On June 21, 2018, Bill C-45, the Cannabis Act (the "Act")
was granted Royal Assent, resulting in the official passing of the
legislation for legalizing cannabis in Canada. The Act is expected
to be in force as of October 17, 2018.
The Canadian government's recent decision to legalize
recreational marijuana may significantly impact capital markets and
M&A deals. The decision to legalize recreational marijuana at
the federal level is unique to Canada, compared to other
jurisdictions like the U.S. where it remains illegal federally and
is currently regulated by states (such as Colorado, California and
Washington). While the state model in the U.S. has experienced some
early success, the prohibition at the federal level makes
operational realities (e.g., banking, transportation) more
difficult. Canada's legal framework may therefore open the
doors to greater foreign investment, particularly for those seeking
to gain a foothold in the sector without having to operate in
