DSEEGS wrote: -
Canada has delayed the legalization process for recreational cannabis-use. It was supposed to be legalized by July of this year, but now that’s not going to happen. As a result, we have seen a number of cannabis stocks start to plunge. It’s a shame, a lot of people were eager to know the direction the Canadian cannabis industry was going to head in this year.
That said, I don’t think every Canadian cannabis company is going to struggle because of the delay. In fact, there’s one company in particular that just might end up benefiting from it. Who? Why the first royalty marijuana stock, of course!
Cannabis Wheaton Income Corp. (CVE:CBW)
A delay might look like it would pose a threat to Cannabis Wheaton, but I actually think it might end up being the opposite. Headquartered in Toronto, Cannabis Wheaton is an investment company that primarily looks to provide investor returns via capital appreciation in the cannabis sector in Canada.
>>Two Canadian Cannabis Stocks Inching Higher
It currently has a market capitalization of 592.64 million. The company itself has had a positive past couple of months, witnessing some massive gains in its stock price as well as announcing a new joint venture with one of the largest greenhouse builders in Canada: Peter Quiring.
So, why might Cannabis Wheaton benefit from the delay? Well, it all boils down to the simple fact that Cannabis Wheaton mostly works with small or private operations. Essentially, the delay will give these small operations, which tend to be reasonably low-key, more time to work out any issues they have been having, such as production issues. It will also give them more time to give Cannabis Wheaton their licensed quota.
Not everyone will agree with this, however. In fact, the stock is actually trading down nearly 3% today. Still, I think giving these companies more time to work with Cannabis Wheaton will prove to be beneficial in the long run. Sometimes, it’s best not to rush things.
very true.....