Pubdate: Thu, 22 Oct 2015
Source: Nanaimo Daily News (CN BC)
Copyright: 2015 Nanaimo Daily News
Contact:  http://www.canada.com/nanaimodailynews/
Details: http://www.mapinc.org/media/1608
Author: Darrell Bellaart
Page: 8

ELECTION PROMISE GIVES HOPE TO TILRAY OFFICIALS

The promise of legalized marijuana offers new hope to Nanaimo medical
marijuana producer Tilray.

In December, Tilray was about to ramp up production to create 275 jobs
at its Duke Point facility, when new competition - unlicensed
dispensaries - started cutting into market share.

The Liberals pledged during the election campaign to legalize
marijuana and regulate it so minors can't access the drug.

Tilray CEO Greg Engels said with demand for the company's medical
marijuana curtailed by the proliferation of what he calls "alternative
sources," the company would consider entering the recreational
cannabis market.

"The key moving forward is going to be both the federal, and
provincial government-level programs for regulation," he said. "The
key is safety."

Engels said working models already exist in U.S. states where the drug
is now legalized, and in other countries on a similar path.

"Hopefully government will reach out to stakeholders in existing
systems," he said.

Last year, Tilray bought additional land to expand operations adjacent
to its existing Duke Point property. While expansion plans were
shelved due to a flourishing market of what Engels calls "unregulated"
cannabis, the company still plans for growth.

The cannabis industry has considerable growth potential, according to
a report from market analyst Martin Landry, of GMP Equity Research.
During the election campaign, Justin Trudeau said he would start
working on legalization immediately, which indicates the legislative
changes needed will come "in the first half of his term," Landry
wrote. "However, the Liberals have conceded that it will take time to
form a framework on taxes, access and control."

The report estimates the potential value of the Canadian recreational
marijuana market as between $4 billion and $5 billion annually at maturity.

"As a point of reference, Health Canada estimated that by 2024 the
market for medical marijuana could reach $1.3 billion to $1.4 billion
annually," according to the report, released Tuesday.

With legalization likely, Tilray will "certainly be actively
monitoring the development," for new opportunities. "We see positive
growth, (and) we expect that to increase as the recreational market
increases."

Still, not all users buy commercial product.

"What we've seen in those U.S. states where it's legalized, people
migrate both to the legitimate and non-legitimate sources," Engels
said.
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MAP posted-by: Matt