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There are many answers to that question and not all the answers will resonate with every investor.
- Full tax benefits and treatment under all laws in Canada.
- Full banking rights.
- Listed on major stock exchanges including the TSX and “international designation” on NASDAQ.
- Included (or eligible) in Mutual Funds and ETFs such as HMMJ.
- Legal (now or soon) status of cannabis
- Partnering and expanding internationally including Germany, Israel, South Africa, Australia, Uruguay, etc.
There are, of course, risks to investing in Canadian companies:
- Adverse changes in foreign exchange.
- Tax implications are possible.
- Unpredictability of current USA Federal Administration…
Last autumn, an article I wrote included a timeline spanning from a few millennia BC to modern times and into the future. “Day Zero” was clearly marked and day zero is different to every country. I would suggest Canada is at day zero with cannabis still illegal yet formal legislation in place to bring the end to prohibition. That is in direct contract to the USA environment where Day Zero is still in the future but can almost be seen on the horizon. Investing before or near day zero is a rare opportunity indeed for the typical Retail Investor. Investing in Canada brings an element of foreign exchange risk and the attitude of the current US Administration to fair and free trade comes into play. Recent projections of where the Canadian dollar will be in comparison to its American counterpart are mirror opposite. Here are two opposite but real recent examples: