close
Legal

Legalization in Canada, the record before the hour

Balance sheet in Canada, 48h before the legalization of cannabis for recreational purposes

The Canada, the country that now leads the medical cannabis industry, will officially become the global cannabis powerhouse, when legalization laws take effect in two days. We estimate the provisional balance sheet, the country up to 30 billion per year in taxes. Furthermore Facebook just lifted restrictions on cannabis. In Canada, a new El Dorado presents itself for all pot traders. However, the Canadian Securities and Exchange Commission is now warning investors in the stock market against new actions on cannabis.

legalization, facebook, balance sheet, Canada

Legalization in Canada, the record ahead of its time

The new legalization law in Canada will come into effect next Wednesday. This country is the second country in the world to allow a legal cannabis market. And this, for leisure purposes. It is also the first to do so among members of the G7.

Canada already leads the thriving global medical cannabis market. But now it will become a true cannabis empire. Especially when it develops the free market allowing self-use, national growth and legal trade.

The new law comes almost after Canada has removed cannabis from 1923 law. Canada is also the first country in the world to skip the decriminalization phase and is moving from a total ban, albeit very liberal, to full legalization.

legalization, facebook, balance sheet, Canada
He opposes incrimination and becomes a staunch supporter of legalization: Justin Trudeau, Canadian Prime Minister

The movement led by Prime Minister Justin Trudeau once said during the election campaign that this would help advance the issue.

“Decriminalization will not protect young people and attract money from criminal organizations, unlike legalization,” he said.

According to him, incrimination is a failed policy which reinforces the criminal world, and diverts profits towards the black market. The best way to keep cannabis out of the reach of young people is to legalize the market and invest the profits in education and research.

Clarifications on the legalization

Under the new law, legal cannabis will be sold under a tax of 1 Canadian dollar per gram of cannabis for sale, for a maximum of 10 g. Sales exceeding 10 grams will only be met 10%. The state will leave a quarter of its share and return the rest to each of the country's provinces. This is so that the tax breaks go to residents.

legalization, facebook, balance sheet, Canada

Cannabis Act in Canada: Basically, the public will be allowed up to a possession of 30 grams, and up to 4 plants for a local culture. On the other hand, the provinces are required to formulate a detailed policy on the implementation of legalization. But not all provinces are required to apply it. For example, the legal age will vary from province to province: in Alberta, a sale will be available from the age of 18, but Quebec will only allow it from the age of 21 years.

Some provinces, like Alberta, intend to put the cannabis market in the hands of a provincial monopoly, while others, like Nova Scotia, will allow a single government corporation. Ontario, for example, has launched an ordering site that will be the only legal channel for the first six months, until other companies are licensed.

to read :  The Green Denominator

The principles of the new law on legalization in Canada:

  • Authorize the use of cannabis for 18 years and over
  • Possession of up to 30 grams of cannabis in public
  • Allow the cultivation of 4 seedlings (plants) at home
  • Open legal cannabis shops (without alcohol sales and away from schools)
  • Permission to post cannabis
  • Preserve the existing medical cannabis program (home and stores)
  • We calculate the tax rate compared to the amount of THC tax (a 'strong' product will cost more)
  • Strict compliance with advertising restrictions for cannabis products
  • Tax revenues will be allocated to education and research budgets

Canada takes a unique approach to legalization, the first of its kind and a remarkable organization, and therefore attracts the attention of countries and leaders around the world. In addition, Canada is becoming a model for the future. On Wednesday, 109 stores will sell buds, oils and seeds. Edible products, cannabis-based products intended for human consumption, will not be authorized for sale until next year.

legalization, facebook, balance sheet, Canada
Canadians will be allowed up to a possession of 30 grams

A surprise to Canadian residents is even Facebook, which has blocked any possibility of searching for the word "cannabis" on its social network. Thus, FB removed the block and allowed it only to residents of Canada.

Facebook finally lifts its ban

Facebook Inc. will lift its effective moratorium on cannabis, their decision comes just days before legalization. The group bans its users who sell pot on their platform. This in violation of its terms of use.

legalization, facebook, balance sheet, Canada
The global Facebook community will now be able to locate cannabis-related pages using the search function.

