Lp,s are doomed!
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Will US Grown Marijuana Even Exist in 10 Years?
Costs such as labor, electricity, and tariffs may have already doomed the US cannabis industry
Posted by:
Thom Bonno on Wednesday Oct 20, 2021
Will American Grown Marijuana Even Exist in 10 Years?
colombia cannabis costs
Costs of labor, water, electricity, and tariffs may all signal an unfair market for US marijuana growers.
The US cannabis industry’s final chapter has already been written before it even began! While the US cannabis industry anxiously waits for Federal legalization, presumably the beginning of a new age of marijuana, the final chapter has already been written, taken from a book we have read many time before.
Wait, what? I thought the US marijuana industry was just starting, how can it be over? So soon?
The US cannabis industry has a “US” problem. The high cost of labor, water, electricity, possibly tariffs, and taxation on exports could make the cannabis industry look a lot like the auto industry and manufacturing. It is just to darn expensive to grow marijuana in America compared to the rest of the world.
One interesting fact from the recent Benzinga cannabis conference was that the price of growing cannabis is constantly coming down as people look to improve margins and efficiency. The lights get better, the soil gets better, the drying systems get better, but in the end the costs associated with doing business in America present a daunting task to the US cannabis industry.
One new up-and-coming in the international cannabis scene is Colombia. South American countries create a nice “sweet spot” for growing cannabis due to their moist climate, lack of Winters, and cheap labor forces. The stunning numbers I saw during Luis Merchan’s presentation at Benzinga showed that his company, Flora, can grow a gram of cannabis for $0.60. That is before Colombia gets a few years under their belt in experience, better lights, seeds, soil, and techniques. The cost to grow a gram of marijuana in North America is between $1.50 and $2.35. Public reports show Canadian company Aprhia spends $1.85 to grow one gram of marijuana, while Tilray spends $2.36 a gram of produced flower.
colombia growing conditions
What happens when Colombia, let alone Brazil, Costa Rica, Uruguay, etc., gets good at this stuff in 2 years? Will they bring costs down to $0.03 a gram?
The problem that could happen with full legalization in the US, and then around the world, is that low-cost cannabis producing countries can flood the North American markets with good, low-cost, marijuana. Remember too, that Colombia is a developed, and semi-affluent South American country, when poor countries with lower cost of living standards start exporting, the amount of outdoor grown high-quality cannabis could flood markets in Asia (think Cambodia and Thailand), North America (think Colombia, the Caribbean, Brazil), and Europe (think North Africa’s labor costs).
Even if all cannabis growing moved out of high-cost states like California and Colorado and moved to low-cost manufacturing and agricultural states like Alabama and Mississippi, the minimum wage is still $7.25 an hour. The minimum salary in Bogotá Columbia for a month is $500. With even lower-cost workers in the US, the difference is stark, $72.50 a 10-hour day in Alabama and $15 dollars a day roughly in Colombia.
The cost of water in the US is much more expensive in cannabis grow areas than in South America, and while electricity is more expensive on islands and smaller areas than in the US, much of South America can grow year-round crops outdoors and never have to turn on a single grow light. Colombia also recently approved exporting home-grown cannabis, as well.
I don’t see a day when a Senator stands up and wants to put a large tariff on imported cannabis and marijuana to “protect our US cannabis farmers!”. That would means exported US cannabis would face tariffs, hence raising the price even more, and it’s counter-party imports would most likely face little or no tariffs.
So where does that leave the US cannabis industry? The US can’t compete on labor, electricity (with few exceptions that get to grow outdoor all year anyway), water costs, and government lack of support. At some point economics and maximizing margins will dictated that all our oils and edibles are made from non-US or Canadian weed. Will it get to a point where places like the Emerald Triangle have to compete on price? What if their pre-roll is $12 and a similar pre-roll from El Salvador is $2. Are you willing to “buy American” even at 6 to 10 times the cost?
