Those aiming to capitalize on cannabis have learned that looking abroad can be a lucrative alternative to investing in companies focused on the United States, where cannabis remains federally illegal. The best example, of course, is Canada, which has seen incredible gains in the stocks of its licensed medical marijuana producers over the past 2 ½ years, as the country has moved towards full adult-use legalization.
With its market dynamics similar to where Canada was just a few years ago, Australia is emerging as another top choice among speculative investors.
Medical on the Rise
Australia, which has a population of about 24 million, does not yet have a robust medical program. In early 2016, its legislature passed the Narcotic Drugs Amendment Act, which allowed for the creation of a licensing and permit scheme allowing both regulated cultivation of cannabis plants and the production of cannabis