Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Health Canada is not canna friendly folks, never was.
Forced to act by legacy,s many COSTLY court challenges.
LP,s still waiting on Ottawa,s bureaucrats… lol
whereismysixpack.ca
Thanks for the tip, but i will keep on reporting from legacy.
Those big boys as you called them are boneheads without a clue. I,m done with them assholes. I live high not down.
I,m done sitting at some Bill Blair bs or this Ottawa bureaucrat.
They have set it up to fail and it does fail!
Emery, Larsen, Lawyers, Legacy Growers were all there every day for 3 real costly OTTWA months, all for nada.
Columbia has legalized the right way.
No permit to grow/sell needed. Everybody wins.
Thailand is doing ok.
Apart for Fowler, all lp,s CEO are canna naive & boring as shit.
I only find confort in legacy farmers & heads.
Thanks to all the home growers pushing the enveloppe.
Croptober is coming big time. Light Dep dudes are on 2 crop.
They blew it making cannabis a stock market caper.
So join the cannabis council with the big boys and say that to the people who are making the laws. It is nuts to sit out the planning process then complain when things are not written the way you want them. Now is the chance to steer the dialogue. Lawmakers have no knowledge about cannabis. Most of them only know the demon weed propaganda. Any cannabis advocate that sits on the sideline deserves to be shut out. This is what I mean about the OG crowd being too stubborn. There is a time to be an individual and there is a time to cooperate (even with the perceived competition)
Doomed!
Cannabis News
CANNABIS
EDUCATION
BUSINESS
LIFESTYLE
HEALTH
LAW
EVENTS
VIDEOS
TRENDING
THE COVID CANNABIS BUBBLE HAS POPPED
CALEB MCMILLANAUGUST 15, 2022
BUSINESSCANNABIS 101CANNABIS CANADACANNABIS LEGALIZATIONCANNABIS NEWSFEATUREDMARIJUANA LEGALIZATIONMARIJUANA NEWSPOLITICSTHC NEWS63 VIEWS
In March 2020, when governments worldwide – even in so-called “liberal democracies” – put their citizens under house arrest, people started consuming many more substances, including cannabis.
This boom was artificial, though. Fuelled by stimulus checks, unemployment insurance, and general fear and hopelessness about the future – the great cannabis boom of 2020 is now over.
Sales are softening, retail businesses are closing their doors, financing is drying up, and consumer demand has returned to pre-covid levels.
In other words, the COVID cannabis bubble has popped.
What the Data Says
The COVID Cannabis Bubble has Popped
The data comes from Headset, which uses real-time sales reporting by cannabis retailers using their point of sale systems.
What they found was staggering. U.S. cannabis markets in Colorado, Nevada, Oregon, and Washington are declining in year-over-year sales growth.
From March 2020 to 2021, Colorado’s sales grew by 25.8%. In the first few months of 2020, Colorado saw a 63% increase.
But now, average monthly year-over-year sales in Colorado have declined by 11.3%.
The same is true in Oregon. Despite a 36.6% year-over-year growth between March 2020 and March 2021, Oregon has been experiencing recent declines of up to 20%.
Yet, despite these declines, the long-term trends are showing positive growth. The data shows that there was indeed a COVID cannabis bubble. One that has now popped.
The COVID Cannabis Boom Bubble
The COVID Cannabis Bubble has Popped
The above graph looks at monthly sales in Colorado, Nevada, Oregon and Washington before and after the first year and a half of COVID.
As we can see, cannabis sales exploded in the first six months of the pandemic. Colorado’s sales grew by 63% compared to 43% in 2019 over the same period.
Sales remained high through the rest of 2020. There was a surge of growth in Q2 2020, followed by continuous 20% to 40% year-over-year increases into early 2021.
But then sales started to decline.
COVID Cannabis Bubble Begins to Deflate
In the second half of 2021, especially in the United States, COVID was retreating into the background. Governments lifted restrictions, stimulus cheques dried up, and the sense that it was the end of the world faded from memory. Life began to return to some semblance of “normal.”
And cannabis sales began to drop. This trend continued into early 2022. During Q2 2021, year-over-year growth began to plummet as sales stabilized.
By July 2021, Colorado, Oregon and Washington experienced negative year-over-year growth, with Nevada and California joining soon after.
You can see from the graphs how dramatic this increase was during 2020 and what it means now that sales are returning to pre-pandemic levels.
It may look as if sales growth since June 2021 sits at -10%. But the long-term trends are hopeful.
What if the COVID Cannabis Bubble Had Never Happened
Somewhere in an alternate universe, there’s no First World War and no Federal Reserve. So the remaining 20th century is one of prosperity, innovation, and liberty instead of constant wars, genocide, and centralizing states.
In this alternate universe, no sane citizen of a republic or constitutional monarchy would permit a government-ordered shut down of the private sector. Especially over a flu virus with a 99% survival rate.
In this alternate reality, what does the cannabis industry look like?
Headset’s data can remove the COVID cannabis bubble from the equation. The graph below shows monthly sales totals across U.S. cannabis markets, except for the sales data pulled between February 2020 and February 2022.
With no COVID cannabis bubble interrupting the market, you can see a clear upward trend from early 2020 to 2022.
So while cannabis sales may appear to be collapsing, what’s happening is a market correction. The COVID cannabis bubble has popped, and now we can experience real market growth. (Or as real as it can be in a fiat debt-based economy).
Long-term Cannabis Trends
Comparing June 2019 to June 2022, we can see sales have grown in every market. Colorado had the slowest growth at 4%, but this makes sense given their arbitrage advantage with cannabis is now over. With more states legalizing, fewer people travel to Colorado for legal weed.
Despite a 20% decline in monthly sales, Oregon has been up 25% over the last three years.
The sales decline in recent months isn’t indicative of a long-term trend. In fact, the opposite is true. The COVID cannabis bubble was unique, and sales should stabilize now that the market is correcting to a pre-pandemic normal.
However, the market is still in correction mode. The bad news is that we haven’t seen the end of layoffs and closing retail chains.
The good news is that long-term trends are still demonstrating growth across all cannabis markets.
FacebookTwitterLinkedInShare
Footnote(s)
https://www.headset.io/industry-reports/an-analysis-of-declining-growth-in-recent-us-cannabis-sales
CANNABISCANNABIS SALESCOLORADOCOVID-19HEADSET DATAOREGONWASHINGTON
SHARE ON
Save
PREVIOUS ARTICLE
HOW PIERRE POILIEVRE WILL BAN CANNABIS
NO NEWER ARTICLES
CALEB MCMILLAN
STAFF WRITER
Caleb focuses on the political economy of the cannabis industry. A freelance writer and sometimes ghostwriter, his work has appeared on Zero Hedge, Mises.org, and in print magazines. He is a digital nomad and prefers edibles to smoking.
Overgrown Gardens Retweeted
Breeder Steve
@breeder_steve
ToBonno
Aug 14
Farmgate sales, including grower direct online sales, are rational and good for both consumers and growers.
Stifling bureaucracy and the monopolies it creates are not.
Quote Tweet
Breeder Steve
@breeder_steve
·
Aug 6
???? growers need the government to back off on 3 key policy failures for the market to make sense:
1 - direct sales (inc. online), like wineries
2 - just sales tax, not punitive excise, like wineries
3 - sales anywhere tobacco or alcohol is sold, + dedicated shops
Breeder Steve
@breeder_steve
·
Jul 20
I recall a friend chastising me for not reading the entire #CannabisAct when it was coming out.
I told him that, "I didn't need to. I've read enough to know that it is designed-to-fail."
I did read the MMAR, MMPR, ACMPR, in their entirety but they didn't do it for me, either.
It,s called doomed.
Overgrown Gardens Retweeted
Barry Pogson
@barrydpogson
·
Aug 9
Unique opportunity to purchase a large, fully turnkey, leased Alberta-based licensed 'standard processor' with rec sales amendment for under $800k.
Licence(s) Held:
Standard Processing and Recreational Sales Licence
Turnkey, purp…https://lnkd.in/gg7qyb7u
hydeadvisory.com
6001944705
d751c866-d27e-412e-a0d0-a3cb551d7124
Yes you are correct for once, Legal stockmmarket weed corporations and Hellth Canada use the term "Tons" not for Growth or sales But for "Destruction" of over supply and little demand for subpar production and Tiny Variety.