Time will tell, but if cannabis is like the hundreds of worldwide industries before it, US weed may be outsourced.
COLOMBIA CAN BE A MAJOR MARIJUANA PLAYER, READ MORE..
COLOMBIA EXPORTS CANNABIS
COLOMBIAN CANNABIS EXPORTS BEGIN? THEY ARE COMING!
OR..
COLOMBIAN CANNABIS EXPORTING
WHY THE WORLD BETTER WATCH COLOMBIA FOR MARIJAUANA!
"No matter how much they pay stoned trolls and lobbyists, black market cannot access legal markets with mildewed cash-only deals. The best is yet to come"
Young`Wild&Fluffy
fluffy is now a black market expert
data shows cannabis.inc dealings are internet transactions or Chinese banks or bitcoins...)
farmer,s inc are mainly bank transfers or bank money
bonehead is not up to par in the cannabis world
bulk of black market canna production today is done individually
there is an amazon.ca complete tent delivered in 2 days PRIME
dude buys his black market seeds from ANYWHERE in the world-in-a-clic
at scale canna growing is not for rookies
Croptober as been good to our Cannadian farmers
Lp,ees are done
You are correct happy...
black market is going bankrupt!
LPees,s are rolling in the dough...
Latest Bloomberg poll reads :
"Black market cannabis sales has dropped from 39% to 3%."
Main reason why judges are routinely walking farmers when faced with million dollar bust.
Crappy Growth is the biggest Canadian cannabis company.
Sales are through the roof and shareholders are quite happy.
I will buy more shares as funds become available.
WEED$$$!!!WEED$$$~~~WEED~~~WEED~~~$$$~$~$$$$~WEED TO THE MOOOON!!!
i am not a yes man
take your looser advise and stuck it up your sorry doomed ass
sing us a bag holder song
you are doomed but your are not aware of it just yet
looser
you are paying too much for that dog
That Ponzi will eventually pop making you a bag holder
better buy when they go belly up
save big then
Sinking Twister
twistingRED
Say what?
You prefer inside?
They got your back...
Cannabis Growing In Canada.
But... but..where are the security-cameras?
The 65-million-dollar Fort-Knox-Cat9-Safe?
The Barb-Wire-Fencing?
No need for that shit when dankness is the mood...
Enough talking but.THAT DOLLA NEEDS TO BE HARVESTED!!!
He does,nt need $$$, dude was a millionnaire at 30.
Knowledge is power.
You have to know the cannabis market inside out.
Ad 6000 hours of accademic canna studies.
Having travelled in 65 canna producing countries for the past 50 years.
Also having obtained one of the first Health Canada licence to grow dank buds (in 2001).
Knowledge is power.
LP,s are doomed but you don,t know it yet.
Give it a little time...
Stock market weed is a Charles Ponzi affair.
Eventually designed to fail by Bill Blair.
The global weed market is OVER SATURATED!
Just curious... who are the canna CEO making minimum wages?
Gerber want to broker more shares...What else is new?
If he tells the truth, he will not last long.
Crappy Growth is a big EMPTY SHELL.
They don,t know what to do. Not knowing what the culture wants.
CEO is smiling all the way to the bank vs suckers & bag holders.
Meanwhile, in real life, Croptober is happening and it,s a doozy...
The entire world canna market is over saturated!!!
Stock market bunk weed is DOOMED
They are all FUCKED!!!
Overcrowded Africa,s canna market.
“Independent Entity” With Canopy Roots Launches Contract Farming in Lesotho
By Nyasha Bhobo - Special To Cannabis Culture on January 31, 2021
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CANNABIS CULTURE – Highlands Investments (formerly Canopy Africa) has launched Africa´s cannabis contract farming platform called Canna-Tract.
Whether this is canna-colonialism or a secure platform for Africa’s cannabis cultivators has yet to be determined.
Name-changing spree
Canopy Growth, a Canadian cannabis corporation headquartered in Ontario, and formerly called Tweed Marijuana Inc, has now assumed the name Highlands Investments.
