Following Uruguay’s lead, Canada recently became the second country in the world to federally legalize adult-use cannabis. This measure will allow the country to capitalize on substantial economic opportunities, propelling it towards becoming the cannabis capital of the world. Meanwhile, just south, the United States struggles to find a balance between federal and state policies. Global spending on legal cannabis is expected to reach $63.5 billion by 2024 which will almost exclusively flow to Canada. This means the U.S. is leaving copious amounts of cash on the table until the day federal legislation classifies cannabis as a Schedule 1 drug.
Before the legalization of cannabis in Canada, anticipation alone created a financial boom not seen since the dot-com mania of the late 1990s. Canadian investors began plowing millions of dollars into cannabis companies, without having recording profits yet. And they are not alone, American companies are also jumping on the bandwagon. There is a new wave of American companies becoming publicly listed in Canada for valuations approaching those of their Canadian counterparts. The only chance the U.S. has is to slow and ultimately stop this trend is the legalization is adult-use cannabis.
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