Ten figure annual revenues, hundred thousand + square-foot growing operations, and millions of patients.
It is no secret that medical marijuana’s potential is HUGE. With that being said, we are all left wondering how things will develop over time. Maybe Tweed offers a glimpse into our future.
“Tweed made headlines in late September when it occupied the former Hershey chocolate factory and announced its intention to use over 168,000 square feet to grow medical marijuana. The granting of a license follows recent news that Tweed has taken the first steps to becoming a publicly traded company on the TSX Venture exchange.” – MarketWatch
Apparently Tweed will be the first Canadian marijuana producer to have a public listing on a Canadian stock exchange. Oh the benefits of having a medical marijuana industry that is federally legal.
Ottawa Citizen – “Health Canada estimates the medicinal pot business will generate revenues of $1.3 billion annually within 10 years, but this is based on a twelve-fold increase in the number of users from the current base of less than 40,000. It’s not clear what would justify such a jump.”
Currently Canadian citizens are permitted to grow marijuana in their homes. Starting April 1 this will be outlawed and citizens will be required to purchase this medicine from a licensed grower/dispensary.
Tweed, which has a license to produce up to 15,000 kilograms of marijuana annually, already has about 10,000 plants under cultivation.
Rifici said the products will be sold in April at prices ranging from $5 to $12 per gram, depending on the strain. (Mettrum began selling two strains of its weed earlier this month for $7.60 per gram). Tweed is committing at least 10 per cent of its production for sale at the lowest regular price.
In addition, low-income patients will get a 20 per cent discount.
Tweed is expecting a future annual revenue of 100 million.
Rifici said Tweed will be accepting patients early in February. The rules require patients to obtain a medical certificate from their doctor — a document that specifies how much marijuana should be taken each day. The next step involves forwarding a copy of the medical certificate to Tweed or other approved supplier. Patients will be given a secure ID that can be used to buy weed online or by phone. Suppliers will then courier the product to patients’ homes.
Bloomberg – The Canadian government’s backing of marijuana production means investors can count on more stable returns than in the U.S., where some states such as Colorado allow retail sales while federal rules make banking transactions difficult, Linton said.
“You run my type of business in the U.S. and you get bags of cash every day because you can’t use credit cards or couriers,” he said. “Even who you have as investment bankers gets complicated because it’s federally prohibited.”
All of this sounds great but how are the residents of Smiths Falls reacting to 168,000 square feet of marijuana being grown in their backyard?
“I’ve had nothing but positive comments.”- Smiths Falls Mayor Dennis Staples
The stars seem to be aligning for the Canadian medical marijuana industry. We can only hope that the United States Federal Government ends the flip-flopping and follows suit, granting citizens safe and easy access to their medicine. – D
Also See: Marijuana Stocks are Booming: Be Wary