Derek Peterson is worried about Canadian weed.
The CEO of California-based marijuana producer and seller Terra Tech is watching the cannabis industry boom north of the border with more than a little apprehension — because he is already seeing the beginnings of an invasion of U.S. markets by Canada’s cannabis firms, today the world’s largest.
“The concern for some of the players is the market will be dominated by Canadian companies, shareholders and banks if we allow too much time to pass,” Peterson said by phone from California.
With Canada set to legalize recreational marijuana on Oct. 17, Canadian cannabis stock prices have soared, giving these startup firms enormous amounts of money with which to invest in their business.
Meanwhile, U.S. companies, encumbered by the country’s continuing federal prohibition, aren’t seeing nearly the sorts of valuations Canadian companies are seeing.
“They who have capital get to soak up market share,” Peterson said, adding that Canadian companies are “capitalizing themselves extremely well and doing arms’-length investments in U.S. markets, locking down branding opportunities and buying players.”
Peterson figures the U.S. has only a few years to “get its act together” and reform marijuana laws at the federal level, or Canadian companies stand to win the game.
“If we don’t see something happen in 2019, almost all of us will be takeout targets for Canadian players,” he said. [Read More @ Huffington Post]
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