Legalized Canadian pot sparks investor frenzy

Canada became the second country in the world after  – and the first G7 nation — to implement legislation to legalize marijuana and sparking an investor rush. after the Senate passed a “historic” bill on Tuesday with a vote of 52-29.

On Wednesday, June 20. Canadian Prime Minister Justin Trudeau confirmed that the country ’s new marijuana rules would be in place in October reports Global News.

Bill C-45, known as the Cannabis Act, stems from a Trudeau campaign pledge to keep marijuana away from underage users and reduce related crime.

The act to legalize the recreational use of weed was first introduced on April 13, 2017, and was passed by the House of Commons in November.

Uruguay was the first country to legalize marijuana’s production, sale, and consumption in December 2013.

Although the Canadian government had initially stated its intent to implement by July 2018, provinces and territories, who will be responsible for drafting their own rules for marijuana sales, have advised that they would need eight to 12 weeks after the Senate approval to transition to the new framework says Global News.

On Twitter, Trudeau praised the bill and focused on Canada’s youth.

It’s been too easy for our kids to get marijuana – and for criminals to reap the profits. Today, we change that. Our plan to legalize & regulate marijuana just passed the Senate. #PromiseKept

Justice minister, Jody Wilson-Raybould, said “This is a historic milestone for progressive policy in Canada,” she tweeted. “This legislation will help protect our youth from the risks of cannabis while keeping profits out of the hands of criminals and organized crime.”

Homegrown
Once the bill is formally approved, adults will be able to carry and share up to 30 grams of legal marijuana in public. They also will be allowed to cultivate up to four plants in their households and prepare products such as edibles for personal use.

However, stringent rules will still govern the purchase and use of marijuana.

Consumers are expected to purchase marijuana from retailers regulated by provinces, territories or — when neither of those options is available — federally licensed producers. Marijuana will also not be sold in the same location as alcohol or tobacco.

The government has also implemented changes to their impaired driving laws, to address repercussions for driving under the influence of cannabis.

The bill set a floor on the minimum age of the consumer at 18 years and makes the production, distribution, or sale of cannabis products an offense for minors.

Market Boom
C-45 is also expected to spark a billion-dollar industry, given total spending on marijuana could surge as high as 58%, especially as users are expected to be willing to pay a premium for legal access to the drug.

In the United States, BDS Analytics estimated that the pot industry took in nearly $9 billion in sales in 2017. The revenue from the sales is equivalent to the entire snack bar industry.

As a result, the attempts to legalize cannabis for recreational use have caused Canadian marijuana companies like Canopy Growth Corp., Aphria Inc., and Aurora Cannabis Inc. to become the center of investor frenzy.

As provinces decide local rules of implementation, marijuana availability will vary across the country. In Alberta, recreational weed will be widely available at more than 200 private retailers. On the opposite end of the spectrum, marijuana availability will only be provided in 40 state-run shops in Ontario.