Canadian CANNAINVESTOR Magazine October 2017 - Page 192

Comparing New Brunswick’s $100 million deals with Canopy and Organigram using a similar distribution and sales model to Ontario and Alberta’s potential frameworks, a reasonable estimate can be made on what could be on the table for other potential deals across the country. Alberta’s market for cannabis use is projected to be almost double that of

New Brunswick, although consumption at 38% higher (Alberta 77 metric tonnes, New Brunswick 56 metric tonnes per year). Aurora Cannabis (TSX:ACB; OTC:ACBFF) is one company based in Alberta, along with Sundial Growers and Acreage Pharms. Ontario is almost six times the market and 5.5 times consumption! Simple math would peg a similar deal in Alberta to be $140-200 million retail value and Ontario a whopping $500-600 million! That is pretty impressive, and present fairly lucrative opportunities for LPs in these provinces, if a similar approach to New Brunswick is taken. Of course, Ontario leads the way currently with 33 licensed producers, while Alberta only has three. But the sheer size of the New Brunswick deal (9 million grams per year) means that only LPs with sizable supply capacity would be viable candidates. That is unless a consortium is created, especially with 33 LPs in Ontario, hypothetically speaking.

Projected Annual Cannabis Users by Region (thousands)