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Canada: Investments in medical marijuana are soaring

Financier Michael Gorenstein doesn't remember much about the two-hour drive from Toronto to Stayner, Ontario, last winter. He can recall only that the fields on the side of the highway were covered in snow and that the air was so cold he could see his breath when he stepped out of the car. He was a long way from his computer terminal in lower Manhattan.

But when he walked into the grow-op, he knew the trip had been worthwhile. He looked at the rows of cannabis trees, with their lush green leaves reaching up and out across the room, and knew where his future lay. As impressed with the facility as he was with the financial outlook for the licensed producer, Peace Naturals, he started on a path that would lead him to make a major investment, financial and otherwise, in Canada's medical marijuana industry.

"I'm really passionate about this industry. I'm willing to dive in, to live on a plane and spend weeks in the middle of nowhere. This is what I want to do," says Gorenstein. "You can make money in a hedge fund but, at the end of the day, you're just trading paper. With this, you're helping people."

He's not alone.

The industry in Canada is attracting investors eager to capitalize on the flourishing "green rush." Among them are Americans who see more opportunity north of the border than at home. The Canadian medical marijuana industry is valued at roughly $150 million – a figure worth about 200 million Canadian dollars – and may grow twentyfold in the next five years.

“I really do believe the eyes of the world are on Canada and (it) will be fascinating to see how this plays out,” says Brendan Kennedy, CEO of Seattle-based Privateer Holdings. “It’s entirely possible that some of the leading companies and brands in the industry 10 years down the road will be Canadian.”

Read more at US News
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