Here is a nice quote. "This is Health Canada's realization that medical marijuana deserves to have a space in the treatment paradigm," said Bloom Burton President Brian Bloom. "What they're asking in return is that the standards of manufacturing, distribution and vigilance are similar to what is seen in the pharmaceutical industry."

Analysts expect only a few major companies to remain standing a few years from now.

"The winners will be the ones that are going to have a strong brand, a strong customer acquisition strategy, and have the ability to scale up quickly,” said Jacob Securities analyst Khurram Malik.