Mackie Research Capital Corporation (MRCC), one of Canada’s largest independent full service investment firms with roots back to 1921, has issued its premier report on the Canadian cannabis market. The report’s authors include Dr. Andre Uddin, Ph.D, the firm’s Managing Director, Healthcare Research, and Neal Gilmer, Analyst, Special Situations and Healthcare. Gilmer was previously covering the industry for Clarus Securities.
MRCC’s 35-page report “Canadian Medical Marijuana Industry – As High as the Rockies” provides extensive background information and lays out a bullish thesis for the Canadian MMPR program. The company estimates that the program could have over 500K patients by 2020, which is a larger number than Health Canada’s forecast for 2024 shared in 2013. MRCC makes assumptions about consumption, pricing and the preference for dried cannabis relative to oils to arrive at a forecast of over C$1.1 billion in 2020 assuming a price of C$7.50 per gram for dried flower and an initial C$2.60 per ml for extracts.
The analysts also contemplate full legalization. The report includes four pricing scenarios and accounts for the timing of potential legalization. In the most bullish case, MRCC estimates that 2020 total cannabis sales in Canada could exceed $2.8 billion. The scenarios below assume dried cannabis sells for C$7.50 per gram:
Download the report: As High As The Rockies – The Canadian Marijuana Opportunity
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