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A Good Bet: Investing In Canada’s Medical Cannabis Industry

Written by Julie Godard

Canadian medical cannabis investment is increasing, as the industry soars to new heights and awaits new cannabis regulations throughout the country

But it can be difficult to know where to invest when so many different companies are vying for the attention of investors. Canadian medical cannabis law and individual medical cannabis company knowledge can help an investors determine the difference between a good investment and a poor one.

The main players in medical cannabis are, of course, the medical cannabis producers or cultivators that grow the medical cannabis product and distribute it across the country to patients. This article focuses on the producers, the most established and safe investments in medical cannabis at the moment (Canada’s medical cannabis health program has been in place for 16 years).

Canada’s Medical Cannabis Laws

Before investing in the medical cannabis industry, it’s important to know as much as possible about how that industry works. Right now, so many investors are trying to get into the medical cannabis game that knowing where to start investing can be tricky.

Canada’s well-regulated, safe, and efficient medical cannabis system prevents most legal issues and disputes before they get started (current dispensary debacle excepted). The Canadian government’s website on the legalization and regulation of cannabis is an excellent resource for information on the legality of medical cannabis. Here are some highlights:

  • Recreational cannabis is still illegal in Canada, but expected to be legalized with new regulations by summer 2018
  • Medical or recreational cannabis cannot be sold in dispensaries and compassion clubs legally
  • Medical cannabis prescriptions must be submitted to a producer and will be mailed to the patient
  • Patients and doctors do not have to list any reason or ailment to obtain medical cannabis
  • Medical cannabis patients must fill out this document with their healthcare practitioners
  • Medical cannabis patients may possess up to 150 grams (6 grams per day or a 30-day supply) based on your healthcare practitioner’s recommendation
  • All medical cannabis must come from one of 52 licensed producers (you can find the list here)
  • Patients can cultivate their own medical cannabis

Investing in Canada’s Medical Cannabis Industry

There are a few factors in Canada’s medical cannabis industry that make it ripe for investment; firstly, patients do not need a specific disease or illness to obtain medical cannabis – only a healthcare practitioner’s recommendation on this document.

Secondly, Canada’s medical cannabis industry is well-controlled and established. Third, although home cultivation is allowed, it’s time-consuming and complicated – most patients prefer to obtain medical cannabis prescriptions from a licensed producer (and since dispensaries and compassion clubs are technically illegal, this is safest).

Finally, although recreational cannabis is on the path to legalization, it’s not there yet, and the current producers of legal medical cannabis will certainly have a leg up on newcomers as far as regulation compliance and resources. Now is the perfect time to invest in the Canadian medical cannabis industry, and the following producers are at the top of the heap:

Will Canada’s Medical Cannabis Stocks Go Up or Down?

As far as recent “tumbles” in Canadian medical cannabis stocks, Small Cap Power’s senior editor Sean Mason noted in June 2017 that uncertainty new cannabis regulations in the works probably caused them. The Canadian government is still deciding on recreational regulations and expects to legalize in 2018, but these decisions are unlikely to affect medical cannabis producers or companies.

Although Mason agrees that new industries like medical cannabis in Canada can be risky, he believes there is a considerable future there and that now may be a “good entry point.” Aurora Cannabis, Inc., has just acquired Pedanios (a successful German medical cannabis import company). In Germany, medical cannabis is handled just like any other medication, and is sold through pharmacies. Germany has full insurance cost-coverage for its medical cannabis patients, as well, and has a population of 80 million.

Canadian medical cannabis investors would do well to start with established producers such as those listed above, and The Motley Fool and Sean Mason recommend investing in Aphria and Aurora Cannabis, Inc.

Aurora Cannabis, Inc., has been acquiring cultivation property at a rapid clip, indicating that it is ready for the opportunities that may come its way in 2018 or beyond. Aurora Sky, an 800,000-square-foot cannabis production facility, is currently in the works and will generate 100,000 kilograms of cannabis annually while creating and supporting 200-300 jobs in an area the size of 16 football fields. When and if you’re ready, you can invest in any Canadian medical cannabis stocks you choose: Canopy Growth (TWMJF), MedReleaf (LEAF), Aphria (APHQF), Aurora Cannabis, Inc. (ACBFF) Cannimed Therapeutics (CMED), or Namaste Technologies (NXTTF).

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About the author

Julie Godard