Medical Marijuana Industry Shifts Gears To Woo Scarce Investors

CANADA:  The free-for-all era of Canada’s commercial medical marijuana industry is over as a new crop of growers try to woo scarce investment dollars in an increasingly competitive business, observers say.

Boris Ziger, CEO of Matica Enterprises Inc., said the short-lived days of unbridled growth ended soon after last year’s change in federal regulations that shifted medical-marijuana production to commercial enterprises from patients growing their own pot.

He said the stock market went “absolutely crazy” in the spring of 2014 as various companies began branding themselves as pot producers in hopes of cashing in on what was really “irrational exuberance you hear about in business school.”

“It’s become much less Wild West-y,” said Ziger, of the Toronto-based investment firm that has sunk millions of dollars into aspiring medical marijuana producer THC Dispensaries Canada Ltd., in Nova Scotia.