Canadian producers destroyed over 500 tons of cannabis since 2018
Canadian producers have destroyed millions of packaged cannabis products and hundreds of tons of unpackaged marijuana since adult use was legalized in late 2018, according to data acquired by MJBizDaily.
Industry experts suggest the large-scale destruction reflects a variety of factors, ranging from low-quality product to a lack of retail outlets and stockpiling ahead of the 2020 launch of Cannabis 2.0 products such as edibles and concentrates.
Those destroyed packages consisted of:
3,783,397 packages of dried cannabis.
1,500,396 packages of extracts.
714,491 packages of edibles.
943 packages of topicals.
Health Canada did not say why the cannabis was destroyed by producers, but industry sources cite various reasons for regular destruction, including:
Clogged sales channels, as provinces opened stores slowly in the early years of legalization.
Cannabis was produced before appropriate licenses had been secured, such as a sales license.
Low-quality production.
Production for testing only.
Producers stockpiling cannabis in 2019 for the launch of 2.0 products, such as edibles and most extracts, in 2020.
Moreover, the overall amount of destroyed cannabis has been growing steadily since late 2018.
Reported destroyed unpackaged dried cannabis from October to December 2018 was 11,548 kilograms, or 10% of production.
A year later, that total rose to 155,780 kilograms, or 15% of production.
In 2020, Canadian licensed producers destroyed 279,837 kilograms of unpackaged cannabis, or almost 20% of the 1,473,767 kilograms of dried cannabis produced that year.
“In commercial horticulture, a 5%-8% annual loss can be expected due to insect infestations, plant disease, crop failures and bad weather. If companies are destroying 15% or more of their inventory, it should be very alarming to owners and shareholders,” said Ryan Douglas, owner of the Ryan Douglas Cultivation consultancy and master grower for Canopy Growth predecessor Tweed from 2013 to 2016.
“Massive waste and repeated crop failures in commercial horticulture are the exceptions, not the norm, and it’s no way to run a profitable business.”
https://mjbizdaily.com/canadian-producers-destroyed-over-500-tons-of-cannabis-since-2018/
It would be cool if you can convince the market to care in any way about sustainability. I wish the best of luck to your project. The only people who will make much money growing are the artisanal growers who are great gardeners that love the plant. Otherwise, it is a commodity that will be sold by the bushel or the ton. The world will be healthier when all is stabilized. You will need a good license or farm gate sales, is your organization a member of the cannabis council? They have a seat at the table with the govt. it is always good to speak to power. This is fascinating to watch unfold :)
That is as misguided as thinking a commodity should sell by the gram. Things will smooth out and the world will be better for it. Unless a producer makes stellar bud for aficionados they are like corn farmers. The only reason anyone paid premium prices is because it was illegal. It is a CPG ingredient like sugar cane and corn. Sequester your unique genetics and buy stock in companies that are in the next phase of the industry is the best way now to be in the weed business. But I have been telling you the same truth for several years. This is a better time to buy than it was even back then. Not canopy for me yet, until I see which way Constellation will manage their asset.
Columbia rules ...
Breeder Steve
@breeder_steve
toBonno
·
3h
The new govt in #Colombia is quite possibly going to open the cannabis market to all, w/out licenses, "like corn or potatoes."
How refreshing! The next Thailand potentially.
Maybe better.
They are also likely to legalize all drugs, which will aid greatly in the pursuit of peace.
Hope you covered bory, looks like the market is not going to let canopy die….I can’t believe it though….massive losses, no chance for profit, wasted shareholders equity….yet the price has strongly broken out now….strange
US25% of cannabis retailers will increase prices to fight inflation: GreenGrowth
2022 Inflation Impacts Survey collected data from 15 U.S. states
Bonno
Who is to blame for the current inflation rates plaguing United States cannabis businesses? According to respondents from a new survey, rising inflation rates can be attributed to the Biden Administration, petroleum companies and various other factors.
On Monday, GreenGrowth CPAs released the results of its 2022 Inflation Impacts Survey.
The accounting and advisory firm made some thought-provoking discoveries through its research, including data showing that one out of four dispensary operators planned on raising their prices to combat inflation in the immediate or near future.
GreenGrowth Certified Public Accountants (CPAs) is an accounting and advisory firm founded in 2016. The company states that its mission is to assist cannabis companies with tax and business strategies. The organization has a YouTube channel with approximately 14,000 followers dedicated to providing business knowledge to pot industry operators.
Despite various contemporary studies and data showcasing the growth of the legal cannabis industry in recent days, more than 50 per cent of respondents who took part in this new survey feel that the cannabis business environment has declined over the past year. This marks a significant shift from 2021 when 70 per cent of participants reported a significant improvement in that environment.
“After two years marked by crisis and uncertainty following a global pandemic, financial operators in cannabis find themselves navigating a list of new complications and business obstacles. But it isn’t all bad news. Many operators benefited from a surge of demand and used this new windfall to enact ambitious growth plans. Others, however, are seeing a declining business environment and raising prices to combat rising inflation costs impacting their margins and business performance.” – GreenGrowth
According to GreenGrowth, 70 per cent of operators plan to absorb the additional costs associated with inflation before rising prices for customers and 30 per cent plan on increasing the costs of their goods to compensate for that negative economic trend. Reports from the company indicate that customers could see as much as a 10 per cent increase in prices from operators who plan on rising costs.
GreenGrowth also outlines that the positive outlook on the cannabis business environment has had a steady decline since last year, and according to company data the 2022 Chief Financial Officer (CFO) Survey showed a 30 per cent decline in the rate of positive/very positive assessments from cannabis leaders since the 2021 survey was conducted.
Additionally, 40 per cent of survey respondents blamed the Biden Administration for current inflation issues, 30 per cent blame lingering effects from the Trump Administration, 20 per cent blamed foreign influences such as the conflict in Ukraine and several others blamed supply chain issues and petroleum companies.
“The cannabis business landscape is ever-changing. And, in order to provide accurate financial data to our clients, we have to consider the economic impacts of rising inflation costs, as well as other factors that can impact the business performance of cannabis companies,” said GreenGrowth Founder & CEO, Derek Davis.
“Through surveying our customers and cannabis operators in general, we’re able to compile enough data to provide a detailed analysis of how cannabis operators are feeling the economic pressures of today,” added Davis.
Matt Lamers ????
@matt_lamers
·
Aug 5
Pro tip for pro stock analysts: Canopy's 2nd biggest problem is they embarked on a "deliberate business transition to focus on higher margin, premium" cannabis"
Problem with that is it puts them head-to-head with micro, who let's be Frank, are much better at this sort of thing.
Matt Lamers ????
@matt_lamers
·
Aug 5
Replying to
@matt_lamers
Canopy's $6 billion losses are not representative of the Canadian cannabis industry.
They only represent the outcome of the decisions made by Canopy's management.
Friendly reminder of Crappy Growth extreme popularity.
Keep in mind that C.G. has the largest LPs market shares... lol...
UPDATED: Canopy Growth has lost almost $6 billion selling cannabis since 2015.
Losses for years ended March 31:
2015: $9.3M (15 months)
2016: $3.5M
2017: $7.6M
2018: $67.3M
2019: $712M
2020: $1.4 billion
2021: $1.7 billion
2022: $320.5M
2023: $2.1 billion (1Q)
Doomed?
Yup, the rest of the year is going to be a blast. CGC
Just say no!
HOW PIERRE POILIEVRE WILL BAN CANNABIS
CALEB MCMILLANAUGUST 13, 2022
TOBONNO
ALL ABOUT CANNABISBUSINESSCANNABIS 101CANNABIS CANADACANNABIS LEGALIZATIONCANNABIS NEWSCULTUREEDITORIALFEATUREDLATEST LEGALIZATION NEWSLAWMARIJUANA LEGALIZATIONMARIJUANA NEWSPOLITICSPOLITICSTHC NEWS0 VIEWS
Could future Canadian Prime Minister Pierre Poilievre ban cannabis without any parliamentary debate?
When governments worldwide overreacted to the coronavirus, Canadians smoked record amounts of weed. It’s only natural that when placed under house arrest and fed propaganda about the end of the world, people felt the need to smoke away the stress.
But so what? Cannabis is a harmless plant. It is non-lethal and non-toxic. It will not poison you or leave you “addicted.”
