CANNAINVESTOR Magazine March / April 2017 - Page 93

The fast growing legal industry could expand at an even more rapid pace if Trump or Congress acted. Cannabis remains an illegal substance under federal law in the United States. This hampers the ability of state-licensed cannabis businesses to optimize their growth rate. It also limits the ability for American growers to export cannabis and results in a challenge in conducting cannabis medical research in the United States.

As the U.S. Sits on the Sidelines, Canada and Soon Israel Will Dominate the Export Market for Cannabis

The establishment of an innovative American cannabis export industry could easily add hundreds of thousands of new good-paying jobs to the U.S. economy. Obviously, there is no possibility of this occurring unless the president or congress decide to change the status of cannabis from its current classification as a Schedule I substance under the Controlled Substances Act.

U.S. cannabis producers are forced to sit on the sidelines and watch as Canadian cannabis cultivators go global. Canada’s cultivators are the first legal exporters of cannabis, and will likely soon be joined by the Israelis.

The Canadian licensed producer, Tilray, recently signed an agreement to export cannabis to Alef Biotechnology SpA, a company licensed by the Chilean government to import cannabis.

Another Canadian licensed producer, Canopy Growth Corp. (TSE: WEED) founded a Brazilian subsidiary with a local partner to import cannabis from Canada. Canopy Growth’s subsidiary, Tweed Inc., is also exporting cannabis to Germany through a local partner, MedCan GmfBH Pharma and Nutraceuticals.