Canada Leads the Global Cannabis Paradigm Shift Initiating Aphria and Canopy at Outperform May 2018 Tamy Chen, CFA Peter Sklar, CPA, CA Cannabis Analyst Retailing/Consumer Analyst BMO Nesbitt Burns Inc. BMO Nesbitt Burns Inc. (416) 359-5501 (416) 359-5188
[email protected] [email protected] This report is intended for Canadian & EU distribution only. Unauthorized reproduction, transmission or publication without the prior written consent of BMO Capital Markets is strictly prohibited. This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including Analyst’s Certification, please refer to pages 50 to 53. 16:00 ET~ Table of Contents Initiating BMO Cannabis Coverage ................................................................................................................... 2 Executive Summary .......................................................................................................................................... 4 Legal Environment Favours Canadian LPs ........................................................................................................ 6 Initial Recreational Market Outlook ................................................................................................................. 7 Current Medical Market in Canada: Opaque .................................................................................................. 13 Near-Term International Medical Opportunity: