Canopy Growth Corp (TSX:WEED) stock rose 1.69% near the top of the noon hour on September 15. The cannabis producer announced the same day that it had come to a deal with the province of New Brunswick to supply millions of grams for the fledgling recreational market set to open in the summer of 2018. As of this writing the province is set to make an announcement this afternoon concerning the structure of recreational cannabis sales in the province.
Ontario recently unveiled its plan for the roll out in July of 2018. Cannabis will be sold through government stores overseen by the Liquor Control Board of Ontario. They will not, as thought by some, be sold through LCBO outlets but instead through specifically constructed stores with a unionized workforce. Although it has not been revealed it is expected that other provinces will follow through with a similar route.
Canopy Growth Corp has increased 11.9% in 2017 and 159% year over year. Cannabis stocks have been rocked with some degree of volatility since a late 2016 surge. Producers are concerned about the ability to meet the early demand that legalized recreational cannabis is expected to bring. There will likely be a period of 2-3 years before production is able to catch up.
In any case, marijuana producers will be exceedingly busy and the industry is expected to quickly service a multibillion dollar market as things get underway. Canopy and other big producers should be on your radar.
