By Mike Murphy
As Canada prepares to legalize recreational marijuana, licensed pot companies north of the border are booming. But critics warn overly optimistic projections and a potential weed glut are making valuations way too high.
The pot bubble threatens Canada’s plan to become the Silicon Valley of recreational pot, according to this week’s cover story by Barron’s, with the country’s five largest publicly traded marijuana companies each valued at over C$1 billion.
Marijuana backers envision the industry eventually rivalling alcoholic beverages. Constellation Brands , which owns such brands as Corona beer and Robert Mondavi wine, estimates cannabis products could rake in $200 billion in global sales within 15 years, and one pot-industry bull sees Canada’s marijuana retail sales reaching C$9 billion annually within a few years, Barron’s reported.
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