Where we are with marijuana insurance

Canadian firms are spending big – and expert believes “this is a market you want to be looking at”

Where we are with marijuana insurance

Insurance News

By Will Koblensky

Out of the 27 publicly listed marijuana companies in Canada, 17 have seen their stocks consistently rise since January 1, 2017.

It’s indicative of a market that’s both heating up and maturing, as some players get left behind.

Learn more about marijuana insurance here.

On Monday, the Canadian Bioceutical Corporation, which describes itself as “one of the few Canadian cannabis companies that is making an actual profit,” announced it was trading on the Canadian Securities Exchange as BCC.

BCC, though Canadian, mostly owns operations in the US including Nevada-based, natural heath product-developer, CGX Life Sciences.

The subsidiary and its parent company additionally announced its acquisition of two dispensaries in Phoenix and a cannabis extract brand.

The CEO of BCC, Scott Boyes, said he believed the transaction made his company the most profitable publicly listed marijuana firm in Canada.

Anything involving cannabis involves the law, making marijuana lawyers hugely important during the regulatory transition period North America finds itself in.

America’s biggest cannabis law firm, Vicente Sederberg has many Canadian clients, though Brian Vicente said most of the Canadians he works with are investing south of the border.

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Dispensaries getting raided have legal recourse, Vicente said, but only if charges are actually laid.

“Motel smash and grabs” where police seize products and cash without laying any charges is how Vicente refers to most of the raids.

Vicente described the Trudeau government as “friendly” to his line of business and had advice for insurance professionals anticipating the impending legalization.

“We’re on the precipice of something big, this is certainly a market you want to be taking a look at,” Vicente said.

“It looks like it may play out differently region by region, it makes sense to take a look at America’s playbook about this, to see how different states have regulated this product.”

He also mentioned looking at crop coverage and “transposing what they’ve worked with in other spheres” to marijuana.

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