Pubdate: Mon, 14 Sep 2015
Source: National Post (Canada)
Copyright: 2015 Canwest Publishing Inc.
Contact: http://drugsense.org/url/wEtbT4yU
Website: http://www.nationalpost.com/
Details: http://www.mapinc.org/media/286
Author: Alexandra Posadzki
Page: FP2

ELECTION MAY MEAN BIG GROWTH FOR POT INDUSTRY

TORONTO * Medical marijuana producers are bracing for the possibility 
that Canadians could elect a new government this fall - a change that 
could accelerate the already breakneck pace of growth in the 
burgeoning industry and usher in new players such as tobacco 
companies and pharmacy chains.

"This whole election's very interesting," said Bruce Linton, the CEO 
and chairman of Tweed Marijuana Inc. "When you have a business that 
has the potential to see quite a lot of acceleration because of 
outcomes, you watch it more carefully."

Marijuana became a hot-button issue in the election campaign on 
Thursday, when Joy Davies, a Liberal candidate in B.C., pulled out of 
the race because of posts she had made on Facebook about marijuana.

Liberal Leader Justin Trudeau distanced himself from Davies when 
asked about her posts, which included claims that marijuana can cure 
skin cancer and a link to an academic study suggesting pot decreases 
domestic violence.

Trudeau has long promised to legalize and regulate marijuana if 
elected, while NDP Leader Tom Mulcair has said his party would 
decriminalize the drug immediately upon forming government.

Khurram Malik, an analyst at Jacob Securities, says the election of 
either the Liberals or the NDP could lead to less red tape for 
licensed medical marijuana producers.

"We have the most anti-weed party in power right now," Malik said. 
"Any other party that wins is a lot more friendly to marijuana than 
this one, so things will get done a little more efficiently and 
openly, so people can actually plan their businesses in a more 
reasonable and logical manner."

The introduction of a recreational marijuana program could bring new 
players such as tobacco and liquor companies into the market, Malik 
added. Currently the industry is too small for the giants to bother 
with, he said.

"Big tobacco never comes in and starts from scratch," he said. "They 
always buy something, and then build it into something bigger."

Michael Haines, the CEO of Mettrum Health Corp., says the creation of 
a recreational program - similar to those that exist in Colorado and 
Washington state in the U.S. - could create a dual system. While the 
medical program would likely continue to be federally regulated, 
recreational programs may be regulated at the provincial level, 
similar to alcohol.

However, a recreational marijuana program would take at least a year 
or two to implement, Malik said.

"It's a complicated program to set up, and then they've got to figure 
out how to capture taxes from it, which is not an easy thing to do," he said.

A changing of the guard in Ottawa could also result in new 
distribution rules. Currently, federal rules only allow licensed 
cannabis producers to distribute product to customers via mail - a 
process that can be confusing for patients, who are more accustomed 
to picking up their drugs in person at pharmacies.

Adding to the confusion is the proliferation of medical marijuana 
dispensaries in some parts of the country.

Some local authorities have turned a blind eye to the dispensaries 
and the City of Vancouver has moved to license them, providing some 
legitimacy to the shops. But Health Canada has called the 
dispensaries illegal and threatened an RCMP crackdown if they don't 
close up shop.

"Before any government would want to look at any potential changes, 
that's one of the issues they would need to address before moving 
forward," said Greg Engel, the chief executive of B.C.-based Tilray.

Haines says he isn't holding his breath waiting for the end of the 
marijuana prohibition era.

"We didn't get into this business hoping that it turns into a 
recreational market," said Haines, noting that Mettrum already has a 
"thriving business" within the medical sphere.

"That said, if that were to ever happen, we would be exceptionally 
well-positioned," he added.
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MAP posted-by: Jay Bergstrom