TORONTO – Canadian securities regulators are cautioning investors looking for a quick high to be cautious when investing in medical marijuana stocks.
The Canadian Securities Administrators says a significant number of companies have announced plans to begin growing and selling medical marijuana.
And in many cases the securities regulator says, just the announcement of those plans have driven share prices higher.
The CSA says investors need to be aware that companies cannot legally grow and sell medical marijuana without a licence from Health Canada and that takes significant time and cost to obtain.
New regulations regarding medical marijuana were enacted by the federal government April 1. The move opened production up to the commercial sector.
As of late last month, the department had received more than 850 applications from companies wanting to be medical marijuana suppliers.