A Canadian medical marijuana company is poised to take off, amid the prospects of legalization and the resulting positive impact on cannabis stocks.
Invictus MD has begun paying dividends to shareholders, the first medical cannabis company to do so—and the industry’s demand for space to grow their wares might lead to a renewed phase of frantic property purchases.
“They’ve been nurturing their shareholders along with their crops. Invictus MD’s focus on two verticals—cannabis cultivation and cannabis fertilizer and nutrients—gives it a competitive, low-cost advantage on this playing field,” according to a recent Baystreet analysis.
“Now they’ve got prime real estate to add to their portfolio, and this is one cash crop that’s going to keep growing.”
Marijuana also enjoys a unique advantage that puts it ahead of other Canadian industries.
“There’s no province-by-province uncertainty in Canada—medical marijuana is federally legal, and in mid-April, the government is planning to put through its bill to legalize recreational use by next summer, so the urgency for investors is mounting,” the analysis explained. “Some of the biggest marijuana stocks in the U.S. have seen 1,000 percent gains over the past couple of years, and now it is Canada’s turn — where no one’s even looking.”
At present, around 130,000 Canadians are prescribed with medical marijuana. Far outweighing the combined sales of all liquor types in Canada, the cannabis industry has been estimated by Deloitte to be worth upwards of $22.6 billion annually.
Earlier this year, Canada’s leading multi-tenant industrial REIT indicated that it will be adding the medical marijuana industry to its list to ftenants.
“At the beginning, we shied away from it but more and more it’s becoming mainstream,” Pure Industrial Real Estate Trust CEO Kevan Gorrie said.
“We would treat them as any other tenant that would require a lot of due diligence.”
Industrial REIT eyeing marijuana as a powerhouse sector