Investors appeared unfazed by the Canadian government, on June 20, saying that legal cannabis sales can start October 17, instead of “by summer,” which Prime Minister Justin Trudeau had previously promised.
Royal assent for the Cannabis Act is set for 6:30 a.m. Pacific time on June 21, the first day of summer, and government had told industry insiders that legal sales would be able to start eight to 12 weeks later.
October 17 is 17 weeks away.
Trudeau announced the October 17 date during question period in the House of Commons late morning Pacific time. Shares of the Horizons Marijuana exchange traded fund HMMJ, which tracks the cannabis sector and trades on the Toronto Stock Exchange, continued a steady rise into the close of trading, when it was up more than 3.4% on the day.
“Everybody can use a bit of extra time, including people who are currently growing and processing cannabis,” said Vancouver-based Deepak Anand, vice-president of business development and government relations at Cannabis Compliance Inc.
“There is quite a relief out there that we know what the date is.”
Trudeau in a press conference after markets closed on June 20 said that it was representatives from provinces and territories who had asked for “more time.”
He said that the extra time would ensure a successful rollout and that government will snag market share from organized crime.
“We are confident that, at the beginning, we’re going to take a significant part of the market share right now occupied almost entirely by organized crime away, and, over the following months, and indeed years, we will completely replace, or almost completely replace the organized crime market,” said Trudeau.
“It is our hope that, as of October 17, there will be a smooth operation of retail cannabis outlets operated by the provinces with an online mail delivery system operated by the provinces.”
