Mar 29, 2021 (Baystreet.ca via COMTEX) -- USA News Group – The drumbeat towards cannabis legalization is growing louder, as US lawmakers early in 2021 are signalling increasing openness to the market. In early February, multiple US Senators issued a joint statement announcing that marijuana reform bills would be merged as Congress moves toward some form of federal cannabis legalization. By mid-March, cannabis stocks surged after New York’s Governor said his state was ‘very close’ on legalization. So far the momentum has impacted the share prices of several cannabis stocks of all sizes, including MYM Nutraceuticals Inc. /zigman2/quotes/202079336/composite MYMMF +0.95% /zigman2/quotes/205115866/delayed CA:MYM +4.55% , OrganiGram Holdings Inc. /zigman2/quotes/209289540/composite OGI -0.41% CA:OGI -0.44% , Cronos Group Inc. /zigman2/quotes/206842762/composite CRON +1.60% /zigman2/quotes/202715342/delayed CA:CRON +1.03% , HEXO Corp. /zigman2/quotes/206508254/composite HEXO +3.94% /zigman2/quotes/200008967/delayed CA:HEXO +4.08% , and Canopy Growth Corporation /zigman2/quotes/200603886/composite CGC +3.57% /zigman2/quotes/202205609/delayed CA:WEED +3.12% .
North of the border into Canada, MYM Nutraceuticals Inc. /zigman2/quotes/202079336/composite MYMMF +0.95% /zigman2/quotes/205115866/delayed CA:MYM +4.55% has moved within one province of having nation-wide distribution across the country that legalized cannabis in October 2018.
Back in February, the cultivator, processor and distributor secured a supply agreement through its wholly-owned subsidiary Highland Growth Inc. with the Ontario Cannabis store, marking official entry into Canada’s largest pot market.
"Entering the Ontario market is another key milestone for our Company," said Michael Wiener, CEO of MYM. "It is the largest and fastest growing market in Canada, and we are excited to finally be able to offer our craft, high THC cannabis to the many discerning consumers in the province."
Now after the recent additions of Ontario and the territory of Nunavut, Highland Grow products are now available in all Canadian provinces and territories, except for Quebec. However, MYM’s other wholly-owned subsidiary, SublimeCulture Inc. is located and cultivates products from a state-of-the-art facility in Laval, Quebec.
"We've come a long way at MYM, and we are building incredible momentum," said Michael Wiener. "In the past week, we've announced the expansion of our distribution network into two new markets and, even before entering these markets, released profitable Q2 financial results in the midst of a global pandemic. [We] are well positioned to continue to build upon and accelerate our growth."
Established cultivators of premium cannabis in Canada like MYM Nutraceuticals Inc. /zigman2/quotes/202079336/composite MYMMF +0.95% /zigman2/quotes/205115866/delayed CA:MYM +4.55% are being sought after by larger partners foreseeing entry into the lucrative US market to the south.
“As global cannabis deregulation gains pace, led by the US, we have been approached by an increasing number of Big Tobacco, Big Pharma and leading FMCG companies, looking to invest in the Cannabis sector,” said Tristan Gervais, Chrystal Capital’s Head of Cannabis advisory at Europe’s Cannabis Merchant Bank to CNBC.
The latest major partnership deal saw British American Tobacco pay approximately $175.81 million for a nearly 20% stake in Canada-based cannabis producer OrganiGram Holdings Inc. /zigman2/quotes/209289540/composite OGI -0.41% CA:OGI -0.44% .
“Organigram has a proven track record of consumer-led innovation and developing high quality adult-use recreational and medical cannabis products, which are legally available in Canada,” BAT said in a statement.
OrganiGram wasn’t the first cannabis cultivator to sign a deal with a tobacco giant.
Back in 2018, Altria Group (makers of Marlboro cigarettes) bought a 45% stake in Canadian cannabis producers, Cronos Group Inc. /zigman2/quotes/206842762/composite CRON +1.60% /zigman2/quotes/202715342/delayed CA:CRON +1.03% for $2.4 billion.