Next Investors logo grey

Canadian report points to positive regulatory change for MMJ

Published 15-DEC-2016 16:18 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

In an important development for MMJ Phytotech (ASX: MMJ), the Canadian Federal Government has released its final report into Cannabis Legalisation and Regulation (the “Report”).

The report was based on findings and recommendations submitted by the Health Canada instigated Task Force with one of the key areas of focus being the need for a safe and responsible production system with the development of a regulatory framework to support commercial production by the private sector.

There is significant relevance for MMJ with its Canadian based United Greeneries Holdings, a licensed producer under Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR), strategically positioned to build out large-scale horticultural operations to meet forecast commercial production demand for the Canadian recreational cannabis market which, according to industry analysts, is forecast to reach between C$7 billion and C$10 billion on an annualised basis.

With today’s report stating that the current ACMPR arrangement could be used as a starting point for a new national system for legalised and regulated cannabis production, the management of MMJ is upbeat about the prospects of its United Greeneries business prospectively having a first mover advantage in the recreational market.

Importantly, there doesn’t appear to be a long lead time in relation to the report’s findings. As indicated below the Canadian government has indicated it is committed to the introduction of a new regulatory systems by 2017.

Next Investors Image

As a backdrop, the United Greeneries business will be strengthened following the reverse takeover of TSX listed Sol Growth Corp, which will facilitate exposure to the much larger and faster growing North American cannabis market.

MMJ’s shares responded positively to the news, and were up by more than 5% at Midday.

However MMJ is still a speculative stock and share trading patterns and past performance should not be used as the basis for an investment. Those considering this stock should seek independent financial advice.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.