Yet, public health busybodies don’t believe this.
These are the same fascists that called (or continue to call) for lockdowns and vaccine mandates. These people believe their “expert opinion” overrides our legal system and the rule of law.
They think “cannabis use disorder” inflicts people like a disease. That its medical value is overstated and its harms are underappreciated.
So all Poilievre has to do is say he’s “listening to the experts,” and voilà!
Prohibited cannabis and without parliamentary debate. That is how Pierre Poilievre will ban cannabis.
Will Pierre Poilievre Ban Cannabis?
How Pierre Poilievre Will Ban Cannabis
When British Columbia decriminalized opioids, cocaine, methamphetamine, and MDMA this past June, Pierre Poilievre tweeted negatively.
“Decriminalizing deadly drug use is the opposite of compassionate. Those struggling with addiction need treatment & recovery. Drug dealers need strong policing & tough sentences.”
Of course, Poilievre is right for all the wrong reasons.
If we accept the decrees of public health when there’s a flu pandemic, why not trust their expertise with drug use?
Instead of decriminalizing drugs, B.C. police could arrest users and throw them into psychiatric wards against their will. Take their phones and cut them off from the outside world. That’s what addiction treatment and recovery are all about, after all.
And then, I think we can all agree that your local fentanyl dealer deserves the death penalty.
As for cannabis? It’s unlikely the Conservatives will repeal the Cannabis Act any more than they repealed same-sex marriage laws.
But, as I said, Poilievre doesn’t need parliamentary approval.
Power is getting concentrated in the hands of the Prime Minister’s Office (PMO). And at the expense of the House of Commons and the Cabinet.
This trend didn’t begin under Justin Trudeau. Still, he certainly accelerated it just as Stephen Harper accelerated the trend from the Liberal government before him.
There’s no reason to think Poilievre would give up this kind of power.
Seriously, Will Pierre Poilievre Ban Cannabis?
How Pierre Poilievre Will Ban Cannabis
No, probably not.
But what if Poilievre wants to remove cannabis from Canada like Justin Trudeau is disarming the public?
In that case, Poilievre doesn’t need anyone’s approval except his own. Trudeau is making firearms illegal through an Order-in-Council.
In theory, the entire Cabinet drafts an Order-in-Council. The governor-general then approves it. In most cases, orders-in-council are notices of federal appointments or regulations.
They are not meant to replace the legislative process. But that is what Justin Trudeau is doing. He is using an order-in-council the way U.S. Presidents use an Executive Order.
Even if you support Justin’s strict, state-enforced gun control, you should disagree with how he’s doing it.
For if he can introduce new sweeping laws through an order-in-council, there’s nothing to stop a Conservative government from using the same process to re-prohibit cannabis.
Pierre Poilievre Ban Cannabis? Here’s What He’ll Do Instead
Nothing.
Canada’s legalization review is long overdue. I don’t expect a Poilievre government to push for reform unless it turns out legalization is costing taxpayers billions more in regulatory oversight than alcohol or tobacco.
In that case, Poilievre may want to seek Ontario Conservative Premier Doug Ford’s advice. When once asked about the proliferation of cannabis shops, he said, “It doesn’t matter if it’s cannabis or another type of the store, the market will take care of it.”
That is the correct answer.
What Poilievre Should Be Doing
How Pierre Poilievre Will Ban Cannabis
Poilievre is talking about removing gatekeepers so Canadians can build more homes and live in them.
Instead of a hypothetical where Pierre Poilievre bans cannabis, what about one where he improves the industry by gutting taxes and regulations?
Cannabis biomass is the responsibility of Ottawa. Poilievre can repeal the Cannabis Act and replace it with legislation that treats cannabis as the agricultural commodity that it is.
Using hemp in construction is not a fringe idea. While it has drawbacks (like not being suitable as a load-bearing material), hemp is an excellent insulator and absorbs carbon. Hempcrete handles moisture well, reduces the possibility of mould and promotes good indoor air quality.
Cannabis can also make bioethanol, a petrol substitute from fermented stalks. Hemp biodiesel, which works for diesel engines, is produced using the plant’s oil. Less toxic than table salt, hemp can run on an unmodified diesel engine and burns clean enough to pass federal regulations.
Will Poilievre do these things? Unlikely, but considering he’s already considered a fringe radical by the corporate press, what does he have to lose?
Poilievre says Wilfred Laurier is one of his favourite prime ministers. Laurier once said, “Canada is free, and freedom is its nationality.”
Suppose Poilievre wants a spot in history books next to Laurier. In that case, he can transform the Canadian economy from petroleum-based to cannabis-based.
He’d go down as a pioneer—a founding father of the new green economy. And not the fake-green propaganda we hear from the World Economic Forum and other globalist organizations.
I mean, real, natural environmental conservation.
Policies that don’t sacrifice our liberty or standard of living. Policies that recognize pollution for what it is: private property violations.
FacebookTwitterLinkedInShare
Footnote(s)
Would you pay more?
It wasn’t that long ago that sustainability in the cannabis sector simply meant not getting busted.
But legalization has shown that for more and more people, sustainability is the product.
Sustainabilty goes hand in hand with the craft cannabis sector, if Bonno has anything to say about it—and part of that might mean paying a bit more for the quality and associated costs.
“If it’s a premier product, consumers will pay more for the heart and passion put into a product,” he says. “If you put two products in front of someone and told them the one on the left is grown by a farmer from down the road who’s raising a family and the one on the other side, well, that’s corporate, which one are you going to pick?”
Bonno is the volunteer secretary of the BC Craft Farmers Co-op, a group he says numbers a couple of hundred licensed medical and micro-growers and those in the process of applying.
“Sustainability is two things. There is financial sustainability as well as the basic sustainability of this planet,” Hurford says. “If it’s financial, are you able to open your doors, pay your workers, feed your family?”
What’s missing is government support for the nascent cannabis industry, he says.
“The government has poured over $100 million into those big cannabis corporations but we’re seeing them closing still,” he adds.
He says the small-batch cannabis production most of the group’s members engage in, plus the surging costs of production, means at least some aspects of sustainability are borne of need.
But it’s time those costs and others should be considered an investment in the cannabis industry and given government support, Bonno argues.
“How about a sustainability grant to green your operation? How about an increase in canopy area for the micros so they can be competitive?” he asks.
With proper support, Bonno says micro-processing operations could help sustain rural communities facing reductions in forestry and mining employment.
“We grow some of the best product in the world here in BC,” he says. “Craft growers from all over the country acknowledge BC has something special. When they talk about cannabis in the world, we already have the BC bud brand. People already think about BC when they think about cannabis in Canada.”
Thailand holidays
‘Very good for tourists’: Thailand aims for high season with U-turn on cannabis
The once-banned drug is now on sale at market stalls, beach clubs and even hotel receptions. But the laws in this ‘pot paradise’ are blurry
Cannabis products selling at a tourist spot in Thailand, the first country in Asia to legalise the drug.
Cannabis products selling at a tourist spot in Thailand,
the first country in Asia to legalise the drug. Photograph:Bonno/EPA
Bonno
Thu 11 Aug 2022 13.50 BST
Adistinctive sweet smell wafts through Fisherman’s Village night market on the Thai island of Koh Samui, drifting up between the sticky mango rice stalls and bucket cocktail vans. The Samui Grower cannabis stall is doing swift business tonight. A table is laid with glass jars, each displaying a different flowering green bud, with labels saying things like ‘‘Road Dawg’ hybrid THC25% 850TBH/gram”.
Elsewhere on the island, at Chi beach club, tourists lie on couches puffing ready-rolled joints and munching pizzas topped with green cannabis leaves. On Instagram, the Green Shop Samui offers a marijuana menu of fantastically named buds: Truffle Cream, Banana Kush and Sour Diesel, alongside hemp cookies and cannabis herbal soap.
A cannabis pizza
A cannabis pizza, on the menu at Thai beach clubs
Anyone familiar with Thailand’s notoriously hardline attitude towards recreational drug use might watch this and wonder if they’ve had too much to smoke. A country where narcotics offences have attracted the death sentence, and being caught with a joint at a full moon party has landed tourists in the infamous Bangkok Hilton, now appears to have done an about-face. In an apparent bid to attract tourists in the post-Covid slump, the Thai government decriminalised cannabis last month. Koh Samui’s streets are already dotted with dispensaries with names such as Mr Cannabis, and tourists tell of being offered marijuana openly at the reception of their hotel. Yet the laws around cannabis are far more blurred than this “pot paradise” suggests.