Mark Corbett, the managing director of Highlands Investments explained the name-changing spree in an email interview with Cannabis Culture.
“Highlands Investments was formerly Canopy Africa, however it is no longer part of The Canopy Group. In 2017, Canopy Growth exited its operations in South Africa and Lesotho as part of a strategic review of its businesses. This resulted in a transfer of ownership of all of its African operations to Highlands Investments in April 2020,” says Corbett.
Canna-Tract is not yet a registered patent but plans are underway to ring fence the trademark in Lesotho and South Africa. The Canna-Tract grow model is only available in Lesotho, added Corbett, revealing the location of the enterprise.
Hopeful contractees confused?
Farmers and entrepreneurs interested in joining the Canna-Tract program might be unsure where they fit in the arrangement because Highlands Investments specialists (engineers, agronomists) are taking total care of the growing, planting, harvesting. It may sound like clients are merely entrepreneurs working for Highlands with no autonomy on how they want to operate.
Corbett, the managing director clears the mist and states: “Our customers appoint Highlands Investments to grow their genetics on their behalf. They utilize our facilities, staff, certifications and license to generate flower to meet their supply needs.”
Still it´s vexing to really know who owns the the medical cannabis planted– clients or Highlands?
“The plants are owned by our customers, however they are only released to the customer once full payment has been received by Highlands Investments,” says Corbett. Customers appoint Highlands Investments to grow their genetics on their behalf. They utilize the company´s facilities, staff, certifications and license to generate flower to meet their supply needs.
Highland Investments Lesotho facility
Growing without license
In a few African countries where cannabis cultivation has been legalized, licensing is strict and laws are still blurred. For example, in nearby Zimbabwe, growers must first obtain authority from government, cough up $40 000 for ´license fee´, $15 000 per annum ´annual levy´ and a further $5000 if the initiative involves cannabis for scientific research purposes.
Despite this general climate of strict African cannabis-cultivation laws, Highlands Investments says that Canna-Tract enables its growers to work without first obtaining a license.
How then can Highland Investments help growers’ plant without licenses in jurisdictions where licenses are required? “Highland Investments holds a 200Ha Medical Cannabis license in Lesotho,” says Corbett. “Our customers are therefore able to grow their genetics in our facility, using our infrastructure and staff as well as our cannabis license. This means that the cannabis is grown under Highland’s 200Ha license in Lesotho.”
Customers pay for contract
The traditional arrangements with cash-crops contract-farming across Africa, (Usually tea, tobacco or cotton) are that foreign corporations or banks from China or Europe lend money to local farmers. Upon harvest, farmers sell their produce strictly to loan-advancing companies for an agree mark-up price.
But Highlands Investments is taking an opposite approach. It won´t offer advance finance to growers joining its Canna-Tract program. “No,” Corbett confirms. “Customers’ pay for the contract grow services by month with final payment being made once the product is harvested, packed and ready to ship.”
Also in the event of the plants getting spoiled before harvest, growers will soak their own losses. As Corbett says, “we do not insure the crops in the ground.”
Guarding against theft
Cannabis plants and flowers are fragile and vulnerable to weather elements or outright theft by organised crime syndicates. In this regard, Highland Investments will individually each plant to make sure there is electronic tracking of each seed through to final package to ensure integrity, quality and traceability.
Canopy Growth loses billions for investors?
Canopy Growth which gives birth to Highlands Investments is quite a storied corporation. Critics say, Canopy Growth in North America has been a total debacle. It has lost billions of dollars in investor funds. In 2020, the respected stocks publication Motley Fool wondered if Canopy Growth will go bankrupt after its investors were astonished to learn that the pot producer had posted a whopping $1.3 billion net loss for its fourth fiscal quarter. In December 2020, the corporation had to let go 200 workers as a cost cutting measure, its chief executive David Klein, told the Canada Broadcasting corporation.
Somehow the company continues to be bailed out.