Facebook attributes the ban to its users who sell pot on their platform. This in violation of its terms of use. Facebook spokesperson Sarah Pollack explains via email to Forbes:

“This is a change in our tactics when it comes to what can be discovered using Facebook Search. Our community standards make it clear that buying, selling or trading non-medical drugs, pharmaceuticals, or cannabis is not allowed on Facebook. " 

 We also seek to ensure that content that does not violate our policies can be discovered by Facebook Search. Facebook uses a combination of the latest technology in search ranking. And our team of reviewers are working 24 hours a day, 24 days a week. This is to minimize the possibility of illicit drug sales. We are constantly checking and improving this process in order to do better. "

The social media site will verify businesses by asking for their phone number, which Facebook will then verify by providing them with a four-digit code that the business, in turn, will need to verify. This automated verification method is similar to how Google authenticates app downloads to users' mobile phones.

Facebook group policy change

Before Facebook's latest pot policy change, followers weren't even able to look for groups that didn't sell cannabis, like the nonprofit advocacy group NORML.

“Facebook's policy change reflects the reality that cannabis is already legal in nine states, Washington DC and soon in Canada. I realize that it is difficult for some of these companies to adapt to the new reality. Facebook lives what all institutions experience. The transition from the days when cannabis use was a crime to that of a legitimate business. This is no longer cold frenzy, ”said lawyer Keith Stroup, founder of NORML.

Facebook's deletion of cannabis pages has long been a source of consternation for its users. Many have been subjected to deletion of their page without summation ... In an attempt to circumvent the deletion, many companies have been forced to re-image their pages. Including language to reflect health and well-being, rather than cannabis itself. Perhaps now that Facebook has decided to abandon its restrictive stance on cannabis, other social media giants will follow.

to read :  Himachal Pradesh plans to allow cultivation of medical cannabis

Warning against the stock market

However, a few days before the new law came into effect, the Canadian Securities Authority (CSA) issued an official announcement for investors, clarifying and warning against any illegal activity in Cannabis shares. on the stock market.

legalization, facebook, balance sheet, Canada
Most recent data on investment activity and mergers and acquisitions in the cannabis industry.

The PDF reportISA is responsible for the smooth functioning of the capital market. It focuses mainly on the unreliability of some reports submitted by managers to the stock market.

The announcement comes at the end of a review by Canadian authorities into the conduct of Canadian and US companies. Those who have traded on the various exchanges concerning cannabis. According to the report, some of the companies did not properly comply with the procedures. By emphasizing inaccuracies in forecast reports and lack of disclosure of financial data. Louis Morisset, President of the Canadian Securities Authority, said:

"Given the growing interest in the cannabis industry, it is very important that investors receive transparent information about the economic activity of the targeted investor."

He adds that “the quality of information disclosure in this area must be improved. "

In the report itself, the CSA explains in detail how companies should present their economic and agricultural data. And how to measure production capacities and how to correctly predict what will happen. Because obviously, “some cannabis dealers issue press releases. They create baseless hype and present false promises to investors. "

The new legalization law will come into force in Canada in 48 hours, this will allow the opening of thousands of cannabis companies across the country ...

The black market at half mast

Le Journal de Montréal reports that black market prices for cannabis are falling sharply. From Montreal to Quebec, many consumers are reporting declining figures, varying between $ 3 and $ 5 per gram. We can find for 14 g, prices descending to -20 $ ... According to police sources, the prices have fallen sharply in the street in recent months.

legalization, facebook, balance sheet, Canada

Unsurprisingly, the situation is far from surprising the economist and professor of management at Laval University, James Eaves, who had predicted a reduction in tariffs.

"Organized crime people are also business people. They do not want to lose their clientele. They are lowering their prices and they will continue to do so as production explodes, "he says.

According to him, the price of cannabis has fallen by 50% in Colorado since 2015, and 40% in Oregon. But in Ottawa, it is estimated that the illegal market in Canada will take at least 4 years to be completely absent. For now in Quebec, we estimate a collapse of the black market at -30%, just for the first year of legalization.

Tags : BusinessCanadaLawPolicy
Weed-master

The author Weed-master

Weed media broadcaster and communications manager specializing in legal cannabis. Do you know what they say? knowledge is power. Understand the science behind cannabis medicine, while staying up to date with the latest health related research, treatments and products. Stay up to date with the latest news and ideas on legalization, laws, political movements. Discover tips, tricks and how-to guides from the most seasoned growers on the planet as well as the latest research and findings from the scientific community on the medical qualities of cannabis.