Canadian CANNAINVESTOR Magazine May 2017 - Page 28

Horizons Medical Marijuana Life Sciences ETF

The Recreational Opportunity

In Canada, the likelihood of recreational marijuana legalization is much greater than it is in the United States, despite the fact that eight states have legalized recreational marijuana consumption.

When the federal government legalizes recreational marijuana usage in Canada, it would significantly increase the revenue opportunity for Canadian cannabis-related companies. The Canadian government has tabled marijuana legalization legislation until July 1, 2018, which means that as early as 2019, there could be a distribution mechanism and a process in place for legalized recreational marijuana usage in Canada.

GMP Capital thinks that it would likely take five or more years for Canadian producers to be able to fully meet demand capacity. If and when they are able to do so, the recreational marijuana market in Canada could be in excess of $5 billion by 2023. Another projection by PI Financial and the Marijuana International Corporation puts a projected target closer to $6 billion by the end of 2021.