Canada’s Recreational Bill And Stocks Could Be In Trouble

there’s quite a bit of opposition to Canada’s recreational marijuana legalization efforts, and it could wind up pushing Trudeau’s legislation off the table altogether.

Though Canada’s current government make-up could reasonably be described as “progressive,” conservative members of Parliament could make legalization far more challenging than people and investors realize.

Image result for canada recreational marijuana bill

there’s quite a bit of opposition to Canada’s recreational marijuana legalization efforts, and it could wind up pushing Trudeau’s legislation off the table altogether.

Though Canada’s current government make-up could reasonably be described as “progressive,” conservative members of Parliament could make legalization far more challenging than people and investors realize.

Image result for medical marijuana

Another primary issue involves how impairment for drivers behind the wheel will be measured. Though there are a handful of companies developing breathalyzer tests that can detect levels of tetrahydrocannabinol (THC), the psychoactive component of cannabis, in drivers, there are no baselines to describe what would be considered an unacceptable level of impairment. For instance, a blood alcohol content of 0.08% or higher in the U.S. is considered impaired for a driver. There aren’t any guidelines for marijuana use, which makes resolving the concerns of lawmakers exceptionally challenging.

Image result for medical marijuana

If Canada is unable to get its recreational weed bill passed into law, Canadian marijuana stocks, which have risen considerably in anticipation of an expected legalization, could quickly lose the wind from their sails. The four, in particular, that are at greatest risk of having their valuations take a hit are Canopy Growth Corp. Aphria, Aurora Cannabis and MedReleaf.

Image result for canada marijuana business

Health Canada also announced changes to its medical cannabis program in May that could have negative implications for the four Canadian marijuana stocks listed above. Health Canada plans to issue additional growing licenses, as well as allow existing producers to pack their vaults with supply, assuming it can be done safely and securely. In other words, it sounds as if extra competition and supply are on the verge of flooding the Canadian market. That’s not good news for any of these four companies.

Long story short, Canadian marijuana stock investors may soon wind up sorely disappointed.

Image result for marijuana stock