As we draw closer to the day when marijuana becomes legal in Canada, many potential cannabis connoisseurs are looking to Niagara for an investment opportunity.
Commercial cannabis is going to become a bigger part of the Niagara Region’s economy in the upcoming years once legalization is complete. As a result, a variety of organizations and institutions are already starting to zero in on the Niagara cannabis industry, as the region is already home to cultivated land and a few medicinal cannabis facilities. As a result, the Niagara commercial cannabis industry is set to contribute a significant amount of growth to the region.
This year, Niagara College will be the first post-secondary institution in Canada to launch a commercial cannabis production program.
A Potentially Potent Investment
It’s been predicted that the commercial cannabis industry is going to reach upwards of $22 billion in the country, with outside investors looking to Canada for a profitable business opportunity.
For instance, American company Constellation Brands, the company that produces Corona beer, has purchased a 10% stake in Canadian cannabis company Canopy Growth Corporation for over $240 million.
Even some Canadian banks are looking into their options, as policies regarding marijuana are shifting in the legal context. Niagara's commercial cannabis industry is a reflection of those new policies and the opportunities they have created.
The Fine Print
While many foreign investors are becoming interested in getting their hands on a piece of the cannabis pie, there is a lot of fine print that many don’t consider.
Firstly, permits for marijuana producers are hard to come by and it’s a complicated process to get the license. In fact, experts have said it could take more than a year to complete. It begins with filling out the application, going through screening, and clearing background checks.
Then, you have to obtain property and greenhouses to grow plants. For your cannabis production property, you will need a zoning permit and your operation will be inspected as you begin cultivation.
It is after this step that you will potentially receive the license. However, only 43 of the 1,630 applicants have been approved by Health Canada - that means only about 2.6% of applicants get through.
Interested Investors Must be Aware
While the cannabis licensing process might seem overly strict, it is important to remember that this is a new concept for Canada, and for the time being the government is offering preference to those who are extremely qualified.
If you are interested in purchasing a cannabis production property, talk to a commercial real estate agent or appraiser who can answer all of your questions. Make sure you have everything covered before you start the process in order to avoid any headaches or mistakes.
