Canadian CANNAINVESTOR Magazine May 2017 - Page 136

Source: CBC News, “How high will the price of legal pot be?”

For illustrative purposes, a patient that is prescribed two grams a day is consuming 360 grams of dry bud over this 180 day average wait period, from the approval by Health Canada to the successful cultivation of home grown plants, at average cost of $9.12 per gram, or approximately $3,200 for a six-month supply. So, while 4,480 registered patients allowed to grow their own cannabis seems like a small measure, just these patients alone that required to purchase their seeds through a licensed producer could potentially lead to almost $15 million in revenue over this six-month period.

180 day wait period x 2 grams per day x $9.12/g x 4,480 individual seed sales = $14,708,736 incremental revenue

That’s a fairly decent chunk of revenue and that doesn’t even include the revenue earned from the sale of seeds!