Estimated revenue from marijuana legalization increases to $58 million

Estimated revenue from marijuana legalization increases to $58 million

Governor Signs Marijuana Legalization Bill, Making History In US Territory

In this Sept. 24, 2018 photo, a pin promoting Crop King Seeds, with the colors and maple-leaf logo of the Canadian flag, is displayed on a package of marijuana seeds for sale at the Warmland Centre, a medical marijuana dispensary in Mill Bay, British Columbia, on Vancouver Island in Canada. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

In this Sept. 25, 2018 photo, a worker walks through a massive tomato greenhouse being renovated to grow pot in Delta, British Columbia, that is operated by Pure Sunfarms, a joint venture between tomato grower Village Farms International, and a licensed medical marijuana producer, Emerald Health Therapeutics. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

In this Sept. 25, 2018 photo, Devin Melnyk, a long-time marijuana grower and a consultant with Pure Sunfarms, demonstrates how to use a high-volume cannabis trimming machine at a massive tomato greenhouse being renovated to grow pot in Delta, British Columbia. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

Canopy Growth has become one of the biggest listed cannabis companies in the world since its founding in 2013. The company, which grows, markets and researches cannabis products, had revenue of C$77.9 million in the fiscal year ending March 31, up from C$39.9 million the year earlier. The stock has gained 346% in the last 12 months, while the S&P 500 SPX, -1.57%  has gained 14%.

Canada Senate approves recreational use of marijuana

In this Sept. 25, 2018 photo, visitors walk near Canada Place, a tourism and convention center in Vancouver, British Columbia. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, a profound social shift promised by Canadian Prime Minister Justin Trudeau and fueled by a desire to bring the black market into a regulated, taxed system. (AP Photo/Ted S. Warren)

While there could be some cannibalization risk for Constellation Brands beer/alcohol portfolio, we believe the strategic partnership will ultimately be incremental to Constellation Brands core business, especially as the deal opens the door to tremendous white space opportunities globally – beyond Constellation Brands current U.S. limits with its core brands.

In this Sept. 26, 2018 photo, a pedestrian walks past a sign advertising jobs with BC Cannabis Operations in front of the warehouse in Richmond, British Columbia, that will store pot purchased from licensed producers before it is shipped to retail shops and online customers. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

In this Sept. 25, 2018 photo, a worker holds a marijuana plant leaf in a massive tomato greenhouse being renovated to grow pot in Delta, British Columbia, that is operated by Pure Sunfarms, a joint venture between tomato grower Village Farms International, and a licensed medical marijuana producer, Emerald Health Therapeutics. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

In this Sept. 25, 2018 photo, a BC Ferries boat sails near Vancouver Island, British Columbia, at sunrise. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, a social-policy shift promised by Canadian Prime Minister Justin Trudeau and fueled by a desire to bring the black market into a regulated, taxed system. (AP Photo/Ted S. Warren)

In this Sept. 25, 2018 photo, marijuana plants are shown growing in a massive tomato greenhouse being renovated to grow pot in Delta, British Columbia, that is operated by Pure Sunfarms, a joint venture between tomato grower Village Farms International, and a licensed medical marijuana producer, Emerald Health Therapeutics. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

In this Sept. 24, 2018 photo, Mat Beren, owner of the marijuana seed producer The House of the Great Gardener, poses for a photo in the Warmland Centre, a medical marijuana dispensary in Mill Bay, British Columbia, on Vancouver Island in Canada. Beren, who is also a consultant with the government-licensed pot-growing giant Canopy Growth, is now growing weed in giant greenhouses as Canada prepares to become the second and largest country with a legal national marijuana marketplace on Oct. 17, 2018. (AP Photo/Ted S. Warren)

Canopy, meanwhile, is planning to use the proceeds to build or acquire assets needed to create global scale in the nearly 30 countries that are pursuing legal medical cannabis programs and lay the foundation for emerging recreational cannabis markets.

In this Sept. 24, 2018 photo, Mat Beren, owner of the marijuana seed producer The House of the Great Gardener, poses for a photo in front of a poster touting several of the varieties he offers that is displayed in the Warmland Centre, a medical marijuana dispensary in Mill Bay, British Columbia, on Vancouver Island in Canada. Beren, who is also a consultant with the government-licensed pot-growing giant Canopy Growth, is now growing weed in giant greenhouses as Canada prepares to become the second and largest country with a legal national marijuana marketplace on Oct. 17, 2018. (AP Photo/Ted S. Warren)

Uruguay was the first country to legalize cannabiss production, sale and consumption in 2013. In the U.S., 30 states have approved medical cannabis, while nine states and the District of Columbia have approved it for recreational use.

