Razzle-dazzle days long gone as pot industry faces downturn five years post-legalization

When Abi Roach thinks about the 20 years she spent fighting for Canada to legalize cannabis, she says pot legislation is like a clenched fist.

Others weren’t so lucky. They sold their business at bargain prices to a bigger rival, folded or declared bankruptcy.“Until there’s a real regulatory reform in all of the main pain points of the industry, we’re going to continue to see companies go bankrupt … and a lot of consolidation in the market,” Roach predicted.

Hexo Corp. paved the way, she said, when it launched 28-gram packages of Original Stash dried cannabis flower in 2019 . It sold for $140, or roughly $5 per gram in Ontario, and slightly less in Quebec. Then-chief executive Sebastien St-Louis marketed it as disrupting the black market.“Everyone else followed, and so you saw this massive price deflation in the legal cannabis market,” Azer said.

For edibles, extracts and topicals, the duty is set at one cent per milligram of tetrahydrocannabinol, cannabis’ active ingredient, in the product. Until the regulations are reformed, Roach maintains there’s going to be a “continued mess” in the industry while the illicit market maintains its strength.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Razzle-dazzle days long gone as pot industry faces downturn five years post-legalizationCannabis legalization has fallen well short of expectations making the heady days for the once high-flying sector a distant memory. Read on.
Source: fpinvesting - 🏆 43. / 63 Read more »

Government review of Cannabis Act drags despite ‘sense of urgency’ from marijuana industryCannabis stakeholders are preparing to mark the fifth anniversary of recreational pot legalization Tuesday and worry the longer they wait for regulatory change, the more the industry will struggle
Source: globeandmail - 🏆 5. / 92 Read more »

Cannabis shops in Canada lucky to be in business amid competition, advertising rules and THC limitsAcross the country, a patchwork of laws and regulations created inconsistencies, which has produced two tiers of cannabis shops, the executive director of the Retail Cannabis Council of B.C. said
Source: globeandmail - 🏆 5. / 92 Read more »

Government review of Cannabis Act drags despite 'sense of urgency' from pot industryTORONTO — When Canada legalized recreational cannabis in 2018, there were still many unknown implications for healthcare, industry and the country at large. ...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Government review of Cannabis Act drags despite 'sense of urgency' from pot industryTORONTO — When Canada legalized recreational cannabis in 2018, there were still many unknown implications for healthcare, industry and the country at large.
Source: SooToday - 🏆 8. / 85 Read more »