Why a P.E.I. cannabis company says it's losing money, in an industry-wide trend | CBC News

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The CEO of a P.E.I. cannabis company says his business and others still aren't making money, as they face high taxes and competition from illegal sellers.

Workers at FIGR in Charlottetown package the company's products into boxes that will ultimately wind up in stores across the country. Through attrition, FIGR's workforce has dropped from 160 to 130 in the past two years.

But as busy as the company and its 130 employees are, and as solid as sales have been, the CEO said it's hardly translating into a profit. When cannabis products first hit shelves, many licensed producers started selling their products for $7-8 per gram. Now, most are selling for $4 or less per gram, and $1 of that is lost to the excise tax.

The council's president, George Smitherman, said many cannabis businesses across the country are on the brink of closure. FIGR's CEO worries raising prices would make it tough to compete with illegal growers and producers, who aren't taxed and don't face the same overhead costs.

 

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That's competition.

All truedumb did was was lower blackmarket prices and make it easier to grow and sell. Taxed the hell out of legal operations so its not anywhere near as profitable in most cases.

Everything blackface promised was lies

Good.

But, but, Justin said legalization would drive illegal sellers out. Did Justin lie, again?

Yup. That's the way it goes. If the CRA and Prov. Gov. would relax it's regs a bit and not make so much $$ from Cannabis sales, the market could flourish, enabling the smaller market LPs to become profitable via local sales.

Street one is cheaper TBT

There just too many of them

How do you define “illegal” if people can grow their own? Losers.

There are way too many stores. The market will filter and adjust. Once a few of them closes, it will be fine. It is just like convenience stores.

Maybe he should pack it in and think about getting a real job. In every industry, there are winners and losers. There is a 25% tax, but that tax buys you protection from being charged with trafficking.

Grow your own. It’s not rocket science.

It's too expensive. Low dollar high volume sales is the old saying...

The 1 thing Skippy actually followed through on and it killed an industry. People with grade 6 educations have made fortunes in this line of work for decades. Everything liberals touch turns to s%/t,how do you possibly screw up selling weed?

I couldn't make any money hauling yachts and trailers because of bureaucratic intransigence and 90% of the competition running without insurance. So I shut it down and ate the loss. Weed is special, because . . .

'Illegal sellers' are just entrepreneurs willing to take a risk 😌. What ever happened to the free market!

Or because licensed outfitters, cannot produce the quality of Cannabis the people want because of the clueless regulations put I place.

Trudy wants you baked. Reject dependence, embrace the straight edge.

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