The Canadian cannabis industry had a promising beginning, but the “Green Rush” has significantly slowed in recent months. Now, the industry is facing a long list of challenges: Lacklustre sales, a slow rollout of retail outlets, competition from the illicit market and waning enthusiasm among investors, to name a few.
RCMP officers in Kelowna, B.C. intercepted two shipments of cannabis bound for Tweed Marijuana and Mettrum. Tweed put out a press release claiming they had invited the Mounties to examine the shipment — a claim which the Mounties deemed to be untrue, according to the internal documents.OrganiGram loses organic certification: 2016-17In late 2016 and early 2017 OrganiGram recalled medical cannabis that had been produced between February and December 2016 because it contained pesticides that were banned for use on cannabis plants under the Pest Control Products Act.
After the recalls, Greg Engel took over as OrganiGram’s chief executive officer “to make a major cultural shift” and the company has been regaining its footing, according to industry analysts. Zandberg says the company has “done a great job of turning things around.” Last week, another market analyst put the company’s stock high on the list of cannabis stocks to buy and hold.
An investigation failed to determine the source of the illegal cannabis. Health Canada reinstated the producer’s sales licence in October 2019. In the fallout, the company fired its CEO and cut its workforce. The incident caused concern among consumers, investors and others about how the legal cannabis industry operates in this country.“This scandal had the biggest impact on the market because of the boldness of it, and because it happened at a time when the market was in decline,” says Zandberg. “This incident contributed to the problem.