The last week’s headlines about the sector’s earnings reports offered a variety of descriptors, all of them depressing. The “brutal” week was a “bloodletting,” a “bloodbath,” a “sea of red,” a “flameout […] almost as bad as the dot-com bust.” The Canadian market “continues its downward spiral,” “the [cannabis] space could be the penalty box,” and “The Pot stock bubble has burst.” As for companies struggling to make it, “Some of these guys are going to disappear.”
Financial Post, Bloomberg, HuffPost, MarketWatch, Canada.Com, Digital Journal, Financial Post, LA Times, CTV News

Cannabis sales volumes have grown by only 5.6% in the past quarter, while the number of products on the REC market grew by 20%.

  • Ernst & Young cannabis manager Ashley Chiu suspected LPs convinced regulators to allow them to price legal REC far higher than illicit REC because they counted on excitement about legalization lasting longer than it did.
  • REC prices declined 2.3% between January and October.
    Twitter—David George-Cosh

Everyone agrees Ontario’s inability to get REC stores open has been a blow to the fledgling legal market. Canopy CEO Mark Zekulin said, “Ontario represents 40% of the country’s population yet has one retail cannabis store per 600,000 people. […] The addressable market is nearly half what is expected.
Huffpost, MarketWatch