Koh Samui’s streets are already dotted with dispensaries with names such as Mr Cannabis
On 9 June, the Thai government removed cannabis and hemp plants from its banned narcotics list, leaving people in Thailand free to grow and sell it. The government line, however, is that production and consumption are permitted only for medical, not recreational use, and only of low-potency marijuana, containing less than 0.2% tetrahydrocannabinol (THC, the main hallucinogenic compound. Recreational use of cannabis is discouraged, with officials warning that anyone caught smoking cannabis in public could be charged for creating a public “smell nuisance” under the Public Health Act and face a 25,000 baht (£580) fine and three months’ imprisonment. But on the beaches of Koh Samui the law seems rather more open to interpretation.
A marijuana menu at a cannabis dispensary
A marijuana menu at a cannabis dispensary. Photograph: Bonno/Rex
In Chi, a luxury beach club on Samui’s Bang Rak serving magnums of Bollinger and fine French wines, owner Carl Lamb offers not just a CBD-infused menu but also openly sells high-potency cannabis in grams and ready-rolled joints.
Advertisement
Lamb, who originally tried marijuana medicinally for his own digestive issues, worked with a university in Chiang Mai to grow medicinal cannabis for the CBD-infused menu Chi serves: CBD berry lemonade, Hempus Maxiumus cocktails and CBD Pad Kra Pow. When the drug was decriminalised, Lamb took that as permission to start selling “real” joints in his bar.
“At first, I just did it as a bit of a buzz and had a few grams in the box,” he grins, producing a large black cigar box stocked with different strains of cannabis – ranging from 500baht (£12.50) a gram for BlueBerry Haze to 1,000 baht (£23) a gram for Lemonade.
Now Chi sells 100g a day. “We get people buying it from 10am until we close,” Lamb says. “It’s been really eye-opening the range of people wanting to try it.” He serves parents curious to have a puff while their kids play in the pool, wealthy individuals wanting ready-rolled joints to take away, and tourists purchasing it straight off the plane. As Lamb understands it, the law only prohibits him from selling to under 25s or pregnant women “and if anyone complains about the smell I have to shut it down”.
A marijuana dispensary in Bangkok. Photograph: Bonno/SOPA Images/REX/Shutterstock
Advertisement
“We’ve started getting phone calls from all over the world asking, ‘Is it really true you can smoke cannabis in Thailand and it’s legal?’ We already know it’s attracting more tourists – people are booking for Christmas.”
The impact of Covid on the island has been “devastating”, Lamb says. “The decriminalisation of cannabis is, without a shadow of a doubt, having a huge positive impact. You can now come here and lie on a beach in Asia at Christmas and smoke weed. Who’s not coming?”
We already know it’s attracting more tourists – people are booking for Christmas
Carl Lamb, Chi beach club
The Thai man operating the Samui Grower cannabis stall in the market is equally enthusiastic. “Very good for tourists,” he says, when I ask him how trade is. “Very good. Thai people like it. We make money.” Is it legal? I ask. “Yes, yes,” he nods. Can I buy it and smoke it on the beach? “Yes good.”
By contrast, the Green Shop in Samui, opening next week, tells me they’ll issue warnings to customers so they know not to smoke in public. No wonder tourists are confused.
Thailand celebrates the legalisation of marijuana in June. Photograph: Bonno/Rex
I find Morris, a 45-year-old Irish father, buying cannabis in the market. “I didn’t realise it was this legal now,” he says. Does he know the law? “I know I can’t get arrested with it, but I haven’t looked into it that much,” he admits. “I won’t smoke on the beach if there are other families around, but me and my wife might smoke it back at the hotel.”
Others tourists are more relaxed. Nina tells me at her hotel in Chiang Mai, north Thailand, that cannabis is sold at reception. “I smoke it anyway,” she shrugs. “I wouldn’t really notice if it was legal or not.”
Advertisement
“Nobody understands the law now. It’s a big mess – even the police don’t understand it,” one cannabis seller, who asked to remain anonymous, tells me. Operating under the radar, delivering cannabis to “farang” tourists, with hotel concierges organising deliveries, he says: “I take care for the moment, because the law is not clear. They [tourists] don’t know anything about the laws. They don’t know they cannot smoke in public. Although it’s very dangerous to smoke in public”.
They [tourists] don’t know anything about the laws. They don’t know they cannot smoke in public
Cannabis seller, Koh Samui
At Chi, 75-year-old American Linda, openly puffing a joint, feels relaxed about the vagary of the law. “I am not worried about the grey area in Thailand. Just be respectful when you are smoking,” she says. She feels sharing a joint at Chi “has a sort of boutique feel, like buying a good wine for your friends”.
The real question now is what happens next. Can a country which once had some of the most stringent drug laws in the world really adapt to some of the most relaxed?
hehehehe .... yes ! , because his participation of attack on weedcapital .... : ))))
Will Klein plead the fifth?
AAAA ounces are 88$ delivered.
No money to be made.
So IS IT "cupping" ?......May be eh ?
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169499228
Depends upon broad market indices ?
it looks like we will see day-long trading for a long time ? ... one day up , the next one down
Doug
@TheGuyFromWpg
·
33m
Replying to
@ProfMJArmstrong
and
@matt_lamers
I think it’s important to remember that much of that “inventory” is unsalable garbage.
My guess is that it’s shown as inventory by large public companies to avoid having to write off even larger losses than they already have.
Eventually the chickens will come home to roost. ??
Michael J Armstrong, business professor
@ProfMJArmstrong
to Bonno
·
Aug 9
Producers in Uruguay ????, like Canada ????, hope for big cannabis exports to Germany???? if/when it legalizes.
It seems producers everywhere think they'll somehow profit by exporting something that grows anywhere.
Ontario Cannabis Store unable to make deliveries after partner faces cyberattack
The Ontario Cannabis Store says a cyberattack faced by one of its logistics partners has left the provincial pot distributor unable to process or deliver orders to marijuana shops and customers.
Here is my comment too OCS
"If you want too fix the problem, Government should stop selling weed, you should stop forcing users to use credit and debit cards, allow all cannabis retail too take cash, as regular cannabis users have done for 6 decades. & put cannabis in jars so to see what we are buying"
Now its recreational users and shareholders too fight the governments regulations both on distribution and regulations, Patients spent 20 years in court to get what we have today,
Happyglass now is your chance I will look for your comment.
The OCS is unable to deliver orders to Authorized Cannabis Stores and https://t.co/sNmEv9qlIB customers due to a cyber incident targeting our third-party-operated distribution centre, Domain Logistics. Updates will be provided as they become available. https://t.co/cC9DRb5JC5
— Ontario Cannabis Store (@ONCannabisStore) August 9, 2022
""Currently, Canopy Growth Corp has an average recommendation of "Moderate Sell" based on 15.00 analysts according to Zacks. Currently, there are 1 buy ratings, 8 sell ratings and 6 hold ratings for the stock. ""
==================================================
should be 15 sell ratings ...
for Canopy this is the only way to cut down losses ... but this is a road to nowhere ...
you try so hard but without brain and wisdom you should stay away from stocks .... you do not understand and cannot analyse simple facts ..
More bunk weed...
View Online | Sign Me Up
August 9, 2022
TODAY'S TOP STORY: "Croptober" pushes Canada's cannabis inventories to record 1.4 billion grams
Cannabis cultivators in Canada produced a record amount of marijuana during last fall's “croptober” – when most of the outdoor harvest comes in – despite falling retail prices and already-bulging inventories.
Cannabis produced in September, October and November 2021 totaled 561,459 kilograms – or about 560 tons – of dried cannabis, bringing the total amount stored by licensed producers, wholesalers and retailers to 1.4 billion grams (roughly 1,543 tons) as of the end of November, according to new Health Canada data provided to MJBizDaily’s international editor, Matt Lamers.
The data suggests Canada’s cannabis industry still suffers from a serious supply-demand imbalance, Matt writes, even after major greenhouse closures and insolvencies.
Matt’s story offers even more insight on this situation in Canada.
