Its a controversial subject, no matter whether someone talks about it in US or somewhere abroad. The question of legalizing marijuana, whether for medical or recreational purposes, has raged for some decades, and has just started seeing the seeds of fruition stateside.
However, Canada is now weighing in on the contentious industry, by bringing changes in its distribution laws and production, which would legalize any authorized company to not only grow but also to send medical marijuana to the patients. However, the patients would not be authorized to grow themselves. Keeping in view their strong efforts, the country seeks potential backers, both from US and Canada, who are willing to invest.
Speaking to Wall Street Journal, Mark Gobuty, the chief executive of Peace Naturals Project, said, “It’s a much different time than it was a year ago. Before, it was a reputational risk. Today they’re lining up.”
Medican, a bio-pharmaceutical company based in Las Vegas, is gambling that this industry would flourish as much as its product. Medican is getting into the market as a vendor to America’s northern cousin, as it focuses on manufacturing, distributing and marketing of pharmaceutical-grade cannabis to the rising international market.
Ken Williams, the CEO of Medican, said, “The medical marijuana market in Canada will be worth roughly $120 million in its first year, and by 2024, it could be worth as much as $1.3 billion. The time to get into this budding industry is now. If we don’t seize this opportunity, we will miss out on what we believe will be a very profitable market niche that is on the verge of exploding in the next decade.”
According to ArcView Group, a marijuana industry research organization, in US, where twenty states presently allow using medical marijuana, while the states of Colorado and Washington allow its recreational use, the market for licensed marijuana could possibly worth USD 2.5 billion by the end of the current year. Moreover, Colorado, which allowed the use of recreational marijuana at the start of this year, collected over USD 7 million in account for tax revenue in the first two months.
As of now, Medican has signed a deal with LFG Advisory and Accounting, and International Herbs Limited, committing that it would enter the market of Canada with a substantial ownership stake in a large provision in New Brunswick. Currently, Medican is consulting the purchase of 51% of International Herbs Medical Marijuana Limited.