Canada marked an important milestone on legalizing recreational cannabis use in 2018, on the federal level. While the move resulted in the expansion of the multi-billion industry, the opportunities that have cropped up continue to validate the legalization drive. Creation of new job opportunities provides a glimpse of how cannabis is having a significant impact on local economies.
Cannabis Sector Opportunities
Thanks to recreational use legalization, the Canadian cannabis industry employs more than 9,200 people, a 250% increase over the past year. Increased employment opportunities stem from an increase in the number of companies directly or indirectly dealing on the cannabis plant.
The number of cannabis companies has since increased from 83 to 175 and in the process given rise to exciting employment opportunities right from the cultivation of the plant to the selling of the final product. A spike in employment opportunities also stems from an increase in investments into the sector as companies continue to pursue new opportunities for growth.
For instance, the value of assets in the cannabis industry has clocked highs of $4.2 billion from $2.5 billion as of the end of 2017, thanks to increased investments. Similarly, revenues have risen to highs of $647 million thanks to the expansion of the cannabis marketplace.
Growing revenues has everything to do with a change and growth in cannabis consumption pattern. Data by the National Cannabis Survey indicates that male cannabis consumption may account for a huge chunk of cannabis revenues.
The study suggests that men are twice as likely to use cannabis this year compared to women. Consumption also appears to be transcending age with 21% of male above 15 years already using the plant in various forms.
The most consumed form of cannabis in Canada is smoked dried flower at 26%, despite it being illegal. Following recreational use legalization, edibles legalization will mark yet another important milestone. Cannabis edibles should result in further expansion of the Canadian cannabis marketplace, presenting new opportunities for cannabis operators.
Canadian Cannabis Stocks To Watch
TerrAscend Corp (CNSX:TER) is one of the companies well positioned to benefit from the expansion of the Canadian cannabis marketplace. The licensed cannabis cultivator and manufacturer is fresh from reporting record revenues of $749,000.
The company continues to produce record amounts of cannabis products using unique aeroponic technology. Narrowing net loss is another development that underscores the companies push for positive cash flow and shareholder value going forward.
Aurora Cannabis Inc. (TSE:ACB) is another heavyweight in the Canadian cannabis landscape. This is an ideal pick for gaining exposure to the country’s burgeoning sector as it boosts of fast mover advantage. The company has accrued a substantial amount of market share, thanks to a robust cannabis production capacity.
Aurora Cannabis is the most successful cannabis with its cannabis capacity poised to reach 625,000 kg annually. The company remains well positioned to pursue all the facets of the cannabis sector right from medical use to recreational use as well as edibles, given its robust production capacity.
Canopy Growth Corp (TSE:WEED) is another company with huge prospects in the Canadian cannabis industry. Being a market leader, the company has carried out a string of acquisitions as well as foreign partnerships as it continues to strengthen its prospects in the industry. While the stock has plunged in recent weeks, it appears to be trading at a discount relative to its long term prospects.