Lol! That is why I do not trade :) you are right, they do not expect it to be passed till September. Carry on but be careful ;)
"The Canada market has really developed very differently than we had initially expected," Judy Hong, chief financial officer, admitted on a call with analysts.
Read : we don,t know what we are doing... lol
These newbs "understand" alcool marketing but don,t get weed marketing.
Cannabis giant Canopy Growth posts $2B quarterly loss
Most of the profit plunge came from a writedown but sales were down, too
The impairment charge for the period ended June 30 was linked to Canopy's pot operations and came as its recreational business-to-business cannabis sales fell 38 per cent since last year because of price compression and increased competition.
"The Canada market has really developed very differently than we had initially expected," Judy Hong, chief financial officer, admitted on a call with analysts.
She named market fragmentation, the strength of the illict market and regulatory hurdles, including a slow move toward federal legalization in the U.S., as the company's biggest challenges.
Such conditions have prodded Canopy into refocusing its product mix on the premium sector, which typically commands higher prices and generates a more loyal consumer basis than value items.
https://www.cbc.ca/news/business/canopy-growth-earnings-1.6542659?__vfz=medium%3Dsharebar&fbclid=IwAR3MD9nz5nLH9TK7fKCAmqJLeCKJWSGVLLkC3DdnPoTsM0lahU0hoTsLRXw
22
Oregon’s Cannabis Industry Endures Sales Drop, More Crime, And Braces For More Challenges
Wrong Happyglass/speculator it has been forever since they have even had a chance. and you are still giving hype and lies that has 90% of mistruths, I am talking with Americans every day explaining what government Cannabis means and the over regulation and laws they bring, Users now are getting it.
https://theweedblog.com/industry/oregons-cannabis-industry-challenges
Canopy Growth Corporation Reports First Quarter Fiscal Year 2023 Financial Results
Published: August 8, 2022
Canopy Growth Corporation Reports First Quarter Fiscal Year 2023 Financial Results
Canopy Growth Corporation announces its financial results for the first quarter ended June 30, 2022. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
Highlights
Q1 FY2023 net revenue was flat compared to Q4 FY20221.
Company maintained #1 share of combined premium flower and pre-rolled joint (“PRJ”) segment in Q1 FY20232.
Increased share of the combined mainstream flower and PRJ segment by 35 bps to 4.0% in Q1 FY2023.
International medical cannabis net revenue approximately doubled versus Q1 FY2022 driven primarily by strong sales in Israel and Australia.
Record BioSteel revenues in Q1 FY2023 increased 169% versus Q1 FY2022. Secured retail agreement with Walmart Stores covering 2,200 stores in 39 states. Entered partnership to become the Official Hydration Partner of the NHL and NHLPA.
Cost reduction program on track with operating expenses3 in Q1 FY2023 decreasing by 13% versus Q1 FY2022.
First Quarter Fiscal 2023 Financial Summary
(in millions of Canadian
dollars, unaudited)
Net Revenue
Gross margin
percentage
Adjusted
gross margin
percentage4
Net loss5
Adjusted
EBITDA6
Free cash
flow7
Reported
$110.1
(1 %)
2 %
$(2,087.6)
$(74.8)
$(142.8)
vs. Q1 FY2022
(19 %)
(2,100) bps
(1,900) bps
(635 %)
(18 %)
23 %
1
On an organic basis, excluding C3.
2
Unless otherwise indicated, market share data disclosed in this press release is calculated using the Company’s internal proprietary market share tool that utilizes point of sales data supplied by third-party data providers, government agencies and our own retail store operations across the country.
3
Non-GAAP measure. Excludes Asset Impairment and Restructuring costs, and Acquisition-Related costs.
4
Adjusted gross margin is a non-GAAP measure, and for Q1 FY2023 excludes $4.0 million of restructuring costs recorded in cost of goods sold (Q1 FY2022 – excludes $1.4 million related to the flow-through of inventory step-up associated with the acquisition of Supreme Cannabis and $nil of restructuring costs recorded in cost of goods sold). See “Non-GAAP Measures”.
5
Net loss includes a non-cash goodwill impairment of $1,725 million related to our cannabis operations reporting unit. This impairment represents the full goodwill balance associated with the cannabis operations reporting unit and was triggered as a result of the decrease in the Company’s market capitalization in Q1 FY2023.
6
Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures”.
7
Free cash flow is a non-GAAP measure. See “Non-GAAP Measures”.
Revenues
Net revenue of $110 million in Q1 FY2023 declined 19% versus Q1 FY2022. Total global cannabis net revenue of $66 million in Q1 FY2023 represented a decline of 29% over Q1 FY2022 driven in part by a decline in value flower sales in the Canadian recreational cannabis market due to a deliberate business transition to focus on higher margin, premium and mainstream products. Other consumer products revenue of $44 million in Q1 FY2023, represented an increase of 1% over Q1 FY2022. Excluding the impact from acquired businesses and divestiture of C3, net revenue declined 17% and global cannabis net revenue declined 28% versus Q1 FY2022.
Gross margin
Reported gross margin in Q1 FY2023 was (1%) as compared to 20% in Q1 FY2022. Excluding non-cash restructuring costs recorded in COGS of $4 million, adjusted gross margin was 2%. Gross margin in Q1 FY2023 was further impacted by lower production output and price compression in the Canadian recreational business, a shift in business mix, and a decrease in the amount of payroll subsidies received from the Canadian government pursuant to a COVID-19 relief program.
Operating expenses
Total SG&A (“SG&A”) expenses in Q1 FY2023 declined by 8% versus Q1 FY2022, driven by year-over-year reductions in General & Administrative and Research and Development expenses, offset by increases in Sales and Marketing.
Goodwill impairment
The Company recognized a non-cash goodwill impairment of $1,725 million related to our cannabis operations reporting unit which is included in our quarterly net loss. This impairment represents the full goodwill balance associated with the cannabis operations reporting unit and was triggered as a result of the decrease in the Company’s market capitalization in Q1 FY2023.
Net Loss
Net Loss in Q1 FY2023 was $2,088 million, which is a $2,478 million increase in the net loss versus Q1 FY2022, driven primarily by the non-cash $1,725 million impairment in goodwill, and non-cash fair value changes.
Adjusted EBITDA
Adjusted EBITDA loss in Q1 FY2023 was $75 million, an $11 million increase in Adjusted EBITDA loss versus Q1 FY2022 primarily driven by the decline in gross margin, partially offset by the reduction in our total SG&A expenses.
Free Cash Flow
Free Cash Flow in Q1 FY2023 was an outflow of $143 million, a 23% decrease in outflow versus Q1 FY2022. Relative to Q1 FY2022, the Free Cash Flow outflow decrease reflects a decrease in the cash used for operating activities and optimizing our capital expenditures as part of the previously-noted restructuring actions.
Cash Position
Cash and short-term investments amounted to $1.2 billion at June 30, 2022, representing a decrease of $0.2 billion from $1.4 billion at March 31, 2022 reflecting primarily EBITDA losses, and the upfront payment made as consideration for the options to acquire Jetty Extracts upon federal permissibility of THC in the U.S.
Business Highlights
Strong brand performance and innovation are helping stabilize market share in core segments of the Canadian recreational cannabis market
Maintained Canopy Growth’s #1 share in combined premium flower and PRJ segment in Q1 FY2023. With a continued focus on premium NPD, Canopy launched 11 new premium flower and PRJ products in Q1 FY2023 which resulted in brand share of Doja in the premium flower and PRJ segment increasing 13 bps to 2.1%.
Maintained share in the combined mainstream flower and PRJ segment with the introduction of 6 new mainstream flower and PRJ offerings in Q1 FY2023. Strong consumer demand for new flower strains increased the Tweed brand’s share of the combined mainstream flower and PRJ segment by 35 bps to 4.0% in Q1 FY2023.
Consumer demand for new Ready-to-Drink (“RTD”) beverage flavour extensions under the Deep Space and Tweed brand banners helped increase the Company’s share of RTD beverage category by 33 bps to 23%. The Deep Space brand maintained its #2 rank in the over 5 mg THC beverage category. Strong consumer demand for the Tweed portfolio of Iced Tea and Fizz beverages increased the Tweed brand’s share of the RTD beverage market by 136 bps to 10.4% and maintained the brand’s #1 market share rank in the under 5 mg THC beverage category.
