Cannabis is legal across Canada from today
Health & Biotech
Canada’s legalisation of recreational cannabis overnight has so far not had much of an impact on Aussie pot stocks.
Cannabis suppliers — and investors — are salivating over what could be a market of $C7.2 billion in total sales in 2019, according to Deloitte.
On Wednesday Canada became the first G7 country – and second country in the world after Uruguay – to legalise marijuana for all adults. Each Canadian province has set its own age limit and rules on how to sell the drug – with some opting for storefronts and others pushing business online.
But while a handful of companies including Elixinol Global (ASX:EXL) and MGC Pharma (ASX:MXC) saw their share prices bounce on Tuesday, the tone was subdued on the ASX in the lead up to Canada’s big day.
MMJ (ASX:MMJ), THC Global (ASX:THC), YPB (ASX:YPB) and RotoGro (ASX:RGI) all have exposure to the Canadian recreational market, with Creso Pharma (ASX:CPH) saying they have plans to get in.
The latter two managed to move up a little, with Creso saying it “welcomed” the Canadian move while Roots had no news.
— Justin Trudeau (@JustinTrudeau) October 17, 2018
The only big mover was Stemcell United (ASX:SCU) which rose 18 per cent on no news. They are focused on selling traditional medicine into the Asian and particularly Chinese markets.