It's being touted as the next new miracle ingredient for everything from pet treats to anti-aging face creams and elixirs that can help an athlete's aching body recover faster.

But that's not the only reason that cannabidiol or CBD, a compound derived from cannabis that doesn't get people stoned, is being eyed by companies of all stripes including beverage giant Coca-Cola.

Regulations and attitudes are warming up to it and the potential for CBD-infused products to be available on grocery or pharmacy shelves -- instead of in tightly-regulated pot shops -- in the not-so-distant future.

Including in Canada down the road, says Trina Fraser, an Ottawa-based lawyer who advises the cannabis industry.

Globally, the market for CBD could be "massive," she said.

‘BC Bud’ developed a reputation as some of the best quality cannabis on the planet long before the federal government under Justin Trudeau finally opened the door for legitimate industry to capitalize on that brand reputation.

No space has been hotter this past month than the marijuana sector, with pot stocks continuing to race up (and sometimes down) the charts in the lead-up to recreational cannabis becoming a reality across Canada.

And if you’ve been lucky enough to have placed some winning bets on stocks like Canopy Growth and Aurora Cannabis, now might be a good time to cash in your chips before the bubble bursts, says Lester Asset Management CEO Stephen Takacsy.

“The sector is so overvalued right now, it’s undescribable,” Takacsy told BNN Bloomberg . “You can’t justify these market valuations based on never mind today’s results but even forward results two, three, four, five, ten years down the road. There will be a lot of casualties.”

Even in America’s reddest states, favorable conditions for medical marijuana stocks could emerge soon. A permissive medical marijuana law received voter approval in Oklahoma earlier this year. Also, Republicans in Texas recently approved medical marijuana in their party platform. Cannabis’ days as a Schedule I drug are likely numbered. When this status changes, investing in medically-related marijuana stocks could reach a fever pitch in the fourth quarter and beyond.

When Canadian cannabis company Tilray Inc., announced last week it had received permission from the United States Drug Enforcement Agency to export cannabis to California for a medical study, it’s stock price started rising so quickly that trading was halted multiple times.

Tilray is one of the few cannabis companies publicly traded on the US Stock Exchange and it’s extremely difficult to legally bring cannabis into the United States, so the announcement set off a buying frenzy.

“This sounds like a big number,” Canopy Growth CEO Bruce Linton told shareholders, “but we already know how to spend it and are figuring out priorities.”

Constellation Brands, a U.S. beer, wine and liquor company, will now be able to bump up its ownership stake in Canopy from 8.5 per cent to 38 per cent. It also has the right to increase its equity position to 55 per cent.

It’s a potentially transformative deal both for Canopy and the marijuana products industry it is seeking to dominate — something that was reflected in the stock market bubble that popped up when Constellation Brands announced its investment on Aug. 15.

There are plenty of ways to make money from the marijuana boom. Tilray (NASDAQ:TLRY), for example, focuses primarily on producing marijuana for medical cannabis markets across the world and the soon-to-open recreational marijuana market in Canada. MedMen Enterprises (NASDAQOTH:MMNFF)specializes in the retail side of the marijuana industry as well as cannabis cultivation.

Amid the recent volatility in pot stocks, there is one group that appears to be capitalizing on the cannabis industry: the banks advising on a flourishing deal market for these companies.

About $582 million has been raised for cannabis companies through initial public offerings to date, while nearly $8 billion in mergers and acquisitions have been inked, according to data provided by Dealogic. An even greater number of deals have been done through less-traditional methods, such as reverse mergers and private placements.

Canada’s largest province is set to unveil a new law this week that will shape the future of cannabis legalization in Ontario, sources told MarketWatch on Tuesday, addressing the open question about how the substance will be sold in retail shops in the country’s most populous province.

Ontario has not yet created guidelines for how cannabis will be sold in brick-and-mortar retail shops, unlike the other Canadian provinces. The new law is set to define who can enter the market and where they will be allowed to sell cannabis in the country’s largest city, Toronto, and the rest of the region, according to people in Ontario who are familiar with the cannabis legislation.