Canada’s cannabis industry burning out 5 years after legalization

  • 📰 GlobalCalgary
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 61%

United States News News

United States United States Latest News,United States United States Headlines

Cannabis legalization has had wide-reaching effects and made its use more accessible and acceptable. Yet the days where sky-high demand was expected are gone.

The analogy, which Roach first heard from a former Toronto councillor, represents the tight grip on the cannabis market that legislators held for centuries. It meant Roach had to exploit a grey area of the law to run her popular cannabis consumption space HotBox, which opened in 2000, and its customers were accustomed to looking over their shoulders for cops before walking through the door.

“It’s becoming much harder and harder, not only to raise capital to get out of trouble, but also to sell your company. I know people that were trying to sell their cannabis stores. Nobody wanted it.”Many cannabis businesses were doomed from the start. They spent fast and furiously in anticipation of legalization, scrambled to produce the right amount of pot _ first there was not enough, then too much – and discovered catering to consumers wasn’t easy.

For dried and fresh cannabis, plants and seeds, the taxes amount to the higher of $1 per gram or a 10-per-cent per gram fee. And many of those are going unpaid. Roughly $200 million in excise taxes are outstanding from the cannabis sector, Canada Revenue Agency spokesperson Nina Ioussoupova said in an email.

As they watched valuations dwindle, companies argued that the widespread presence of unlicensed dispensaries and other underground sellers was still a problem. To this day, Health Canada estimates they have a hold over 40 per cent of the market.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 50. in US

United States United States Latest News, United States United States Headlines

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

Whistler's first (legal) cannabis retail store open for businessA Little Bud planning official grand opening celebration in Function Junction Oct. 21
Source: PGCitizen - 🏆 65. / 51 Read more »

From high flying to burnout, Canada’s cannabis industry faces downturn five years post-legalizationThe biggest cannabis companies have shrunk their footprints, laid off thousands and grappled with balance sheets that reflect a turbulent market and a longer march to profitability than once imagined
Source: globeandmail - 🏆 5. / 92 Read more »