Next Investors logo grey

Creso welcomes Canada’s proposed cannabis tax regime


Published 13-NOV-2017 14:06 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

Creso Pharma (ASX:CPH) has welcomed the weekend’s announcement from the Trudeau government in Canada, proposing a tax of C$1 per gram of legalised recreational marijuana. The announcement states that the tax should not exceed C$1 per gram, or 10 per cent of the producer’s price.

CPH has worked steadily to establish a strategic position in Canada, with the recent purchase of Mernova Medical in Nova Scotia.

The announcement from the Canadian government is yet further evidence of the country’s progressive stance on the legalisation of medical and recreational marijuana. Considering its status as world leader in this area, CPH could be set to benefit from the country’s fast-moving progress sooner rather than later.

The Canadian government sees the low level of tax as a way to quash the black market for recreational marijuana, and entice people to opt for government-controlled sources instead. The tax revenue from this initiative is projected to reach C$1 billion per year.

CPH’s recent purchase of Mernova Medical, in Nova Scotia, was a strategic move by the company on several fronts — including an increased scalability into the future. Construction has now commenced for the 20,000 square foot cannabis growing facility at the site which can be scaled up to a 200,000 square foot facility. The below photo indicates the capacity CPH will have to work with at the site.

Creso nova scotia

The purchase will see CPH become one of the few companies in the world, and the only medical cannabis company on the ASX, with 100 per cent ownership that includes the capacity to commercially cultivate and extract cannabis and hemp in the Canadian federally regulated environment.

Of course this is speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.

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.