Canada’s position in the global market and the maturation of investors were topics in focus at the 2019 edition of the Lift & Co. (TSXV:LIFT) Cannabis Business Conference (LCBC) in Vancouver.

Thursday (January 9) marked the kickoff of this year’s expo, and as at previous shows the first day was reserved for the LCBC, with the doors open to experts and leaders within the industry.


The event began with a briefing and recap on the current state of the overall cannabis market from Nick Pateras, vice president of of strategy at Lift. He told the audience Lift projects that the current shortage of legal cannabis product will balance out in 2020.

 

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The executive also revealed that consumers are not fully attaching to existing brands from Canadian licensed producers (LPs). Pateras said a recent survey shows 64 percent of consumers named a strain rather than a brand or company when asked about legal products.

Read on below to find out more about the event and which conversations investors need to know about.

Investment panel highlights — TSXV maintains stance on companies with US assets

As part of a finance and investment panel later in the day, Brady Fletcher, managing director and head of the TSX Venture Exchange (TSXV), clarified that the exchange doesn’t plan to change its policy of blocking cannabis companies with assets in the US from listing.

“That regime that we are operating in, and the integrity that those international pools of capital trust us to maintain, does require that the businesses have a legal business in all jurisdictions that they operate in,” Fletcher told the audience.

He added that the exchange’s operators can’t change policy based on sentiment, and as it stands the federal illegality of cannabis in the US overrules what different states in the country have done.

This decision has caused these companies to flock to the Canadian Securities Exchange (CSE), a smaller listing house in Canada that has seen exponential growth thanks to the marijuana business.

Fletcher said cannabis listings represent nearly C$40 billion of the total TMX Group (TSX:X) exchanges, with 45 issuers listed.

Penny Green, president and CEO of The Yield Growth (CSE:BOSS), said one of the most immediate themes she has noticed within the cannabis space recently is how willing and excited American investors are for companies in Canada.

 

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When asked what type of investors, she said mostly retail investors looking for gains with companies at the venture stage.

The panelists agreed that cannabis investors are maturing and are beginning to ask more complex questions about their investments. They see financial statements in 2019 as crucial for the market.

What’s next for Canada, and what has been learned from a start to rocky legalization

Moderated by Rosy Mondin, CEO of Quadron Cannatech (CSE:QCC), one of the day’s panels evaluated how far the Canadian market has come and what is on the horizon for the players in the space.

Peter Aceto, CEO of CannTrust Holdings (TSX:TRST), indicated that he expects 2019 to bring an added level of legitimacy to the industry, and more acceptance of cannabis as an effective medicine, alongside any new innovations with the plant.

The new leader of CannTrust said that after multiple regular discussions with financial people, the common theme for 2019 is that investors will not settle for promises and instead will make sure they have steady investments.

“2019 is the year where people who are thinking about investing, or are investing, are going to be looking to see how these companies are executing on their promises, where the discipline and the trust related to what you say vs. what you do, delivering on financial results and responsible capital allocation, is going to be at a premium,” Aceto said.

Adam Greenblatt, lead of business development in BC with Canopy Growth (NYSE:CGC,TSX:WEED), said he expects a variety of new products to be introduced as real competition begins amongst LPs.

Brad Goble, director of regulated industries with Shopify (NASDAQ:SHOP), said Canada needs to be able to demonstrate to the world stage that the legal cannabis market will truly be able to disrupt illicit sales. Shopify offers online solutions for cannabis e-commerce.

The audience of cannabis enthusiasts was also treated to a panel featuring Joanne Garrah, director of licensing and security for the Cannabis Legalization and Regulation Branch of Health Canada.

 

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After a quick discussion between the panelists, the question-and-answer period was dominated by queries to Garrah. One question came from Dr. Shane Morris, senior vice president of product development and regulatory affairs at Aurora Cannabis (NYSE:ACB,TSX:ACB).

Garrah explained that Health Canada is attempting to scale up and respond as quickly as possible to all the roadblocks legalization has brought about.

The fight for leadership continues — Canada holds it together, but will it last?

Despite multiple calls for cheers and applause any time a panelist spoke on Canada’s leadership status in the global cannabis marketplace, Peter Guo, a partner and enterprise risk services leader for BC with accounting firm MNP LLP, challenged the audience to recognize that US market leaders are coming.

During a talk on the approach of 48North Cannabis (TSXV:NRTH), a second-generation marijuana brand firm seeking to provide products for women, Kristen Gauthier, chief marketing officer for the company, explained how in the cannabis business coming in second place isn’t the worst thing.

She added that extra time allows for players in similar positions to 48North to learn from growing pains and adapt to the existing market.

Don’t forget to follow us @INN_Cannabis for real-time news updates from the show floor at the Lift & Co. Expo in Vancouver.

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Yield Growth is a client of the Investing News Network. This article is not paid-for content.

 

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US cannabis received a boost this week with a policy move that may hint at future changes.

Meanwhile, Amazon (NASDQ:AMZN) threw its full support behind cannabis reform in the US by way of a public post confirming the company’s acceptance of the drug.

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  • Research findings originated from cannabinoid-based collaboration with leading epilepsy researcher, Dr. Peter Carlen, at UHN that is also supported by a Mitacs Accelerate program grant.
  • Avicanna’s proprietary formulation showed promising pre-clinical results in reducing seizures and will be developed through the company’s pharmaceutical development pipeline as an epilepsy drug candidate.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS/

Avicanna Inc. (” Avicanna ” or the ” Company “) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based pharmaceuticals is pleased to announce that it has filed a provisional patent application with the United States Patent and Trademark Office, entitled “Methods for Reducing or Eliminating Incidence of Seizures and Sudden Unexpected Death in Epilepsy”, on the use of a novel cannabinoid formulation (the “ Formulation Candidate ”).

