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Here Comes Canada

Based on the passage of the Cannabis Act on June 19 in Canada, adults will be able to legally purchase marijuana beginning Oct. 17, 2018. That’s right — Canada will be the first industrialized country in the world to give the green light to recreational marijuana.

When the calendar changes to Oct. 17, it’s practically a guarantee that demand for marijuana is going to exceed supply — and by a significant amount. Regulatory agency Health Canada predicts that demand could hit 1 million kilograms domestically each year. Meanwhile, production for every licensed grower combined may not even be at half of this level. That should be a recipe for relatively strong per-gram cannabis prices out of the gate.

Per the bill, adults over the age of 18 will be allowed to purchase marijuana, as well as possess up to 30 grams of dried cannabis for personal consumption. No decision has been made on edibles, though amendments included in recent Senate debates ensure that the federal government will have the ability to address edible regulation in the future.

Similarly, there are harsh laws regulating the sale of cannabis to minors. Those found guilty of selling cannabis to those under the age of 18 could face up to 14 years in jail.

Another good question is whether legalization the same throughout all of Canada’s provinces? Just as we’ve witnessed individual states in the States set their own laws and regulations, provinces in Canada also have the ability to regulate marijuana as they see fit.

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