“I am not in a position to comment on this,” says Corbett. “What I can say is that Highlands Investments is an independent entity, as of April 2020. It is not part of The Canopy Group.”
Doomed!
CANNABIS CULTURE – Some critics worry this could be an “over-reach.”
Cilo Cybin bills itself as the first firm to win a full cannabis license in South Africa. Their intriguing name reflect the active ingredient in mushrooms that gives one a “magical” feeling.
But with a basketful of plans to exploit Durban Poison, a unique South African cannabis strain; bio-hacking; branding; cultivation; dual IPOs, some critics feel Cilo Cybin is emblematic of the dilemma of South Africa´s cannabis startups: doing too much at once, too fast.
Intriguing name
“We are currently a South African cannabis company in the process of becoming a multinational. We have other entities registered in Panama, and the Netherlands. Our roots started in South Africa, from there we branched out,” Gabriel Theron its chief executive tells Cannabis Culture of their dual intention to do an IPO at home in South Africa, and possibly another one in Luxembourg in Europe in 2022.
Cilo Cybin is the active ingredient in magic mushrooms, and Theron says he picked up this name because they were looking for words or phrases that got something to do with magic to differentiate themselves in the increasingly competitive $1, 9 bn South Africa cannabis market, which could one day become the largest in sub-Saharan Africa.
“Full cannabis license”
Whilst South Africa has largely legalized the cultivation, processing and export of cannabis, the meaning of a “full cannabis license” in South Africa is a bit confusing for would-be investors, especially outsiders.
“You must understand two things about South Africa,” explains Theron. “On one side is an agricultural license that allows you to cultivate cannabis and to export bulky raw material. The second thing is a good manufacturing practice license that allows further process cannabis, flour packaging, oil, a whole range of products.”
This is the meaning of full-cannabis license in the South African context.
He contrasts this with North America particularly the US which he argues, a lot of their cannabis brands are landlocked which means if they produce products from cannabis, they are not allowed to move across state lines or easily go global.
Overstretching themselves?
Buoyed by its “full license” Cilo Cybin wants it all: cultivating Durban Poison, a cannabis strain unique to the Southern African climatic and soil environment; wanting to process it into medicines; exports; partnering with American brands in a way that allows them to be distributors of their products thus assisting them to enter markets like South Africa; planning dual listings on South Africa exchanges and possibly European ones; operating an indoor facility where the environment is controlled, and a processing facility for cannabis where labelling and branding is applied to finished products.
“This is a brilliant full throttle exploitation of the cannabis value chain idea, from farm harvest to shop product, but the weakness is cannabis startups in South Africa are overstretching their abilities,” argues Dennis Juru, president of the Africa Cross boarders Trading Association which lobbies for uniforms cannabis trade rules across countries in the southern part of Africa.
“A major weakness of South Africa´s cannabis startup is they are trying to be everything at once, and too quick: cultivators, cannabis-beer manufacturers, medical-cannabis capsule makers, cannabis chocolate exporters. It tells me the industry is still in confusion and players are not yet sure where the big money along the cannabis value chain. Hence the take-all mentality rather than specialize in one aspect of cannabis.”
But Theron counters that doing a lot at one time is ultimately a wise strategic decision when it comes to South Africa´s cannabis scene because the future of cannabis is not a single outcome. “Our aim is to go all the way because the guys that gonna survive cannabis business in the long run are the brands and not necessarily just the farmers,” Theron says.
Specialist cannabis skills dilemma
As cannabis startups in South Africa adopt hi-tech cultivation methods like the controlled climate indoor facilities, such as Cilo Cybin runs, sourcing highly skilled workers (thermal technicians, agroecologists etc.) will get problematic. According to Reggie Ngcobo, the spokesperson for South Africa’s agriculture minister, South Africa has about 25 000 cannabis workers, but the majority are low-skilled laborers such as leaf pickers and weed packers.
