Since the introduction of Bill C-45 to legalize the production,
distribution and sale of cannabis for recreational use, the
cannabis sector (the Sector) has been thriving.
Despite many unknowns and uncertainties surrounding the Sector,
investors appear unfazed as share prices continue to surge.
Some key features of the Sector
Even though Bill C-45 has not yet passed and has been the
subject of some controversy, investor reticence appears to be at a
minimum. However, mirroring the volatility of the cannabis market
itself, the nature of these investors has changed. Whereas in the
nascent stages of the Sector investors could generally be
categorized as retail, advisory firm Kingsdale Advisors (Kingsdale)
observes that investors of larger cannabis companies are becoming
increasingly institutional. Kingsdale attributes this shift to
forthcoming legislation, companies' need for capital and their
increased market cap and indexing. As investors increasingly change
from
