The Handbook of Board Governance, 2nd Edition

55Cannabis Governance: Advice for Current and Prospective Directors in This Emerging Industry

Steve Chan

Vice President Corporate Affairs and Corporate Secretary at The Supreme Cannabis Company

Introduction

We are seeing what I believe is the end of global prohibition around cannabis consumption, with more and more countries around the world legalizing cannabis in some shape or form. This has resulted in a “green rush” to capitalize on a global opportunity that is estimated to currently be US$10–12 billion and expected to grow ∼10× to US$100–140 billion by 2029.

For many, this space presents a once-in-a-lifetime opportunity given the potential size and reach of the market. Cannabis is commonly associated with the recreational consumer acting as a social lubricant. At the same time, the potential wellness and medical opportunities of cannabis (including anxiety, anti-inflammation, weight loss treatment, natural sleep aids, seizure management) presents a potentially massive market and many believe the larger f inancial opportunity.

The broadness of the cannabis industry touches many traditional markets, including beverage alcohol and tobacco, medical and pharmaceutical, and wellness, and not surprisingly the major global companies in this space are beginning to take a stake in cannabis, including investments and/or partnerships by household names such as Constellation Brands, Altria Group, ABInBev, Molson Coors, and Imperial Brands (as of August 2019).

What is unique about this ...