Mackie Research Projects $1.1 billion Canadian Medical Cannabis Market by 2020

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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:
mackie research canada cannabis projections

Download the report: As High As The Rockies – The Canadian Marijuana Opportunity

The opinions, estimates and projections contained in all Research Reports published by Mackie Research Capital Corporation (“MRCC”) are those of MRCC as of the date of publication and are subject to change without notice. MRCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; MRCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to MRCC that is not contained therein. Research Reports disseminated by MRCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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