No. of Recommendations: 2
First, Bill C-45 is a Canadian bill. I cannot speak to Canadian cannabis companies. All I can talk about is the sector prospects in the USA. You'll have to decide whether there's enough market in Canada to make for a successful investment without the opportunity to penetrate south of the border into an American market.

Marijuana remains illegal at the federal level in the USA, and as such, any business dealing in the area of cannabis production would have to operate on an intrastate basis as crossing state lines would make it difficult for federal authorities turn a blind eye as they have so far in states where it is legal. For that matter, while medical marijuana is legal to some degree in a number of states, recreational use remains illegal most all states, further limiting the customer base.

On top of that, financial institutions face criminal entanglements should they provide any form of banking services to marijuana-dealing companies, whether it be payment processing, checking and payroll services or credit and lending services. In fact, they could face forfeiture of assets. So understandably, companies dealing in marijuana production and distribution do so without the financial support of the regulated financial industry. This necessarily cuts them off from the resources most companies need and utilize to grow and expand their businesses.

Investing in such companies, until federal law catches up to state law and companies are able to produce the kind of investment gains that would be worthy of a portfolio, remains highly risky and speculative. And the current administration has already indicated it will not continue the previous administration’s “blind eye” policy.

Who would not touch this market as an investment until there is a demonstrable and proven path for sustained growth and profitability...

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