Canada Investment Watchdog Has Warning Regarding Scams On Medical Marijuana

A marijuana plant is seen at Tweed Marijuana Inc in Smith

Investors interested to place investment in marijuana stocks should know that only 13 companies so far have been licensed by the Health Canada, a federal department, to cultivate marijuana and market it to patients who have a doctor’s prescription. “Investors should be aware that companies cannot legally conduct a medical marijuana business without a license from Health Canada, and that there is likely significant time and cost required to obtain such a license,” the CSA said in the statement.

Health Canada announced in May that it has received a total of 858 applications. However, out of the total number of applications, 370 were returned as incomplete, 149 were refused and 30 withdrawn. Section Grower Morgan Blenk inspects a marijuana plant clone before planting it at Tweed Marijuana Inc in Smith’s Falls, Ontario, March 19, 2014.

By unlocking the once-obscure medical marijuana market, Canada has created a fast-growing, profitable and federally regulated industry with a distinct appeal to the more daring global investor.

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