Canadian Marijuana companies are reaping big from the already legalized therapeutic weed business.
According to Alberta from Aurora Cannabis Inc, which is the largest medical marijuana producing organization in Aurora, the company experienced huge profits in 2017 and even more, benefits are expected after the much-awaited legalization of recreational marijuana. By November last year, the company made a total of $3.1 million in Marijuana revenues after selling 354,000 grams. This is a significant increase given that at the same time in 2016, they had only sold about 200000 grams.Furthermore, towards the end of 2017 Aurora’s cash, marketable securities, and liquid assets had gone beyond $500 million.
Allowing recreational marijuana in Canada is set to have the following results:
Increase More Revenue
- Medical Marijuana has been one of the major sources of revenues for Canada and the government is expected to authorize recreational weed in July this year. In accordance with data from Health’s Canada, the sales of medical marijuana by legal producers grew to over 5,830 kilograms in June 2017 from 4,037 kilograms in June 2016.The sale of Marijuana oil also experienced a 278.2% increase at around the same period. The same data from Health’s Canada also show; that Medical Marijuana users spend 60% than recreational users. Several other companies have accepted this finding and noted that selling for medical reasons is worth more. With the upcoming legalization of recreational weed, a boost in the market is expected also an increase in government revenue is guaranteed.
Increase in Medical Prescription
- The number of Medical Marijuana Doctors is increasing just as the number of sales and cultivation goes up. Analysts say that after the legalization of recreational Cannabis by the Canadian government, the level of medical Marijuana prescription will also rise.
Increase in Investment
- Legalization of Marijuana in Canada has and is still attracting more new investment expansions in the country. For example, a British Columbia-based True Leaf Medicine International Ltd has expressed interest in acquiring about 40 acres of land, to set up a 25,000 square-foot hydroponic medicinal Marijuana production facility.
- Napanee, Ont.-based ABcann Global Corp has already been provided with Marijuana oil production license from Health Canada. An extra authorization to sell is expected at the beginning of 2018.In December 2017, Up Cannabis Inc, a legal marijuana supply company entered into 15 months supply agreement with Saskatoon-based CanniMed Therapeutics Inc. This agreement is set to increase the supply of Marijuana by up to 1,500 kilograms once the supply is approved by Health’s Canada.
- Medical marijuana experts such as Ivan Ross Vrána, the vice-president of public affairs at Hill+Knowlton Strategies, predict that the investment in research by companies will trigger more growth in the medical marijuana industry.
Source: Medical Marijuana Blog
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