BUSINESS REPORT: How big can Canada’s marijuana sector be?
Throughout the rollercoaster that has been the share prices of marijuana stocks, a key question for the medicinal and the recreational market is: how big can this sector be?
According to data from Bloomberg, there have been 10 new listings on the TSX Venture and Canadian Securities Exchange this year, 51 businesses are cleared to grow pot, and another 815 applicants.
This could contribute to a tenfold in supply.
According to Simon Fraser University criminologist Neil Boyd, only a small proportion of people don’t see legality as a hindrance to its use, which could pose a challenge to forecasting demand for when regulations change.
Meanwhile for investors, the challenge has been predicting the future balance of this market.
For example, Canopy Growth Corp, the first marijuana start to a billion-dollar valuation has seen their stock tumble 21 per cent in the last three months as perhaps a little exhaustion hits this previously hot sector.
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