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Canada's Licensed Producers Gear Up for Recreational Market -- CFN Media

N.MGW, IVITF

SEATTLE, WA--(Marketwired - Apr 21, 2017) -  CFN Media Group ("CFN Media"), the leading agency and digital media network dedicated to legal cannabis, today announced publication of an article discussing Canada's upcoming legalization and some licensed producers that are poised to capitalize on the greatly expanded market. Companies discussed include Maple Leaf Green World (TSX VENTURE: MGW) (OTCQB: MGWFF), Emerald Health Therapeutics (TSX VENTURE: EMH), and Invicuts MD Strategies (TSX VENTURE: IMH) (OTC PINK: IVITF). Three licensed producers expected to go public in the next week or so are also discussed: ABcann Global (ABcann Medicinals), WeedMD, and Harvest One.

Prime Minister Justin Trudeau's government introduced long-awaited legislation that would permit adults to possess, share, and purchase marijuana earlier this month. Under the new regulations, provinces and territories would make their own decisions about the distribution and sale of marijuana. Consumers living in provinces without a regulated retail framework would be able to purchase cannabis online from a federally-licensed producer with secure home delivery.

Parliamentary committees will review the legislation, but the Liberals' majority in the House of Commons means that it's extremely likely to pass into law. According to senior government officials, Canadians should be able to legally smoke marijuana by July 1, 2018 after the bill passes through final regulatory steps and provinces have time to build a framework and develop specific regulations that work best with their jurisdictions.

Canada's legal cannabis industry could see sales of $4.9 billion to $8.7 billion after recreational legalization, according to Deloitte Canada. The consultancy based its findings on a survey of 5,000 Canadians through market research firm RIWI Corp. Deloitte Canada reckons that the market could be worth between $12.7 billion and $22.6 billion when including ancillary goods and services that support the industry -- excluding tourism and paraphernalia.

Many analysts believe that the market will experience a shortfall in supply given that there are only about 40 licensed producers. For instance, PI Financial believes that licensed producers will need to cultivate a total of 610,000 kilograms of cannabis to fulfill domestic and export demand by 2019, but existing capacity could result in a 200,000 kilogram shortfall.

"The rigorous process of becoming a licensed producer of cannabis in Canada imposes significant barriers to entry and there will be a shortfall in supply in a legalized market in the short-term until production capacities catch up by 2020," said Canaccord Genuity Group Inc. analysts in a November 2016 research note. This could create an enormous opportunity for existing licensed producers that enjoy an oligopoly over the short- to medium-term.

Please follow the link to read the full article: http://www.cannabisfn.com/canadas-licensed-producers-gear-recreational-market/

Learn how to become a CFN Media featured company, brand or entrepreneur: http://www.cannabisfn.com/become-featured-company/

Download the CFN Media iOS mobile app to access the world of cannabis from your smart phone: https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8

Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link text on your iPhone: http://www.cannabisfn.com

About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.

Disclaimer:
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC, which owns CFN Media and CannabisFN.com, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.

CFN Media
Frank Lane
206-369-7050
flane@cannabisfn.com



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