As Canada ramps up for cannabis legalization later this year, pot stock investors up north are primed to profit from the influx of consumers spending their disposable income and helping the industry to increase its shares. Yet, the market, as of late has become a volatile mess, and shareholders and industry insiders should be bracing for disappointment rather than out and out success.
Here are three reasons why the Canadian cannabis market is less than a safe bet for investors:
Conservative Senators Continue To Delay
Chaos once again struck Canada’s cannabis legalization efforts in March when a proposed study researching drug-impaired driving laws was pushed back for two months, leading conservative legislators to call for prohibition repeal to be delayed until the end of the year. “There is a weak spot in the government’s plans, which is that the government would legalize a drug before it has fully confirmed the new powers that are given to police to control the situation,” Conservative Senator Pierre-Hugues Boisvenu, as reported by The Globe and Mail.
During the original debate over marijuana legalization, Canadian legislators vowed to enact stricter driving laws due to a perceived increase in impaired drivers. Bill C-46, a companion to the original pot legalization law, Bill C-45 developed new driving offenses for impaired drivers.
While the bills garnered the necessary votes in the House of Commons, they continue to meet with resistance in the Senate, according to The Globe and Mail. Floating around since at least November, Bill C-46 was put on hold until spring in lieu of a review of the criminal code associated with the primary legalization bill.
Marijuana legalization continues to meet resistance from the Conservative party in Canada, despite overwhelming public support for the bill. While the delays and setbacks put a damper on the general mood,