Marijuana legalization has overcome its last hurdle and we’ll see legal pot sales in eight to 12 weeks as all that’s left is for the provinces to get ready for the sale and distribution of cannabis.
It was a few weeks ago that the Senate initially passed Bill C-45, but it came with dozens of changes, and those modifications needed to be approved by the House of Commons as well. And although the House didn’t agree to all of the changes, the Senate decided to agree to give in to the updated bill. Had the Senate fought on some issues then we could have seen the process stretch out even longer, and it would have made it even tougher with the House not in session after this week until September.
However, that’s no longer a concern as we’re off to the races and companies like Canopy Growth Corp (TSX:WEED)(NYSE:CGC) can start putting their plans into motion as recreational pot sales will result in huge increases in demand, and share prices could soar even higher.
The big question now is how close actual demand come in at versus projections, and whether there will be more demand than is expected, or if we see a problem of excess supply. There are many growers that will be vying for customers, and market share will be difficult to come by in a very competitive industry.
In the short term, there could be significant upside for cannabis stocks, but the long term remains more of a question mark.
