Most investors have focused on Canada as the first North American country to completely legalize recreational cannabis sales. As far as that goes, the Toronto Stock Exchange has had an interesting ride.
But while I’m looking forward to “Canada 2.0” opening dispensary shelves to more profitable products, we have to keep it real. Canada is a great country with 0.4 percent of the world’s population.
The real opportunity here is global. That’s why I’m excited to see Mexico debating whether to relax the rules on cannabis products and cannabis stocks.
Aurora Cannabis Inc. (NYSE: ACB) was quick to take advantage, making back-to-back deals with existing Mexican companies. But Senator Cora Cecilia Pinedo Alonso estimates that this will be a stunning $12 trillion market over the next 10 years.
Here at home, Pennsylvania state senators have introduced a bill to legalize recreational marijuana. So far, support is along party lines. Democrats are in favor of the bill, as is Governor Tom Wolf, but Republicans are not yet on board.
“It’s an economic, political, and moral win for both sides,” said state Sen. Leach, one of the co-sponsors. “It keeps the black market tamped down, the $500 million generated in cannabis fees would be directed to the schools, it decreases regulation by eliminating the seed-to-sale tracking.”
Vireo Health International Inc. (OTCMKTS: VREOF) signed a labor agreement covering its Pennsylvania facilities, including a Scranton cannabis cultivation and processing facility, as well as dispensaries planned for Scranton, Bethlehem and Stroudsburg.
Ohio looks like the “best chance” for the next state to legalize recreational marijuana. Things are in motion for voting by the end of this year.
This could be a great Christmas for owners of MedMen Enterprises (OTCMKTS: MMNFF). They’ll get access to the Ohio market once they finish their deal to take over PharmaCann, which already is a licensed Level I Cultivator.
Back in Canada, it’s all about those next-generation products. Cannabis-infused beer is projected to hit the shelves later this year. Molson Coors Brewing Co. (NYSE: TAP) is already ready to move while Sproutly Canada Inc. (OTCMKTS: SRUTF) will supply local favorite Moosehead with the green ingredient it needs.
This could be the chance for Big Liquor to turn around some of the losses they’ve suffered in recent years. In the meantime, it keeps the focus on the north, where my Turbo Trader Marijuana Millionaire Portfolio is currently concentrated.