In this Sept. 24, 2018 photo, different strains of marijuana are displayed for sale at the Warmland Centre, a medical marijuana dispensary in Mill Bay, British Columbia on Vancouver Island in Canada. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, forcing many dispensaries, including Warmland, to close temporarily until they receive licenses under the new recreational system. (AP Photo/Ted S. Warren)

Constellation Brands is expecting the deal to be accretive starting in 2021 and said it will cease from engaging in M&A or share buybacks until it has lowered its leverage to 3.5 times to maintain its investment-grade credit rating.

In this Sept. 25, 2018 photo, bottles of maple syrup and olive oil infused with CBD marijuana extract are displayed for sale at the Village Bloomery medical cannabis dispensary in Vancouver, British Columbia. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

U.S.-listed shares of Canada-based Canopy Growth Corp. soared almost 30% Wednesday, after liquor seller Constellation Brands Inc. said it will invest another CAD $5 billion, or about $4 billion, in the diversified cannabis company.

In this Sept. 24, 2018 photo, customer Seth McKay, right, talks with manager Ruby Bressan, at the Warmland Centre, a medical marijuana dispensary in Mill Bay, British Columbia, on Vancouver Island, as shop dog Delilah looks on. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, forcing many dispensaries, including Warmland, to close temporarily until they receive licenses under the new recreational system. (AP Photo/Ted S. Warren)

Other cannabis stocks also rallied Wednesday. Tilray TLRY, +4.54% the first company to conduct a U.S. IPO, was up 16.4%. Cronos Group CRON, -5.25%  was up 13.3% and Aurora Cannabis Inc. ACBFF, -2.81%  surged 18.8%.

In this Sept. 24, 2018 photo, Sarah Campbell, of the Craft Cannabis Association of British Columbia, visits with employees at the Warmland Centre, a medical marijuana dispensary in Mill Bay, British Columbia on Vancouver Island. As Canada prepares to become the second and largest country with a legal national marijuana marketplace on Oct. 17, 2018, some longtime illegal growers who operate on a much smaller scale worry they wont get licensed or will get steamrolled by much larger producers. Campbell said many small growers envision a day when they can host visitors who can tour their operations and sample the product, as is the case with wineries. (AP Photo/Ted S. Warren)

Although this limits some of STZs flexibility, we believe STZ has exceptional upside optionality into the cannabis market as arguably the best positioned global player, said Wells Fargos Herzog.

In this Sept. 25, 2018 photo, a massive tomato greenhouse being renovated to grow marijuana is shown in Delta, British Columbia. The facility is operated by Pure Sunfarms, a joint venture between tomato grower Village Farms International, and a licensed medical marijuana producer, Emerald Health Therapeutics. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

Canada is gearing up for full legalization of the substance after the Senate passed a bill in June. The Canadian government is expected to select a date sometime in September for the official launch.

In this Sept. 26, 2018 photo, U.S. and Canadian flags fly on the Peace Arch monument at the U.S.-Canadian border near Blaine, Wash., and Surrey, British Columbia. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, in contrast to the United States, where the federal government outlaws marijuana while most states allow medical or recreational use for people 21 and older. (AP Photo/Ted S. Warren)

In this Sept. 25, 2018 photo, marijuana plants are shown growing in a massive tomato greenhouse being renovated to grow pot in Delta, British Columbia, that is operated by Pure Sunfarms, a joint venture between tomato grower Village Farms International, and a licensed medical marijuana producer, Emerald Health Therapeutics. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

In this Sept. 24, 2018 photo, bud tender Dave Chelli works at the Warmland Centre, a medical marijuana dispensary in Mill Bay, British Columbia, on Vancouver Island. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, forcing many dispensaries, including Warmland, to close temporarily until they receive licenses under the new recreational system. (AP Photo/Ted S. Warren)

Constellations stock was down 6.0%, and has lost 8.8% in 2018, compared with the S&P 500 indexs SPX, -1.57% 5.3% gain year to date.

