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Change in federal government could mean growth for medical marijuana industry

Last Updated Sep 13, 2015 at 9:25 am PDT

(iStock Photo)

Producers of medical marijuana are preparing for the possibility of a new federal government

TORONTO (NEWS 1130) – Medical marijuana producers are readying themselves for the possibility that Canadians could elect a new government this fall _ a move that could accelerate growth in the burgeoning industry.

Marijuana became a hot-button issue in the election campaign last week when Joy Davies, a Liberal candidate in BC, pulled out of the race after making some controversial posts about marijuana on Facebook.

Liberal Leader Justin Trudeau distanced himself from Davies when asked about her posts, which included claims that marijuana can cure skin cancer and a link to an academic study suggesting pot decreases domestic violence.

Jacob Securities analyst Khurram Malik says the election of either the Liberals or the NDP could lead to less red tape for licensed medical marijuana producers _ and even result in a recreational marijuana program such as the ones in Colorado and Washington state.

Malik says the introduction of a recreational marijuana program could also bring new players such as big tobacco and liquor companies into the market with an eye to snatching up marijuana producers once the companies become large enough.

However, Malik says a recreational marijuana program would take at least a year or two to implement.