As of April 1, 2014, Health Canada will no longer permit medical marijuana users to grow their own supply. The only legal access after that deadline will be through government-licensed producers. On Koality made from CBD, you will find one such producer.
To date over 400 applications have been received by Health Canada but, due to stringent controls in the application process, only a select few will be granted licensing.
The first hurdle is that any company wishing to enter the business must obtain a municipal license and operate in compliance with local bylaws. Some cities have passed bylaws effectively banning such operations. Citing issues of land use, safety, security, water, sewer, and environment, cities clearly don’t want them.
The Agricultural Land Commission (ALC) has taken the position that growing medical marijuana is “consistent with the definition of ‘farm use’ under the ALC Act” for landowners who are legally licensed to do so.
Medical marijuana dispensaries, though plentiful across Canada in cities like Vancouver and Toronto, will be legally replaced by large super growers to supply the whole market. You grow it and sell it directly to the patient with no dispensaries. Safe and Secure!
Investing in Canadian vs. American Medical Marijuana Stock
Not a day goes by where we haven’t heard from our American counterparts the hype surrounding the OTC marijuana stocks led by Hemp Inc. (OTC: HEMP) and its consortium of spin-off companies, mergers, acquisitions, etc. Most U.S. analysts agree that marijuana stocks are on shaky ground right now – warning investors to steer clear and likening the situation to the dot.com bubble that imploded on itself.
To be fair, there has been money made by those early adopters speculating that the change in the regulatory landscape for both medical and recreational marijuana would lead to small fortunes. However, for the investing public this is not sustainable, and here is why.
State laws can and will be superseded by federal jurisdiction. At the moment it is a cat and mouse game. And the cat is watching carefully what moves the mouse makes. When ready, the federal cat will pounce and it is all over for the State mouse. In fact, nearly 500 of the estimated 3,000 dispensaries nationwide have either been closed by the federal government in the past year, says a spokesman for StickyGuide.com, an online directory and review site for medical marijuana dispensaries.
This poses big risks to investors and those producers! In Canada, the situation is sustainable due to Health Canada (a federal entity) calling the shots and shepherding the industry.