Robust NPD pipeline including a combined 26 premium and mainstream flower and PRJ offerings expected in Q2 FY2023 secured 60 new listings across Alberta, Ontario and Quebec.
Medical cannabis revenues increasing, with multiple potential growth drivers
International medical cannabis net revenue doubled versus Q1 FY2022 driven primarily by strong sales in Israel and Australia. Sales force in Germany focused on expanding pharmacy network.
Critical focus of Canadian medical cannabis business on increasing veteran registrations through the Spectrum Veteran Care program.
Gains in distribution and sales velocity of BioSteel RTD drove record revenue in Q1 FY2023
BioSteel revenue in Q1 FY2023 increased 169% versus Q1 FY2022 with BioSteel RTDs achieving 21% ACV8, up from 3% in Q1 FY2022. Agreement secured with Walmart for product to blanket 2,200 stores across 39 states.
BioSteel entered partnership to become the Official Hydration Partner of the NHL and NHLPA. Sponsorship will provide the BioSteel brand with league-wide rink side marketing and product supply rights, retail activation rights, community engagement platforms, player marketing and activation rights.
U.S. THC Ecosystem continues to strengthen
Wana9 continued their North American expansion by entering Puerto Rico and Arkansas in addition to opening three additional states. Building on the success of its Optimals line, including Wana Optimals Fast Asleep, which ranks as the No. 1 Quick onset sleep gummie in North America, Wana has added a variety of new SKUs to a range of markets.
Acreage Holdings10 made strong progress in the first quarter of calendar 2022 with revenue increasing 48% year over year and delivered their 5th consecutive quarter of positive Adjusted EBITDA. In April 2022, Acreage commenced adult-use operations in New Jersey with their flagship brand, The Botanist, now available for adult-use consumers in multiple dispensaries in the state.
8
IRI data for the 4 weeks ended June 12, 2022.
9
Until such time as the Company elects to exercise its rights to acquire Wana Brands, the Company will have no direct or indirect economic or voting interests in Wana Brands, the Company will not directly or indirectly control Wana Brands, and the Company, on the one hand, and Wana Brands, on the other hand, will continue to operate independently of one another.
10
Until such time as the Company elects to exercise its rights to acquire Acreage Holdings, the Company will have no direct or indirect economic or voting interests in Acreage Holdings, the Company will not directly or indirectly control Acreage Holdings, and the Company, on the one hand, and Acreage Holdings, on the other hand, will continue to operate independently of one another.
First Quarter Fiscal 2023 Revenue Review
Revenue by Channel
(in millions of Canadian dollars, unaudited)
Q1 FY2023
Q1 FY2022
Vs. Q1 FY2022
Canadian recreational cannabis
Business to business11
$26.6
$42.7
(38 %)
Business to consumer
$12.4
$17.3
(28 %)
$39.0
$60.0
(35 %)
Canadian medical cannabis12
$13.4
$13.5
(1 %)
$52.4
$73.5
(29 %)
International and other
C3
$-
$11.4
(100 %)
Other13
$13.8
$8.0
73 %
$13.8
$19.4
(29 %)
Global cannabis net revenue
$66.2
$92.9
(29 %)
Other consumer products
Storz & Bickel
$15.6
$24.1
(35 %)
This Works
$5.5
$6.5
(15 %)
BioSteel14
$17.9
$6.7
169 %
Other
$4.9
$6.0
(18 %)
Other consumer products revenue
$43.9
$43.3
1 %
Net revenue
$110.1
$136.2
(19 %)
11
For Q1 FY2023, amount is net of excise taxes of $11.6 million and other revenue adjustments of $0.6 million (Q1 FY2022 – $17.8 million and $3.0 million, respectively).
12
For Q1 FY2023, amount is net of excise taxes of $1.2 million (Q1 FY2022 – $1.4 million).
13
For Q1 FY2023, amount reflects other revenue adjustments of $0.6 million (Q1 FY2022 – $0.4 million).
14
For Q1 FY2023, amount reflects other revenue adjustments of $1.7 million (Q1 FY2022 – $1.9 million).
Revenue by Form
(in millions of Canadian dollars, unaudited)
Q1 FY2023
Q1 FY2022
Vs. Q1 FY2022
Canadian recreational cannabis
Dry bud15,16
$38.6
$66.0
(42 %)
Oils and softgels15,16
$5.2
$5.7
(9 %)
Beverages, edibles, topicals and vapes15,16
$7.4
$9.1
(19 %)
Other revenue adjustments16
$(0.6)
$(3.0)
80 %
Excise taxes
$(11.6)
$(17.8)
35 %
$39.0
$60.0
(35 %)
Medical cannabis and other17
Dry bud
$14.2
$9.6
48 %
Oils and soft gels
$9.2
$20.5
(55 %)
Beverages, edibles, topicals and vapes
$5.0
$4.2
19 %
Excise taxes
$(1.2)
$(1.4)
14 %
$27.2
$32.9
(17 %)
Global cannabis net revenue
$66.2
$92.9
(29 %)
Other consumer products
Storz & Bickel
$15.6
$24.1
(35 %)
This Works
$5.5
$6.5
(15 %)
BioSteel17
$17.9
$6.7
169 %
Other
$4.9
$6.0
(18 %)
Other consumer products revenue
$43.9
$43.3
1 %
Net revenue
$110.1
$136.2
(19 %)
Canadian Cannabis
Recreational B2B net sales in Q1 FY2023 decreased 38% over the prior year period primarily due to the continuing impacts of price compression resulting from increased competition and lower sales in the value-priced dried flower category. These factors were partially offset by a more favourable product mix due primarily to a decrease in the volume of value-priced dried product sold compared to the prior year and a full quarter of net revenue contribution from Supreme Cannabis.
Recreational B2C net sales in Q1 FY2023 decreased 28% versus Q1 FY2022 largely driven by increased competition from the rapid increase in third party retail locations across provinces.
Medical net revenue in Q1 FY2023 decreased 1% from Q1 FY2022 driven primarily by higher average order sizes offset by a fewer number of orders.
International Cannabis
C3 revenue in Q1 FY2023 decreased 100% year-over-year as a result of the divestiture that was completed on January 31, 2022.
Other revenue in Q1 FY2023 increased 73% over the prior year period primarily due to bulk cannabis sales by Supreme Cannabis into the Israel medical cannabis market and increasing global medical sales including to Australia.
Other Consumer Products
BioSteel sales in Q1 FY2023 increased 169% over Q1 FY2022 in part due to continued growth in our distribution channels and sales velocities across North America and higher international sales.
Storz & Bickel vaporizer revenue in Q1 FY2023 decreased 35% over Q1 FY2022 due primarily to temporary disruptions with certain distributors and slowdown in consumer spending in North America and Europe.
This Works sales in Q1 FY2023 decreased 15% over Q1 FY2022 due in part to softer performance of certain product lines, which benefited during the period of COVID-19 restrictions in Q1 FY2022 and the phasing of orders for certain products in Europe to Q2 FY2023.
The Q1 FY2023 and Q1 FY2022 financial results presented in this press release have been prepared in accordance with U.S. GAAP.
15
Excludes the impact of other revenue adjustments.
16
Other revenue adjustments represent the Company’s determination of returns and pricing adjustments and relate to the Canadian recreational business-to-business channel.
17
Includes the impact of other revenue adjustments, which represent the Company’s determination of returns and other pricing adjustments.
cover now ? no way Hose .. ))) you , as usually come to conclusion to early ..
If you are shorting you should cover borys. If they pass safe banking in the US this will fly. It is not about their earnings this time. If they make any progress on reforms the whole industry is going to have a big big boost. Canada was just the appetizer for what will happen when the US goes federally legal. There is a bill to de schedule now and safe+ is being discussed. Not a good time to be short cannabis imo
hehehehehe .... big boys are selling , naive kids are buying .... artificial push up NEVER lasts long ..
I do not see any more " young " idiots ? .... without them the forum is boring .. )))
Canopy Church
Breeder Steve
@breeder_steve
The first block that I earned on twitter was from an HC advisor who was arguing in favour of potency caps on extracts, like a moron.
I was easily destroying his pathetic, and nonsensical, "points".
Can you imagine defending potency caps on extracts?
What a dumbass. ??