In this Sept. 25, 2018 photo, British Columbia safety minister Mike Farnworth poses for a photo in Vancouver, British Columbia. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. Farnworth said after visits to Oregon and Washington — U.S. states with legal recreational marijuana — he has learned not to look at the industry as an immediate cash cow and to start with relatively strict regulations and then loosen them as needed. (AP Photo/Ted S. Warren)

Canopys U.S.-listed shares rocketed 30%, which would be their biggest one-day gain since they started trading on the NYSE in May 2018.

In this Sept. 26, 2018 photo, a Canada Post worker walks to his truck in Richmond, British Columbia. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, a social-policy shift promised by Canadian Prime Minister Justin Trudeau and fueled by a desire to bring the black market into a regulated, taxed system. Canadas national approach will also permit online ordering and postal delivery of pot. (AP Photo/Ted S. Warren)

See now: These sin stocks are increasing sales the most (and CDC bosss pick doesnt make the list)

In this Sept. 26, 2018 photo, a sign that reads “Its fun to be a Canadian” is displayed near the Peace Arch monument at the U.S.-Canadian border near Blaine, Wash., and Surrey, British Columbia. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, in contrast to the United States, where the federal government outlaws marijuana while most states allow medical or recreational use for people 21 and older. (AP Photo/Ted S. Warren)

In this Sept. 24, 2018 photo, bud tender Dave Chelli works at the Warmland Centre, a medical marijuana dispensary in Mill Bay, British Columbia, on Vancouver Island, next to a sign saying the shop will close temporarily before Oct. 17, 2018, when Canada will become the second and largest country with a legal national marijuana marketplace. Warmland plans to reopen after they receive a license under the new recreational system. (AP Photo/Ted S. Warren)

In this Sept. 25, 2018 photo, Devin Melnyk, a long-time marijuana grower and a consultant with Pure Sunfarms, holds trimmed marijuana as it comes out of a high-volume cannabis trimming machine at a massive tomato greenhouse being renovated to grow pot in Delta, British Columbia. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace. (AP Photo/Ted S. Warren)

In this Sept. 24, 2018 photo, Chris Clay, a longtime Canadian medical marijuana activist and owner of the Warmland Centre, a medical marijuana dispensary in Mill Bay, British Columbia, on Vancouver Island, poses for a photo as he stands next to a display in his shop of historic cannabis-based medicine bottles. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, forcing many dispensaries, including Warmland, to close temporarily until they receive licenses under the new recreational system. (AP Photo/Ted S. Warren)

In this Sept. 25, 2018 photo, Peter Backlund, an employee at the Village Bloomery medical cannabis dispensary in Vancouver, British Columbia, organizes a display. On Oct. 17, 2018, Canada will become the second and largest country with a legal national marijuana marketplace, forcing many dispensaries, including the Village Bloomery, to stop selling many products, including vape pens, that they currently carry. (AP Photo/Ted S. Warren)

Canada is preparing for the day that sales of marijuana for recreational use become legal. About 100 dispensaries across the country are expected to be open on the first day of sales on October 17th. (Oct. 10)

× Canada is preparing for the day that sales of marijuana for recreational use become legal. About 100 dispensaries across the country are expected to be open on the first day of sales on October 17th. (Oct. 10)

DELTA, British Columbia (AP) — Mat Beren and his friends used to drive by the vast greenhouses of southern British Columbia and joke about how much weed they could grow there.

Years later, its no joke. The tomato and pepper plants that once filled some of those greenhouses have been replaced with a new cash crop: marijuana. Beren and other formerly illicit growers are helping cultivate it. The buyers no longer are unlawful dealers or dubious medical dispensaries; its the Canadian government.

On Oct. 17, Canada becomes the second and largest country with a legal national marijuana marketplace. Uruguay launched legal sales last year, after several years of planning.

Its a profound social shift promised by Canadian Prime Minister Justin Trudeau and fueled by a desire to bring the black market into a regulated, taxed system after nearly a century of prohibition.

It also stands in contrast to the United States, where the federal government outlaws marijuana while most states allow medical or recreational use for people 21 and older. Canadas national approach has allowed for unfettered industry banking, inter-province shipments of cannabis, online ordering, postal delivery and billions of dollars in investment; national prohibition in the U.S. has stifled greater industry expansion there.


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