Longtime cannabis executive Chuck Rifici right now runs Auxly Cannabis Group, a diversified cannabis company, based in Toronto. Auxly has invested in 14 different operations in which run the gamut by growth to research to retail, effectively building a consumer packaged goods company in which controls supply. One of his concerns in regard to legalization in Canada is actually product, as provinces are implementing the rollout, as well as in which is actually unclear how much cannabis will be needed to meet demand.
“Certain provinces as well as different jurisdictions across the country will have different levels of preparedness for retail,” Rifici said. “I think we will see empty store shelves, because we’ve seen in which in every additional place within the entire world in which has legalization — a lack of product within the first year. Producers across the country are ramping up production, yet I think in which will be awhile to catch up.”
In year one, Rifici as well as others project a smaller recreational market as the type of product available will be more limited — strictly flower, seeds as well as oils. Edibles, well-known in markets such as California, Washington state as well as Colorado, won’t be for sale until 2019.
While there is actually a lot of focus on the recreational market, some — including Anthony Durkacz, director of FSD Pharma in Cobourg, Ontario — believe the medicinal market is actually where the most money stands to be made. The company, which Auxly invested in, is actually renovating a former 70-acre Kraft facility to build what will become the entire world’s largest hydroponic cannabis farm within the entire world. They’re a licensed producer currently growing product, which they plan to sell within the medicinal market once they obtain a seller’s license within the near future. With so much product flowing to the recreational market, insiders say a potential medicinal shortage is actually possible.
While buzz of a bubble is actually circulating, with Canadian producer Tilray seeing its market cap cut in half a few days ago, soaring to $20 billion yet ending the week near $10 billion, Durkacz maintains cannabis investments are sound.
“We are in a bubble — yet we were in an internet bubble in 1998 in which continued for another few years — if you did not make an investment in 1998, you missed a lions’ share of what could be earned in terms of return on investment,” he said.
as well as while Canadians are optimistic about the opportunity recreational legalization presents in their own country, many are waiting to see if as well as when a ripple effect happens within the United States as well as beyond.
“Hopefully we can show America as well as the rest of the entire world in which legalization is actually the right thing to do,” Durkacz said. “I think in which’s important to put the money back into the people’s hands. The government will generate a lot of taxes as well as revenue as well as add a tremendous amount of jobs, especially in tiny-town America. in which’s important the rest of the entire world gets to see This particular as well as hopefully follows Canada’s lead.”
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