Breeder Steve
@breeder_steve
·
2h
I couldn't imagine building out and then waiting +/- a year for permission to start. The risk is a very expensive waiting period. Sunk capital on overkill like the MMPR vaults, was worth avoiding, imo. No direct sales? No way I wanted to be locked into selling through others.
Still relevant
OPINION
The goal of legalized cannabis shouldn’t be corporate gold
ALAN YOUNG
CONTRIBUTED TO THE GLOBE AND MAIL
PUBLISHED JULY 15, 2016
This article was published more than 6 years ago.
Alan Young is an associate professor at Osgoode Hall Law School at York University. He has worked with the federal government to recognize cannabis in the medical drug schedule and led a number of constitutional challenges on drug and morality laws.
For the past 25 years I have worked to change Canada's archaic legal approach to marijuana use. Having little faith in the political process and its partisan posturing, I turned to the courts and the Charter of Rights to challenge the constitutional validity of many laws that criminalize morally controversial activity among consenting adults.
Despite achieving enormous success in developing a constitutional protection for medical marijuana, the basic foundation of the marijuana prohibition remained intact after the flurry of court cases. Having grown weary of battle, I was thrilled when the Liberal party pledged to legalize marijuana in 2015. Of course, political promises are unenforceable and, in the past, being on the verge of reform often ended with a quiet re-entrenchment of the status quo. So my enthusiasm has been tempered by a strong dose of cynicism.
STORY CONTINUES BELOW ADVERTISEMENT
As the government crawls towards legalization with the appointment of yet another task force, my tempered enthusiasm has started to wane, replaced by dismay. Everywhere I look I see countless interested parties and stakeholders lining up to cash in on cannabis dollars.
Twenty years ago I predicted that cannabis would be legalized when governments and corporate entities realized the untold monetary treasures to be reaped upon legalization, just as gambling was legalized in the 1990s to reap billions of dollars in tax revenues. And now, licensed medical cannabis producers, drug stores, provincial governments, labour unions, marijuana dispensaries and predatory stock brokers all want a share of the market. Who can blame them? Cannabis is a capitalist's dream considering the unprecedented economic opportunity of a ready-made customer base of millions.
I have always seen marijuana as a benign and mild intoxicant, and the less state regulation the better. However, I understand that some Canadians, and the government, see greater risks, and it is unlikely we will enter a legal world of grow-your-own, share with friends and sell small amounts to others. Canada has a tradition of overregulation and one can already sense that the government is poised to place a myriad of restrictions on production and distribution. Invariably, the more complex the regulatory framework, the more likely the market will be overrun by multinational corporations, Crown agencies and the heroes of big business. This completely undercuts the 1960s idealism which spawned our taste for the uplifting effects of marijuana; however, idealism always plays second fiddle to the realism of money markets.
Of greater concern is the fact that this fixation on economic issues and models of distribution has obscured the basic justification for promoting legalization as a sound policy choice for Canada. At its core, legalization is premised on three interrelated beliefs: 1) the activity is not sufficiently harmful to warrant criminalization; 2) using the blunt instrument of the criminal law justice system to eradicate the activity has been proven to cause more harm than good; 3) the activity has become so prevalent that the law has been rendered ineffective.
So in moving down the road to legalization, the focus should not be on the mode of distribution and who will reap the economic benefit. Although this may be important to the venture capitalists and consumers, a more fundamental question must first be addressed by government: What should the proper legal response be to the multitude of pot consumers who have no interest in, and perhaps even an aversion to, corporate marijuana?
It must be recognized that a vibrant underground cannabis culture has been evolving for decades. If the government maintains the taboo on self-production and local dispensaries, there will remain hundreds of thousands of cannabis users and producers who will refuse to go to the liquor or drug store to purchase cannabis. If excluded from the new market, the underground will continue to flourish, and this government must decide what to do with the outliers. If the fallback position is that anyone who does not comply with the rules of the market must be dealt with by the criminal justice system, then we have not achieved legalization.
The outliers cannot be considered criminals solely for running the very same business operations sanctioned and exploited by the government and corporate Canada. If a basic premise of legalization is that the activity is not sufficiently harmful to warrant jail and a criminal record, it cannot be converted back into criminal conduct simply because it is being done without proper licensing. Of course, some type of regulatory offence will have been committed, akin to fishing without a licence, but once a government gives the legal seal of approval to an activity it loses the moral right to condemn and criminalize the renegades operating without a licence.
STORY CONTINUES BELOW ADVERTISEMENT
For the most part, the underground cannabis culture has been occupied by pot-heads so driven by their love of cannabis that they can carve a bong out of cucumber in thirty seconds or less. They are not a threat to our communities. If this government continues to demonize marijuana and perpetuate the myth that the cannabis community is overrun by criminals, then it is likely they will exclude this community from participating in the legalized world. In which case all we will have achieved is a money-making venture for some, while leaving most others to face criminal sanction for refusing to leave the comfort of their underground world. In other words, we will have achieved nothing.
Doomed!
Breeder Steve
@breeder_steve
·
8h
A sobering statistic, that currently 47% of Canadian businesses in bankruptcy are from the cannabis industry. This abnormality is squarely on the abysmal over-regulation by the pinkos in Ottawa.
The costs of compliance are astronomically high.
It's too much.
Business
Cannabis giant Canopy Growth posts $2B quarterly loss
Social Sharing
Facebook
LinkedIn
Twitter
Email
Reddit
Most of the profit plunge came from a writedown but sales were down, too
The Canadian Press · Posted: Aug 05, 2022 12:45 PM ET | Last Updated: August 5
Canopy Growth Corp. says its cannabis sales fell 38 per cent since last year. (Sean Kilpatrick/Canadian Press)
91
comments
Canopy Growth Corp. executives argued the company is advancing toward profitability, even as it booked a $1.72 billion non-cash writedown that contributed to a net loss of more than $2 billion during its most recent quarter.
"Maybe our aspirations have changed over the last several years, but we believe that we can get ourselves, with the right focus in the right categories, to a profitable business that's not burning cash in the Canadian market," said CEO David Klein, on a call with analysts.
"I don't want anybody to think that we're not spending almost all of our waking hours on...stopping the cash burn in Canada."
His remarks came as the Smiths Falls, Ont. company behind the Tweed, Tokyo Smoke and Doja brands said Friday that its first quarter net loss compared to net earnings of more than $389 million at the same time last year.
The impairment charge for the period ended June 30 was linked to Canopy's pot operations and came as its recreational business-to-business cannabis sales fell 38 per cent since last year because of price compression and increased competition.
Canadian cannabis stocks pop on U.S. legalization push and GameStop-style short squeeze
"The Canada market has really developed very differently than we had initially expected," Judy Hong, chief financial officer, admitted on a call with analysts.
She named market fragmentation, the strength of the illict market and regulatory hurdles, including a slow move toward federal legalization in the U.S., as the company's biggest challenges.
Such conditions have prodded Canopy into refocusing its product mix on the premium sector, which typically commands higher prices and generates a more loyal consumer basis than value items.
Cost-cutting plans
The move toward premium has been coupled with an ongoing cost-cutting plan involving retooling its facilities, reviewing procurement strategies, implementing flexible manufacturing processes and reducing third-party professional and office fees.
As part of the plan, 243 Canopy workers spanning Canada, Europe and the U.S. lost their jobs in April, the latest in a string of layoffs Canopy and its rivals have carried out during the COVID-19 pandemic.
Canopy anticipates its moves will create between $100 and $150 million in savings within a 12-to-18 month range and — like a series of other cannabis companies who have embarked on overhauls recently — help it reach profitability by better aligning supply with demand.
But many barriers stand in the way of this goal.
Hexo to acquire cannabis competitor Zenabis in $235M deal, aiming for European expansion
In the most recent quarter, Canopy's largest U.S. distributor faced financial challenges causing it to pause orders and the company is now having to work to reestablish ordering patterns that were lost, Hong said.
Consumer spending power is also softening as Canada encounters a near 40-year high inflation level mirrored by several other countries. Increased inflation has already moderated European and North American premium vaporizer sales, Hong said.
Supply chain challenges from previous quarters have stuck around too and been an issue for its Storz and Bickel vape brand in particular.
"Our procurement, engineering and manufacturing team are working hard to identify solutions for these challenges, including alternate components and suppliers and we expect this to be manageable," Hong said.
