Canadian marijuana businesses got a confidence boost from a CBC News report that the government plans to legalize recreational marijuana by July 2018, although big questions remain about how the legal market will work in different provinces.
The newly revealed date for the debut of legal cannabis is “exactly along the lines of what we expected,” said Neil Maruoka, a stock analyst with Canaccord Genuity who covers publicly traded marijuana companies.
“Certainly there are some companies with more aggressive expansion plans, and this will give some comfort and clarity on what that path forward is going to be,” he said.
Stocks in Canadian marijuana companies swelled on Monday. Shares of Canopy Growth Corp., Canada’s largest publicly traded marijuana producer, gained more than 11 per cent. Shares of Aphria, another large player, gained about 8.4 per cent.
The tabling of the legislation, expected the week of April 10, should be “the tide that lifts all cannabis stocks,” said Maruoka. [Read more at CBC News]