“There´s a rapid interest setting up hi-tech cannabis facilities in South Africa with an eye at supplying Europe´s medical cannabis importers just like nearby Lesotho is doing but finding local specialist skills South African workers and paying them premium salaries is the Achilles heel,” says Carter Mavhiza, an independent public accountant in Johannesburg.
“With all respect I don’t believe our South Africa cannabis startups are at a stage where they can afford to pay competitive salaries for specialist skills.”
Sourcing specialist skills is something Cilo Cybin grapples with too, as it runs an indoor growing facility that produces 220 pounds of cannabis flour a month, 6 harvests per year, controlling light, and humidity as a way to get a refined end product that meets strict EU standards.
“Just like elsewhere globally, cannabis was previously a legally stigmatized industry, this has not been a legal market in the past in South Africa too, and now it´s permitted, and there is a lot of research that needs to go into this,” Theron says.
However, Cheeba Africa, a South Africa cannabis startup, has launched what it calls Cheeba Cannabis Academy, Africa´s first specialist skills school for cannabis training hoping to roll out graduates who have a deep grasp of the medicinal and pharmaceutical side of cannabis processing.
This is a silver lining: “I think (the stigma and skills shortage) it is changing for the better,” sums Theron.
But happy loves the management team...
and she wants to become a millionnaire.
She,s bold and bright.
Hey happy grab them crappy growth shares before n0ne,s left.
Canopy Growth to report weaker sales as profit hopes fade: analysts
Jeff Lagerquist
Jeff Lagerquist
Wed., October 6, 2021, 9:56 a.m.·2 min read
Analysts are taking an axe to their sales forecasts for Canopy Growth (WEED.TO)(CGC) amid fading expectations for the pot giant's goal of turning a profit within the next three quarters.
In August, the Smiths Falls, Ont.-based company said its shrinking slice of Canada's recreational market was the result of temporarily closed pot shops during the pandemic, competition from small producers with potent products, and "internal supply and execution challenges."
The reopening tailwind has been weaker than anticipated, according to BMO Capital Markets analyst Tamy Chen. She says September retail sales for Ontario, British Columbia, Alberta and Saskatchewan ticked up just three per cent on a monthly basis. Canopy's sell-through, what consumers buy from stores and online, fell 15 per cent month-over-month, according to the data sourced from HiFyre.
Chen slashed a "sizeable" $42 million from her second-quarter sales estimate for Canopy in an Oct. 4 note to clients, lowering her forecast to $130 million from $172 million. She's not alone in her pessimism. Piper Sandler analyst Michael Lavery lopped $35 million from his outlook for the quarter ended Sept. 30, dropping his estimate from $168 million to $133 million on Sept. 17. Cantor Fitzgerald analyst Pablo Zuanic called for revenue of $135 million on Sept 20.
"[Canopy] has dual headwinds in Canada, as single-strain, high-THC products, where Canopy is under-represented, are gaining share," Lavery wrote in a research note. "Pricing from intense competition for recreational use products also looks like a bigger drag than we had anticipated."
Analysts surveyed by Bloomberg expected Canopy to report $147.8 million in second-quarter sales, and an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $47.7 million, as of Tuesday afternoon.
Canopy has promised to achieve positive adjusted EBITDA by the end of its current fiscal year. Chief financial officer Mike Lee has said $250 million in quarterly revenue is the company's "North Star . . . where profitability starts to become within the crosshairs."
"We consider [this] very difficult to achieve," Lavery wrote. "To reach Canopy's profitability target, it will need market-leading growth in its new products and require execution improvement, which was cited several times as a headwind."
Zuanic expects Canopy will not turn a profit until the June 2023 quarter (fiscal Q1 2024), and does not see the company's sales hitting $250 million in his projections through the 2024 fiscal year.
Toronto-listed Canopy shares have fallen more than 48 per cent year-to-date. The stock closed up 3.38 per cent at $16.82 per share on Tuesday.