U.S. legalization still looms
While Canopy works to address these issues, Klein added that it is still keeping an eye on the U.S.
In recent weeks, Senate Majority Leader Chuck Schumer introduced the Cannabis Authorization and Opportunity Act, which could help federally legalize marijuana, though observers aren't hopeful it will be enacted.
"There's no doubt that we put heavy emphasis on the U.S. market, which is evolving... more slowly than we would like," said Klein.
He noted that two thirds of Americans already live in a location that has access to cannabis in some format, "but the federal government still refuses to recognize that reality."
"So putting that aside...we're not waiting," he said. "We continue to see the U.S. is the largest and most important market in the world."
To advance its U.S. strategy, Canopy signed a deal to acquire edibles company Wana Brands, if Canada's neighbour moves to allow a key pot component.
Canopy has made similar arrangements with TerrAscend Corp. and Acreage Holdings Inc. and deepened its U.S. presence by launching four sparkling cannabidiol waters under the Quatreau name across the border in March 2021, adding to the roster of Martha Stewart, BioSteel and This Works products it already sells in the U.S.
The company's first quarter net loss amounted to a loss of $5.23 per diluted share compared to a loss of 84 cents per share in the second quarter of 2021.
Analysts expected the company to report a net loss of $111.6 million US or 28 cents per share, according to financial data firm Refinitiv.
Net revenue for the period amounted to $110.1 million US, down 19 per cent from $136.2 million US in the same quarter last year.
Following the release of those figures, Canopy's share price dropped about 40 cents or 11 per cent to $3.29 as the stock market opened. By mid-morning, it was trading at $3.42.
Business
Cannabis giant Canopy Growth posts $2B quarterly loss
Social Sharing
Facebook
LinkedIn
Twitter
Email
Reddit
Most of the profit plunge came from a writedown but sales were down, too
The Canadian Press · Posted: Aug 05, 2022 12:45 PM ET | Last Updated: August 5
Canopy Growth Corp. says its cannabis sales fell 38 per cent since last year. (Sean Kilpatrick/Canadian Press)
91
comments
Canopy Growth Corp. executives argued the company is advancing toward profitability, even as it booked a $1.72 billion non-cash writedown that contributed to a net loss of more than $2 billion during its most recent quarter.
"Maybe our aspirations have changed over the last several years, but we believe that we can get ourselves, with the right focus in the right categories, to a profitable business that's not burning cash in the Canadian market," said CEO David Klein, on a call with analysts.
"I don't want anybody to think that we're not spending almost all of our waking hours on...stopping the cash burn in Canada."
His remarks came as the Smiths Falls, Ont. company behind the Tweed, Tokyo Smoke and Doja brands said Friday that its first quarter net loss compared to net earnings of more than $389 million at the same time last year.
The impairment charge for the period ended June 30 was linked to Canopy's pot operations and came as its recreational business-to-business cannabis sales fell 38 per cent since last year because of price compression and increased competition.
Canadian cannabis stocks pop on U.S. legalization push and GameStop-style short squeeze
"The Canada market has really developed very differently than we had initially expected," Judy Hong, chief financial officer, admitted on a call with analysts.
She named market fragmentation, the strength of the illict market and regulatory hurdles, including a slow move toward federal legalization in the U.S., as the company's biggest challenges.
Such conditions have prodded Canopy into refocusing its product mix on the premium sector, which typically commands higher prices and generates a more loyal consumer basis than value items.
Cost-cutting plans
The move toward premium has been coupled with an ongoing cost-cutting plan involving retooling its facilities, reviewing procurement strategies, implementing flexible manufacturing processes and reducing third-party professional and office fees.
As part of the plan, 243 Canopy workers spanning Canada, Europe and the U.S. lost their jobs in April, the latest in a string of layoffs Canopy and its rivals have carried out during the COVID-19 pandemic.
Canopy anticipates its moves will create between $100 and $150 million in savings within a 12-to-18 month range and — like a series of other cannabis companies who have embarked on overhauls recently — help it reach profitability by better aligning supply with demand.
But many barriers stand in the way of this goal.
Hexo to acquire cannabis competitor Zenabis in $235M deal, aiming for European expansion
In the most recent quarter, Canopy's largest U.S. distributor faced financial challenges causing it to pause orders and the company is now having to work to reestablish ordering patterns that were lost, Hong said.
Consumer spending power is also softening as Canada encounters a near 40-year high inflation level mirrored by several other countries. Increased inflation has already moderated European and North American premium vaporizer sales, Hong said.
Supply chain challenges from previous quarters have stuck around too and been an issue for its Storz and Bickel vape brand in particular.
"Our procurement, engineering and manufacturing team are working hard to identify solutions for these challenges, including alternate components and suppliers and we expect this to be manageable," Hong said.
U.S. legalization still looms
While Canopy works to address these issues, Klein added that it is still keeping an eye on the U.S.
In recent weeks, Senate Majority Leader Chuck Schumer introduced the Cannabis Authorization and Opportunity Act, which could help federally legalize marijuana, though observers aren't hopeful it will be enacted.
"There's no doubt that we put heavy emphasis on the U.S. market, which is evolving... more slowly than we would like," said Klein.
He noted that two thirds of Americans already live in a location that has access to cannabis in some format, "but the federal government still refuses to recognize that reality."
"So putting that aside...we're not waiting," he said. "We continue to see the U.S. is the largest and most important market in the world."
To advance its U.S. strategy, Canopy signed a deal to acquire edibles company Wana Brands, if Canada's neighbour moves to allow a key pot component.
Canopy has made similar arrangements with TerrAscend Corp. and Acreage Holdings Inc. and deepened its U.S. presence by launching four sparkling cannabidiol waters under the Quatreau name across the border in March 2021, adding to the roster of Martha Stewart, BioSteel and This Works products it already sells in the U.S.
The company's first quarter net loss amounted to a loss of $5.23 per diluted share compared to a loss of 84 cents per share in the second quarter of 2021.
Analysts expected the company to report a net loss of $111.6 million US or 28 cents per share, according to financial data firm Refinitiv.
Net revenue for the period amounted to $110.1 million US, down 19 per cent from $136.2 million US in the same quarter last year.
Following the release of those figures, Canopy's share price dropped about 40 cents or 11 per cent to $3.29 as the stock market opened. By mid-morning, it was trading at $3.42.
I said a few days ago and we see this today .... lower revenue and a big loss ....
what next ? steady drop to $1.5 - $2 .... very soon ...I shorted at $3.75 and it was a nice step ..
Matt Lamers ????
@matt_lamers
47m
UPDATED: Canopy Growth has lost almost $6 billion selling cannabis since 2015.
Losses for years ended March 31:
2015: $9.3M (15 months)
2016: $3.5M
2017: $7.6M
2018: $67.3M
2019: $712M
2020: $1.4 billion
2021: $1.7 billion
2022: $320.5M
2023: $2.1 billion (1Q)
Matt Lamers ????
@matt_lamers
Canopy is now the biggest money-losing machine in the cannabis industry, surpassing Aurora, which has lost approx. $5.4 billion.
The 2 businesses together have lost well over $10 billion.
They're also the 2 most subsidized cannabis producers in the world, courtesy
Matt Lamers ????
@matt_lamers
Why has Canada been HEAVILY subsidizing cannabis production for 2 producers amid a massive, historic glut of cannabis production?
To save jobs! How many jobs were saved? They permanently laid off A LOT of people! #cdnpoli
1:46 PM · Aug 5, 2022·Twitter Web App
Matt Lamers ????
@matt_lamers
·
30m
Replying to
@matt_lamers
Pro tip for pro stock analysts: Canopy's 2nd biggest problem is they embarked on a "deliberate business transition to focus on higher margin, premium" cannabis"
Problem with that is it puts them head-to-head with micro, who let's be Frank, are much better at this sort of thing.
Canopy's biggest problem (since no one asked) is they can't sell budget cannabis either.
All part of this trend: The biggest Canadian cannabis producers, as a whole, sell only a fraction of their production.
.
It,s called being DOOMED!!!
Your DADDY since 2014... and counting.
Please do not listen to a Russian Bot.
Remember that Happy loves the management team...
Dorothy digs Martha.
CGC has Snoop on their team.
Time to purchase shares.
Followers
|
665
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
128526
|
Created
|
03/18/14
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |