NetworkNewsWire Editorial Coverage: While developments in U.S. marijuana markets have no trouble attracting headlines, many seasoned investors have discovered a more predictable method of capitalizing on the cannabis boom by turning their attention to the north. Data from Health Canada suggest that almost 130,000 Canadians had signed up with the country’s 38 licensed cannabis producers by the end of 2016, more than tripling in number from the previous year. One of these licensed producers is ABcann Global Corp. (OTCQB: ABCCF) (TSX.V: ABCN) (ABCCF Profile), which has remained focused on changing the face of medical cannabis since its launch in 2014. With fellow licensed producers Canopy Growth Corp. (OTC: TWMJF) (TSX: WEED), Aurora Cannabis, Inc. (OTCQX: ACBFF) (TSX: ACB) and Aphria, Inc. (OTCQB: APHQF) (TSX: APH) all recording huge PPS spikes approaching or exceeding 1,000 percent following their respective IPOs, ABcann’s comparatively low market cap, combined with its strong balance sheet reflecting investment from cannabis streaming company Cannabis Wheaton Income Corp. (OTC: KWFLF) (TSX.V: CBW), makes it an intriguing investment opportunity as Canada prepares to legalize recreational use of marijuana at the federal level in 2018.
The impending legalization of marijuana for recreational use in Canada could offer licensed producers a chance to record tremendous growth in the coming months. According to a 2016 report by Deloitte, the legal Canadian marijuana market could soon be worth $18 billion annually. As for volume, Deloitte forecast annual demand for the plant at about 1.32 million pounds per year. Therein lies the opportunity. As of the 2016 report, Canada’s network of licensed growers produced about 20,000 pound of dried marijuana per year. Just last week, investors were given an early glimpse into the possibilities presented by this supply bottleneck.
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