Canadian CANNAINVESTOR Magazine August / September 2017 - Page 222

RECENT NEWS

Update on TMX Group of Companies and Listed Companies

with USA Operations

CURRENT NEWS AND FEDERAL, PRONCIAL/TERRITORIAL,

MUNICPAL LAWS AND REGULATIONS

Canada's Elite Athletes are Smoking, Eating and Investing in Pot

Marijuana Industry May Bring Jobs to Small Towns

Across Canada – Smoking Laws Need to be Updated

Canadian Index News

Canada Leads the World in Demand for Legal Cannabis

This is a particularly interesting read because it shows annualized demand for medical marijuana in Canada was 67.3 metric tonnes as at May 2017. We also know that new patient growth has been tracking at approximately 10% per month and there is little to suggest that the new patient growth rate should not deviate materially from this. Projecting that out to July 2018 when recreational is legalized suggests medical demand could exceed 255 metric tonnes per year. With some analysts predicting all LPs including current expansion announcements may be able to supply 500 metic tonnes annualized at that same time, one can see why supply shortages are

predicted as the gap between medical demand and total supply is less than the demand for medical marijuana. The most recent relevant projection expects total demand at 655 metric tonnes suggesting a shortfall of at least 155 metric tonnes (source). Even if the demand and supply forecasts are off by as much as 10% each there is still a shortage.

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