Zuanic maintains a "neutral rating" on Canopy shares, and a price target of $21. Chen maintains a "market perform" rating, and a price target of $25. Lavery maintains a "neutral" rating, and a price target of US$15 on the company's Nasdaq-listed stock.
Ponzi Linton still kicking but Crappy Growth will not survive.
Overcrowded market with no legal money to be made selling canna.
Happy is still pumping USA.
But little does she know, it,s also an overcrowded red market.
When will she face reality?
When the CEO of a California marijuana retail chain sued the state in September over so-called “burner distribution licenses,” he focused a spotlight on an issue that many in the state’s cannabis industry are loathe to acknowledge:
Many of the state’s licensed marijuana businesses are bending or breaking the rules – and have been since California’s legal adult-use market launched in 2018 – because there’s so little profit to be had by operating lawfully.
That’s an allegation leveled by numerous industry officials. Such activity has been something of an open secret for years, but the “burner distro” lawsuit has given insiders cover to discuss more openly.
“The simple answer on what gave rise to (burner distribution licenses) is: Legal operators are trying to find ways to survive. That’s been made very clear to me over the last several years,” said Adam Spiker, the executive director of the Southern California Coalition, a Los Angeles-based cannabis trade organization.
Spiker said high taxes and the ever-present underground market are the most obvious reasons for the lack of profitability, but the obviously shrunken penalties for breaking the law are a big factor as well, since legalization made it easier for the underground market to operate without fear of serious reprisals.
“The legal operator cannot compete doing things fully above board,” he said. “That’s a huge part of it. But there’s virtually no risk for people to do it completely outside the legal realm.”
The burner distro lawsuit – filed by Elliot Lewis, CEO of Catalyst Cannabis Co. – alleges that criminals have been legally buying cannabis distribution licenses by using “front men” to disguise their true identities and intentions.
The suit also claims the rogue distributors are using the licenses to buy vast amounts of legally grown marijuana at wholesale prices and then selling the product inside or outside California through unlicensed channels – a move that undercuts legal retailers and other cannabis businesses.
Lewis’ suit, filed Sept. 15 in Orange County Superior Court, also charges that state officials have ignored the actions of those who hold the burner distribution licenses.
The phrase burner distro is an offshoot of so-called “burner” cell phones, which are intended for short-term use before being discarded.
Spiker and other industry officials say many licensed marijuana companies running burner distro operations are being taken advantage of by third-party actors who had no intention of operating in the legal market.
But industry insiders also contend that many of these licensed marijuana entrepreneurs feel they’ve been given a simple choice because of the state’s harsh business landscape: Break the rules or watch your business die.
“The real takeaway from the burner distribution licenses is that the state’s regulatory framework makes it nearly impossible for legal operators to be profitable. And until that framework changes, illegal activity will continue to exist,” said Hirsh Jain, founder of Los Angeles-based consultancy Ananda Strategy.
Jain added that the current California landscape retains “elements of prohibition,” including:
Ongoing marijuana retail bans in more than two-thirds of municipalities and counties.
High state and local taxation for legal cannabis.
High compliance costs for businesses of all sizes.
“The barriers to entry are such that this is de facto prohibition, even if it’s not prohibition in name,” Jain said. “The real way to mitigate the illegal market is to discard those elements of prohibition.”
California’s Department of Cannabis Control (DCC) is the primary defendant in Lewis’ lawsuit, which asks a judge to force the agency to remedy the situation.
DCC officials, citing agency policy, have declined to comment on the suit. Nicole Elliott, the head of the DCC, declined to comment for this story.
Bending or breaking the rules
Multiple industry insiders guesstimated that anywhere from a third to more than 70% of the state’s thousands of licensed marijuana businesses have been skirting rules in various ways, including offloading legal cannabis into the illicit market through burner distributors.
Couple that with a broad lack of industry oversight and enforcement, industry insiders said, and it’s little surprise that burner distributors have become so widespread.
“I call it a pressure relief valve,” California marijuana consultant Jackie McGowan said. “The industry would be in chaos if it weren’t for this.”
