Cannabis 'price war' could cause 'significant' damage to industry: HEXO CEO

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Legal weed prices have fallen dramatically in recent years, with the Ontario Cannabis Store advertising several brands of flower for between $3.50 and $4.50 in recent months

Hexo Corp.'s chief executive says he's seen a "price war" take shape over the last five months that could cause "significant" damage to Canada's cannabis industry."A lot of the especially smaller independent retailers are bleeding from a standpoint of just the plethora of retailers that are on the market right now and undercutting one another."

The panel undertaking the review has said their work could result in economic changes for the industry. By the OCS's count, the illicit market made up 43 per cent of Ontario's cannabis market last March, down from 75 per cent in June 2020.Before Bowman took the helm last spring, the Gatineau, Que.-based cannabis company had consistently racked up millions in losses each quarter, seen its Nasdaq listing in peril and cycled through multiple CEOs.

Its revenue hit $24.2 million, down 54 per cent from a year earlier, which it attributed to decreased market share and performance in Ontario, Alberta and Quebec.

 

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