They’re just saying, “Hey, this looks exciting, maybe we should change the name and add pharma to the end of our company name and find some people that know how to grow cannabis and let’s get into this business.” The hype reminds the former investment advisor of the froth when miners jumped into the tech industry before the dotcom bubble of the late 90s. And if the influx of mining players does create a pot bubble, the more serious players could also get hurt.
Ultimately, when the bubble bursts, it’s like a pendulum. It swings in the complete opposite and for a period of time no one wants to come near the industry. Swistak, of Cavan Ventures, sees the similarity to the dotcom days, but his memories of that bubble are more positive. He believes the mining companies that did jump in made their shareholders a lot of money.
“There’s a lot of people that are sort of negatively saying (medical marijuana) is a bubble, its jumping on the wagon, but I’m sure that’s what they said in the dotcom days, too,” he said. “The question that should be asked by those that are so negative looking is: Did that company actually do their shareholders a service because they made a bunch of money or did they do them a disservice because they entered into something they could?”
The Tweed Inc. medical marijuana facility is across the street from the Smiths Falls police detachment. The police have toured the plant and had one request: don’t put a giant marijuana leaf on the front of the building.