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Cannabis legalization in Canada helped kickstart a financial revolution in the stock market with the launch of a diverse portfolio of marijuana firms.

With the boom of public cannabis businesses in full swing, are you thinking about investing in cannabis companies? If so, consider starting your journey here.

A wide spectrum of marijuana stocks have made their mark in the global industry thanks to the amount of money raised from investors and the attention the sector is getting from established industries.

 

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What’s to come is anyone’s guess, but it seems this new and burgeoning industry is still in its early days, with diverse nations beginning to move forward with plans for legalizing marijuana.

That means there’s likely still money to be made in cannabis stocks as the market builds and cannabis products expand in availability over the next few years.

There are many differing opinions about how much the global legal cannabis market will be worth in the years to come, with estimates including US$70.6 billion by 2028 and US$91.5 billion by that same year.

But one thing is almost certain: The market is set to grow as opinions surrounding the plant evolve over time and as platforms crop up to supply different consumption preferences. And all of that will mean more cannabis investment opportunities with both existing companies and future entries to the market.

For now, let’s take a look at where you can invest your money at this point in time.

How to invest in cannabis: Canadian cannabis stocks

First thing’s first: Canada. This is the obvious place to start as marijuana is legal at the federal level and Canadian cannabis stocks are less likely than their US counterparts to suffer from political volatility.

That said, due to the uncertainty of investing in the US marijuana space, where the drug is not legal at the federal level, Canadian firms have been forced to make choices about how they operate. For example, Canada’s senior exchanges do not allow companies with American cannabis assets to list.

While the Canadian cannabis space continues to face challenges, investors are eagerly watching as companies move into the edibles and beverages markets and develop new products.

For lists of Canadian marijuana stocks to consider, click here.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
Experts Weigh In On Our Exclusive FREE Report. Can You Afford To Miss Out?
 

How to invest in cannabis: US cannabis stocks

Although some US states have legalized cannabis, American cannabis stocks may be riskier than those in Canada due to federal restrictions on the sale and cultivation of cannabis.

However, as the saying goes, the greater the risk, the greater the possible reward. The US market could grow up to US$43 billion by 2025, and that’s not even including the size of the market if nationwide legalization happens. It’s easy to see that US cannabis stocks could inherit a huge chunk of the pie if federal law finally legalizes the commodity.

All in all, picking the right US cannabis stocks could mean massive gains if the plant is ultimately legalized federally. It’s worthwhile for investors to do their research and to be aware of the risks and potential benefits involved in investing in the space.

For a list of US cannabis stocks to consider, click here.

How to invest in cannabis: A side note

Many companies in the cannabis space have begun to veer in one direction or another.

For example, some of the largest marijuana producers have moved towards deals with beverage or pharmaceutical companies for the production of novel new products. Others in the space continue to pursue innovation in the recreational market.

The beverage side in particular has seen interest from companies, with cannabis firms partnering with brew businesses. One example is Canopy Growth (NYSE:CGC,TSX:WEED), which has teamed up with Constellation Brands (NYSE:STZ), a leading producer in the alcoholic beverage industry.

It’s important to be aware that each niche has its own possibilities and challenges. For instance, while many market participants are convinced of the promise in beverages, these drinks have been hampered by strict marketing rules, among other factors.

Another aspect to consider is whether to pursue big caps or small caps. That has a lot to do with personal comfort. While big caps are often regarded as more stable than small caps, in the cannabis industry there’s been considerable volatility.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
Experts Weigh In On Our Exclusive FREE Report. Can You Afford To Miss Out?
 

How to invest in cannabis: Cannabis ETFs

If you really know your cannabis companies, then you could enjoy larger gains by simply investing in those specific firms. However, if you aren’t overly familiar with the cannabis space or you are new to it, it could be a good idea to check out the cannabis exchange-traded funds (ETFs) available.

A cannabis ETF gives you exposure to several different cannabis stocks and takes the guesswork out of cherry picking which stock to bet on. One issue with ETFs is that like any other group dynamic, if one stock drops off it brings the whole fund down proportionally with it. Of course, the opposite is also true.

Recently investors have seen the addition of new ETFs offering exposure to the US market, including firms with entries into the hemp space, thanks to the sales of CBD products.

For a list of cannabis ETFs to consider, click here.

How to invest in cannabis: Final thoughts

No matter which way you slice it — or grind it, in this case — the cannabis market is an exciting business to invest in right now. Whether you invest in cannabis ETFs or Canadian or US marijuana stocks, or if you’re still waiting on the sidelines for more maturity from the types of cannabis companies trading, this industry is one to watch, and one that looks like it’ll keep climbing in the future.

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TransCanna (CSE: TCAN) (FSE: TH8) (“the Company”) is pleased to announce that plants are going into its first crop management site today – a greenhouse in Wesley, California.

The Company partnered with the 3rd generation cannabis farmers at 365 CannaFarms to consult on the construction of the state-of-the-art, computer-controlled greenhouse and to help manage the crop for the client, Central Valley Growers. The entire crop is comprised of premium genetic strains from Lyfted Farms, TransCanna‘s wholly-owned subsidiary.

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Acquisition strengthens clinic portfolio for mental health treatment using psychedelic-assisted therapies

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