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“Oh, they’re going to pop,” Nick Brusatore, the largest shareholder of Affinor Growers Inc., said by phone. Once a mining company, the Vancouver-based firm now develops greenhouse technology for crops, including cannabis. “It’s going to pop hard.”

Canada is on track to become the first Group of Seven country to legalize pot for recreational use if it pushes forward with introducing legislation in 2017. It would join eight U.S. states where it won’t be a crime to use the drug recreationally by January and follows Uruguay, which became the first country to legalize it in 2013.

Chris Damas, an analyst at BCMI Research in Barrie, Ontario, likens the capital pouring into the sector to the dot com craze of the 1990s. At the time, the value of technology stocks rose rapidly as investors saw opportunity in the Internet’s growth despite the fact many companies had no revenue, he said.

Many holders of pot stocks that have increased tenfold are company insiders, and the market could crash if they decide to start selling to take profits, Damas said. “It does smell like a real serious bubble,” he said in a telephone interview.

Companies started piling into the sector after Canada changed rules governing medical use to allow access only through licensed producers. In 2013, Health Canada began approving licenses and six medical marijuana companies began trading on the TSX Venture Exchange. When Prime Minister Justin Trudeau wooed voters with a promise to legalize the drug in the country’s 2015 election campaign, the industry began to take off.