There are currently 31 federally licensed medical cannabis producers in Canada under Health Canada's Marihuana for Medical Purposes Regulations (MMPR).

Canada has announced plans to legalize recreational cannabis in spring 2017. Before recreational cannabis is legalized, we expect to see consolidation within the industry.

Legalization Plans Make Capital Easier to Access

The government’s plan to legalize cannabis has made several licensed medical cannabis producers attractive investment opportunities to institutional investors, hedge funds, and investments, banks.

Licensed medical cannabis producers have raised more than $50 million so far this year and we expect this number to increase exponentially during the back half of the year.

This has made capital much easier to access, which has supported growth initiatives like land acquisitions, construction costs, license/company acquisitions, production capacity increases, etc.

Industry is Levered to a Large Pipeline of Event-Driven Catalysts

The number of investments like this have increased significantly this year...