The market for legal cannabis in Canada is new and relatively untested. This is largely due to the fact that cannabis became legal in Canada on October 17, 2018. A report issued by Deloitte in 2016, prior to legalization, estimated that the Canadian cannabis market could be worth up to $22.6 billion [1]. Even prior to legalization, cannabis was the second most consumed substance in Canada, while alcohol was first [2]. With the continuing discussion of and movement towards legalization occurring in the United States, there is potential for the cannabis market to grow.
The majority of Canadians, 68%, are in favor of cannabis legalization [2]. Based on current popular sentiment, including the fact that the majority of Canadians support legalization, we do not view cannabis companies as being at risk of becoming stranded assets.