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From what I understand the overproduction isn't because of lack of demand, but provinces' slow rollout of sale and distribution. For instance, here in Ontario
by 52-6F-62 7y ago
From what I understand the overproduction isn't because of lack of demand, but provinces' slow rollout of sale and distribution.
For instance, here in Ontario the government had a plan that would have had 40 physical stores across the province by October 2018 with plans for more. The incoming government killed that. The province saw fewer than 20 stores by the following April, largely concentrated in Toronto.
Everything did look primed for a great market and it was essentially kneecapped out of political spite.
- dumbfoundded 7y agoIIRC, the value of the combined public Canadian cannabis companies was >$10B (before the 2019 q2/q3 collapse). The size of the Canadian cannabis market is <$5B. I believe analysts priced in the export market opportunity, particularly to Europe and the United States. I do believe problems with the implementation in the Canadian market hurt cashflows and accelerated the expected timeline of investors to find other markets. These rollout problems certainly hurt but everyone knew Canada isn't a huge market.
- deleted 7y ago[deleted]