When Cannabis Goes Corporate

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 Marijuana plants grow under artificial sunlight in one of the many climate-controlled rooms at Tweed Marijuana in Smiths Falls, Ontario. Tweed is one of about 20 companies that are licensed to grow medical marijuana in Canada. CreditDave Chan for The New York Times

The new owner of this factory, at 1 Hershey Drive, is Tweed Marijuana. It is one of about 20 companies officially licensed to grow medical marijuana inCanada.

A court ordered the government to make marijuana available for medicinal purposes in 2000, but the first system for doing so created havoc. The government sold directly to approved consumers, but individuals were also permitted to grow for their own purposes or to turn over their growing to small operations. The free-for-all approach prompted a flood of complaints from police and local governments.

So the Canadian government decided to create an extensive, heavily regulated system for growing and selling marijuana. The new rules allow users with prescriptions to buy only from one of the approved, large-scale, profit-seeking producers like Tweed, a move intended to shut down the thousands of informal growing operations scattered across the country.

The requirements, which went into effect in April, are giving rise to what many are betting will be a lucrative new industry of legitimate producers. The government, which will collect taxes on the sales, estimates that the business could generate more than 3.1 billion Canadian dollars a year in sales within the next decade.

Full Article:

http://www.nytimes.com/2014/05/25/business/international/when-cannabis-goes-corporate.html?_r=0

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