Bill C-45 progresses
On May 28, Bill C-45 (or the Cannabis Act), Canada’s recreational cannabis legalization bill, saw further progress in the Senate. As the Canadian legislators work to iron out the details of the bill before it becomes a law, yesterday’s progress was primarily focused on review and approval of proposed amendments.
One of the amendments that wasn’t upheld included a blanket ban on allowing cannabis to be grown at home throughout all provinces. However, another related amendment that gave provinces the authority to ban growing at home was accepted.
Cannabis investors are closely watching the progress of this bill, since it may positively or negatively impact some of the players in the cannabis industry. For example, the legalization of home cultivation would likely be a positive for companies (HMMJ) such as Scotts-Miracle Grow (SMG). Unlike Canopy Growth (WEED) and Aurora Cannabis (ACB) (ACBFF), SMG doesn’t produce cannabis, but it sells related products required to grow cannabis indoors to the retail market. The committee also arrived at a consensus on the limit to the potency of marijuana products following legalization.
Read about the recent valuation multiples for cannabis companies in Cannabis Sector Back in the Red for Week Ended May 25.