Medical marijuana companies hoping to tap new markets after legalisation in Canada

By @chelean on
Canada flag
Days before full marijuana legalisation, the world has trained its eyes on Canada. However, some are still uncertain what this would mean for the medical marijuana industry. Creative Commons

And so the tides have fully turned for cannabis, at least, that’s the case in Canada, which is set to become the second nation that will grant the plant full legalisation starting Oct.17

As it stands, Canada, along with the rest of the world, are counting down the days until the switch is finally flipped for good, and everyone can all legally enjoy recreational marijuana anywhere, anytime. After all, on paper, it all sounds so incredibly simple. Canada will turn on a cataclysmic switch, and the world will be changed forever. Again, incredibly simple.

And just like that, Canada can say goodbye to nearly a century of marijuana prohibition, to its black market, and to its officers tasked to crack down on cannabis operations.

But of course, that’s only on paper. And while cannabis legalisation can be delivered in a simple announcement and the passing of a law, the stigma that surrounds the plant and its market won’t disappear overnight. Oct. 17 surely looms over as a cultural sea change, but the overall effects won’t be immediate.

Activists and law experts are saying that the day weed finally becomes legal is also the day that marks the start of an uncertain battle for the soul of the industry that started it. As the regulatory age for cannabis comes in, some are scared that it will eventually take over so much that the community around it won’t even be a part of its growth anymore.

The other side of the fence

Things aren’t so crystal clear this side of the medical marijuana industry either. Just last month, the Canadian Medical Association asked that the medical marijuana system be phased out after the legalisation, with its vice president stating that there would be no need for physicians to use cannabis once it becomes fully legal.

Health Canada, which is the country’s government department for national public health, was quick to retaliate, however, stating that “measures under the Cannabis Act aim to facilitate research with the goal of improving our knowledge of the risks and benefits of cannabis.”

For medical marijuana companies that have already found success long before the upcoming legalisation, support from a governing body is more than good news.

One example of a company is FSD Pharma (OTCMKTS: FSDDF) (CNSX: HUGE) , a publicly traded medical marijuana company under the Canadian Securities Exchange that operates alongside its wholly owned subsidiary FV Pharma Inc.

Based in Ontario, the company currently holds an ACMPR licence to grow and cultivate cannabis under the Access to Cannabis for Medical Purposes Regulations (ACMPR). Making history on its first day of trading under the exchange by breaking the all-time record for volume traded on a single day, the company is one of the most successful medical marijuana companies in Canada. Later that year, the company went on to break the all-time weekly and yearly record in the same category.

For FSD Pharma, the legalisation, albeit a big one, is merely a step in the right direction for the country. And as with any step, this one comes with its own set of challenges and setbacks. One is that there may very well be two markets for marijuana starting this month. Another is that between companies focused on moving products, and science-based companies, things may get confusing.

In a clip from CNBC’s Squawk on the Street interview, FSD Pharma Director Anthony Durkacz also said, “A lot still needs to happen, banking support, regulation, and as you said, institutional shareholder bases.”

drugs sign Throughout history, recreational marijuana has always thrived more than its medical counterpart. Still, people are hoping that come Oct. 17, the same won’t happen to Canada.  Creative Commons

Still, based on the company’s recent moves, the director sees the emerging industry as a very attractive opportunity from an investment perspective, even more so with the increased public acceptance for the industry. Earlier this year, the company acquired a former Kraft facility measuring 70 acres, which FSD Pharma plans on converting into the world’s biggest indoor hydroponic cannabis farm.

There is still a lot of work to be done for both the recreational and medical marijuana industry. But with Canada’s department on national public health showing support for medical marijuana, companies like FSD Pharma are hopeful that the upcoming legalisation will pave the way for the sector to tap into new markets such as investments and stocks.

It is simply a reality now that cannabis is part of the medical landscape, and it has been the case for many years now. Furthermore, whatever the outcome, both researchers and patient advocates will surely be expressing support for continuing marijuana’s medical system after the legalisation.

IBTimes Australia does not endorse any product or practice stated above. The article is based on press releases sent for consideration.

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