Ann: Filing statement ahead of MediPharm Labs listing, page-9

From the NZ herald, which poached it from Daily Telegraph ,,forget the video but the article is good ,,especially about the Wall Street Money to come.

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12131630

NZT

Unsurprisingly, the money-making potential of weed has caught the attention of investors. If you want to know what's going on, follow the money.

Cannabis-related stocks have been soaring, in what is starting to look like the early stages of a classic investment bubble. On one day last week the hottest stock in the sector, Canadian medical cannabis group Tilray, saw its share price double then lose all its gains before the trading session was out. Having floated at US$17 ($25.60) a share earlier this year on Nasdaq, it cleared $300 briefly and, despite its fall, remains a 10-bagger in just two months, at around US$175. This is reminiscent of last year's cryptocurrency bubble but to me it feels more like the dot.com boom of 20 years ago.

Last year, marijuana-related sales in the US were estimated at US$6 billion. By 2022 that is expected to be US$22b.

Like all investment bubbles, cannabis started out as a niche interest. But once it became clear that the direction of travel was towards widespread acceptance and likely legalisation, the mainstream began to latch on.

Legal pot represents a huge threat to established industries, so the most vulnerable are hedging their bets. Constellation Brands, which brews Corona beer, has made a US$4b investment in Canopy Growth, the largest Canadian grower and already a US$10b company. Coca-Cola is said to be considering a deal to market cannabis-infused drinks.

The next stage in any investment boom is when Wall Street sees its chance to cash in, developing the vehicles that enable widespread participation. There aren't many ETFs currently available but two, Horizons Marijuana Life Sciences ETF and ETFMG Alternative Harvest, are leading the charge. Unsurprisingly, given the immature nature of the sector, they are both invested in many of the same stocks, fuelling the surge in prices of what are very illiquid issues with tiny free-floats of available shares.