Millions of dollars worth of marijuana plants sat under lamps brighter than the noonday sun as employees of Canada’s largest cannabis business bustled about the 47 giant growing rooms of its factory, which once made Hershey bars.

Now it’s home to Tweed, whose parent company, Canopy Growth, was the first Canadian marijuana grower to debut on the New York Stock Exchange.

Valued at more than $10 billion, Canopy is worth even more than Bombardier, the Canadian manufacturer that is one of the world’s largest makers of planes and trains, offering a stark example of this nation’s new get-rich-quick hope — the marijuana industry.

As sales numbers start rolling in, cannabis companies will need to generate significant cash flows that are necessary to sustain their current stretched valuations.

Due to a surplus of licensed producers in Canada, it is possible the country may be flooded with supply of cannabis products a few years down the road.

This may drive down margins as companies lower prices in order to stay competitive.

The Canadian marijuana stocks we’ve weeded out today may be targeted for acquisitions as the larger players seek to broaden their brand portfolios.

If you’re looking to invest in cannabis, finding a stock with a lot of upside is going to be a challenge. On the TSX, stocks like Aurora Cannabis Inc (TSX:ACB) and Canopy Growth Corp offer a lot of growth potential, but they trade at very big multiples relative to their sales and might just be too expensive.

Trevor Fencott looks at the bare wooden beams in a stripped-down Edmonton retail store and sees nothing but possibility. He muses about cooking classes, perhaps lectures and community events in the barren space.

It's late June and Fencott has high hopes for this faded brick storefront on Whyte Avenue. He wants to turn it into the neighbourhood's oasis of weed.

Fencott is CEO of Fire and Flower, an aggressive entrant in the retail cannabis industry. His ambition is to shape the early pot-purchasing experience for Canadians and build a dominant brand, which can be expanded internationally as cannabis laws evolve throughout Europe and South America.

But the last part of that dream, the international expansion, will all depend on "getting Canada right," he says.

The manager of Cannabis House in Edmonton has no idea how many people will pass through the doors Wednesday, but he’s guessing it will be “pretty crazy.”

Schmitt’s store is one of 17 retailers across Alberta to secure an interim cannabis licence from Alberta Gaming, Liquor and Cannabis (AGLC).

Fire and Flower has three stores opening in the province Wednesday, all in the Edmonton area.

Nathan Mison, vice-president of stakeholder and government relations, said Fire and Flower developed a training program called Cannabis 101 to make sure employees are ready. Frontline sales staff called ‘cannistas’ (“We’re trying to start the new barista,” Mison explains) will have 90 hours of training under their belts when they hit the sales floor.

The cannabis hype is about to come face-to-face with reality.

After Canada legalizes recreational marijuana on Oct. 17, it will only take a quarter or two for clear winners and losers to emerge, according to investors and analysts who follow the sector. This means investors will have to get choosier as the days of highly correlated stock moves draw to a close.

“These have all been concept stocks and they’re going to actually have to be real companies in another few months, which I think a lot of guys are terrified about,” said Greg Taylor, who manages the Purpose Marijuana Opportunities Fund. Taylor prefers CannTrust Holdings Inc., Hexo Corp. and Organigram Holdings Inc., which he says trade at a “more realistic valuation” than some of their bigger peers.

Marijuana stocks rallied Monday after one of the largest Canadian cannabis companies announced that it has agreed to acquire a U.S.-based hemp company.

Canopy Growth told investors its purchase of Evergreen, Colorado-based ebbu will "complement and accelerate" its ambitions to expand into new types of consumer products.

At closing, Canopy Growth will pay 25 million Canadian dollars in cash and issue 6,221,210 common shares to the research company in exchange for the assets being acquired.

The sands of time are passing quickly. In a mere two days, adults in Canada will be free to legally purchase recreational cannabis in licensed dispensaries and on websites in provinces where online sales are permitted. Though legalization has been a long time coming, the expectation is that it'll result in billions of dollars in added annual sales.

A battle is brewing over how Premier Doug Ford's government will divvy up the private sector's share of Ontario's retail cannabis market.

Legislation that would allow companies to operate pot shops in Canada's largest province is now under scrutiny at Queen's Park and businesses are trying to influence key details of the bill. 

Once crucial aspect of the retail regime that's still to be decided: how many cannabis retail licences any one corporation can hold. Government officials say there will be a limit, but that limit has not yet been set. 

Many investors are taking a close look at marijuana stocks for the first time, given their big gains in recent months. Even though the cannabis industry has been gaining momentum gradually over the past several years, key events like the imminent legalization of recreational marijuana products in Canada have drawn attention to new facets of the market that most investors largely ignored previously.