJ med program. Approved WELL before storefronts were put in place for sales. Forcing people to wait

    gb123 Well-Known Member

    as they have said AFTER july 1st :lol: yerp

    VIANARCHRIS Well-Known Member

    Most laws relate to the business end of things, ie.- growing and selling without a license, or selling to kids. The regular guy has no worries beyond the driving bullshit, whatever that ends up looking like.

    TheRealDman Well-Known Member

    I’m not interested when sales take place, it’s when the actual law takes effect...right gb! ;)
    OLD MOTHER SATIVA likes this.

    gb123 Well-Known Member

    and the law won't change before july 1st but sometime ...........after that....
    Right you are Dman! ;)

    cannadan Well-Known Member

    and by waiting for 2-3 months after july 1st will put everyone into the fall...and for many ...they will be too afraid that they still will get busted...if they start early.....starting to seem like it has been planned that way...to avoid many from doing their own this year....
    call it a temp reprieve for LP's to get some business out of the gate....
    If I wasn't med....I would rather install some lights and pay the hydro....before buying LP poison
    zoic, CalyxCrusher, gb123 and 3 others like this.

    VIANARCHRIS Well-Known Member

    WHATFG and gb123 like this.
    The Hippy

    The Hippy Well-Known Member

    My Beloved " People's Plant " will bleed them to death. Gonna be funny to watch it all collapse.
    They fucked us over for the last 60 years...now it's our turn.....and I'm gonna love every minute of their deaths. These idiots are so gonna deserve what they are going to get.
    Anyone LP non cannabis people who looks at cannabis as a commodity will find out the hard way...it is a commodity.......just not for them.
    cannadan, gb123 and VIANARCHRIS like this.

    gb123 Well-Known Member

    I said a few years ago its going to be the worlds biggest commodity once it gets up t speed with all the things its good for...

    ya shoulda seen the face of the guy at Hockey when I told him theres no market...
    He's like sure there is.
    OK I said..are you going to buy it?
    He's like no...not likely

    so I said...do you think Im going to buy it? No one is buying it now... lol
    Ya shoulda seen the shock on his face...
    cannadan, Farmer.J and The Hippy like this.

    MrStickyScissors Well-Known Member

    8 to 12 weeks is nothing. If your investing and cant wait 12 weeks you shouldnt be investing.

    VIANARCHRIS Well-Known Member

    The 8 - 12 weeks doesn't start until AFTER legalization becomes law. Some of these companies and their investors have been trying to stay afloat for up to 15 years waiting for legalization.
    You shouldn't be investing in ANY of these corrupt companies. Why would you support a business operated by the pig that was responsible for busting you for a joint?
    zoic and gb123 like this.

    gb123 Well-Known Member

    could care if it happened in 12 years :lol: which it will before its actually legal? lol

    classsic shit...

    bigmanc Well-Known Member

    The part about licenses being pushed out 12 weeks after law passes is contradicted by what Ginette Taylor said. Licenses are pushing out in the spring to get production up for legalization. The 12 weeks after law passed is for product to actually be for legal sale...we don’t even know who’s packaging yet sheeeesh
    VIANARCHRIS likes this.

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