The “Canadian” Cannabis Market No One Is Talking About

In the next two weeks, Canadian lawmakers will unveil legislation to legalize marijuana for recreational purposes by summer 2018.

As the story of the Canadian recreational market captures the headlines, major news outlets (and most investors) will likely miss out on a more urgent market delivering faster gains.

Today, we’ll give you a front-row seat to the “Canadian” cannabis market no one is talking about: the global medical cannabis market.

2016 was a landmark year in the legalization of medical cannabis not just in the U.S., but also around the world.

Germany and Australia, among others, saw the creation of legal medical cannabis markets.

While their demand for medical cannabis is immediate, these countries lack the domestic production necessary to satisfy demand.

In a scramble to satisfy demand, economies with newly regulated medical cannabis markets are opening their doors to imports and foreign capital.

And that’s where Canadian companies come in…

Just this week, one of the first Australian companies licensed to do business in the country announced the sale of a portion of their company to a Canadian partner.

Today, countries like with newly regulated medical cannabis markets look to two countries for imports: the Netherlands and Canada.

While the Netherlands enjoys a geographical advantage over Canada to enter European markets, they don’t have the supply to satisfy the large demand.

That’s why Germany, Croatia, New Zealand, Brazil, Chile, and a growing list of countries are turning to Canadian companies for supply.

Thanks to the surge in global demand, Canadian medical cannabis companies are set to soar to new heights.

The global medical cannabis market is too big to ignore.

Israel and Colombia have announced plans to become medical cannabis exporters.

But Israeli companies don’t expect to begin exporting for another two years. And Colombia is struggling to establish the regulatory framework to allow their companies to operate.

So for now, countries looking to satisfy their domestic medical cannabis markets will continue to look to Canadian companies.

Investors looking to make fast gains from the largest growing industry in the world should set their sights on the medical cannabis companies that are already bringing home profits from the global markets.

Those who focus on the recreational market a year from now will miss out on the gains that are underway today.


Jose Vilchez-Azcona
for The Daily Reckoning

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