Canada is likely to legalize recreational marijuana this summer, which could be a big catalyst for cannabis stocks in general, more specifically Canadian marijuana stocks.
The industry is still very fragmented so this could be an opportunity for investors to take advantage of the M&A climate that is heating up.
Recent IPO’s and buyouts are a precursor to what’s to come and could indicate a more active summer ahead as opposed to previous years.
Investors interested in pot stocks should pay close attention to the industry heading into this big move by Canada.
Time to set your sights on summer and specifically on one date: June 7. This is when Canada’s Senate is set to vote on and potentially approve bill C-45, which is legislation that would make the recreational use of marijuana legal across the country. The Senate already cleared one key hurdle in March, with a 44-29 vote to allow the bill to advance to committee review.
As it stands today, within the last 100 years the Senate has only voted against one bill approved by the House of Commons. Based on this I think that it’s highly likely the bill will pass the third and final reading without a hitch.
But the key question for the cannabis industry has a lot riding on how big the Canadian recreational marijuana market will actually become. Colorado’s results from legalizing recreational marijuana could provide a clue to the answer.
By: Seeking Alpha