The medical marijuana industry in the U.S. has taken off in the last few years. Most of the states in the U.S. have now legalized marijuana for medicinal purposes. Canada has also been looking to implement friendlier laws when it comes to medicinal marijuana.
According to a report in CBC News, investors in the U.S. are already taking an interest in Canada’s medical marijuana industry.
With the election of the new Liberal government in Canada, American investment is expected to increase.
CBC News adds in its report that Poseidon Asset Management, which is a San Francisco-based hedge fund focused on the cannabis space, is already considering increasing its investment in the Canadian medical marijuana sector following the election of the new government.
Morgan Paxhia, the hedge fund’s chief investor, told CBC News, that his fund has one core holding in Canada currently but it would love to expand that. One reason why U.S. investors are interested in Canada is because medical access to the marijuana is legal across the country.
And the election of Justin Trudeau could lead to even friendlier laws that would encourage further investments from investors looking to reduce their exposure to the U.S. medical marijuana sector.
The development augurs well for Aphria Inc. (TSX-Venture:APH), an Ontario-based company engaged in the business of producing, supplying and selling medical marijuana pursuant to the Marihuana for Medical Purposes Regulations. Under the regulation, Health Canada is responsible for the oversight of commercial medical marijuana growers such as Aphria.
This morning, Aphria announced its financial results for the quarter ended August 31, 2015. For the quarter, APH reported revenue of $950,740. The company’s gross profit for the quarter was C$678,555. APH reported a net loss of $476,825 for the quarter. On a per share basis, APH’s loss for the quarter was $0.01. The company’s revenue rose 90% on a sequential basis. In the same period of last year, APH did not generate any revenue. In the previous quarter, the company had a net loss of $0.01 per share.
Vic Neufeld, CEO at Aphria, said that the company experienced significant sales growth in the first fiscal quarter, supported by its growing patient base and as the company moves into 2016, it is continuing to see growth in patient registrations with more than 2,800 registered patients to date.
APH has seen a share price resurgence since the Liberal election win as the stock has moved up around 20% in the week alone with investors betting on future potential legalization in Canada.
