We have seen a number of critics confuse our investment in medicinal cannabis with recreational cannabis. The two are very separate. There’s also uncertainty about the role of New Zealand’s referendum in September this year.
Cannabis consists of a number of chemical compounds (called cannabinoids), the most widely researched being THC (tetrahydrocannabinol) and CBD (cannabidiol). CBD is a non-psychoactive compound that is shown to be effective for a range of medical conditions. THC is a psychoactive compound that can induce a “high”, and for medicinal purposes is potentially better than CBD at treating a range of neurological conditions.
Our focus at CareSaver is medicinal cannabis, which already has its own legal framework in New Zealand, administered by the Medicinal Cannabis Agency (part of the Ministry of Health). This was introduced because of wide acceptance that medicinal cannabis is an effective natural alternative to some conventional medicines. It is regarded as having potential to help with a range of symptoms and illnesses including the treatment of pain, anxiety and sleep disorders.
Medicinal cannabis is part of the healthcare industry and is already legal in 40+ countries and 33 US states. Recreational use in New Zealand is currently illegal.
The referendum alongside this year’s general election is the result of the coalition agreement between Labour and the Greens. The referendum question is: “Do you support the proposed Cannabis Legalisation and Control Bill?” Do some reading if you want to understand what this covers in terms of proposed recreational use. What is very clear is that the referendum does not cover medicinal cannabis, hemp, driving while impaired, or workplace health and safety issues. Each of these, including medicinal cannabis, is covered by existing laws.
Many people are familiar with Cannasouth Limited – the one New Zealand listed medicinal cannabis company. It has a market capitalisation (total value of its listed shares) of $60 million and it’s share price has risen by an astonishing 38% over the last year.
Rua is a private, not stock exchange listed, company. It is a leader in a new sector and presents long-term investment potential. And it fits our policy to invest ethically.
We expect the global market to grow very rapidly over the next few years, particularly for the production of the raw materials needed in the retail products. This offers a significant export opportunity for New Zealand based medicinal cannabis companies like Rua. Some countries have lower standards for production and sale quality (such as the USA and Canada), while others have very high standards (like Germany). These ‘high standard’ countries present significant entry barriers, meaning strong pricing and fewer competing products – these countries are high-value export markets.
So to our critics, check the difference between medical and recreational cannabis. Understand what you are voting for or against in the referendum. CareSaver is here to make money ethically for our investors – and we see Rua as helping us achieve that. And the good news is it is easy to switch to us – just hit the button below.