Johnny Delaplane, the president of the San Francisco Cannabis Retailers Alliance, said it’s nearly impossible for many companies to make enough money doing business 100% by the book.
As one example, Delaplane said a company with 20 workers might have to devote three highly paid employees to comply with the state’s seed-to-sale software tracking system, Metrc.
“(Retailers’) margins are anywhere from 1%-5%, net income. At the best stores, really high volume, you might be able to get to 7%-8%,” Delaplane said.
He added that many burner distributors have been “supporting people in the industry that otherwise would be failing, and their businesses would be dying.”
Delaplane said the chokepoints for profit and loss are different for each vertical but, across the supply chain, it’s a similar story.
The same apparently holds true in the Emerald Triangle in Northern California.
But one licensed grower from Humboldt County, who requested anonymity to speak candidly, said most small farmers aren’t bothering to use burner distributors to solve their financial woes.
Instead, they’re following the legacy trafficking practices that were common before California legalized adult use in 2018 and simply marking cannabis as destroyed in the state track-and-trace system. But, in reality, the crops are being shipped across state lines to prohibition markets.
And while those farmers might not be relying on burner distributors, the underlying issue is the same: The business landscape makes it tough for legal companies to be profitable.
“I do not know anyone, not one of them, that has sold legitimately on the (legal) market this year for a profit,” the farmer said.
“Most of them, if not all of them, have taken the weed from last year … and then sold it out of state, because we have no other choice.”
On top of that, McGowan, a longtime industry consultant, said she’s been hearing of social equity program licensees winning distribution permits and then turning around and selling them to underground operators, often with the full knowledge that those licenses will be used as burner distros.
“The social equity programs are completely preyed upon for this license,” McGowan said.
“They look at this system as reparations and thought, ‘I’m going to go get me this golden ticket and get paid.’ … You’re willingly allowing someone to use your name to break the law. And some of them are so desperate, they’re like, ‘I don’t even give a s***.'”
What can be done?
Spiker said state regulators have known about the problem of burner distribution licenses for more than a year, because he’s been telling officials about it and trying to develop a workable solution.
Spiker has not hammered out an agreement. But he remains hopeful the DCC, state lawmakers and Gov. Gavin Newsom’s administration will collaborate on policy changes that give legal businesses a lifeline while cracking down on burner distributors.
Spiker proposes tightening the current 90-day tax-collection window for licensed distributors to 30 days.
He said that would generate more state marijuana tax collections and give burner distributors less flexibility to ship legal cannabis to the underground market.
The tradeoff for cannabis companies: His plan would also lower state cannabis taxes by eliminating the cultivation tax and the occasional wholesale markup rate.
Spiker is shopping around his plan but hasn’t found a bill sponsor in the Legislature to run such a measure.
Still, he suggested officials might be open to the idea.
“We need tax relief to make the legal industry more competitive,” Spiker said.
Happy is scarfing them up like there is no tomorrow.
She loves the management team.
We have reached bottom folks.
Time to splurge.
Thanks but i,m not a gambler and well aware of this cannabis market.
So i,ll buy shares only if they pay me 50k-per-shares-purchased.
Klein is paid 43 millions...
They can afford my contribution!!!
Great time to purchase more Crappy Growth shares folks!!!
SINKING FAST!!!
Crappy Growth = Shindig or ShitShow?
No matter how you look at it, you lose...
Happy is waiting for US "permission to use cannabis"...
Why would Crappy Growth succeed in the states?
They were the biggest in Canada, and they blew it with crappy stuff.
We expect another dud as the us market is allready overcrowded.
Happy, you should purchase more shares before the final sinking.
YOU COULD BECOME A MILLIONNAIRE $$$$$$$$$$$$$$
In an overcrowded & oversaturated market you need to grow fire to survive.
Safe banking won,t help your Crappy ponzi.
You are doomed growing bunk.
i,m allready retired.
Legacy rules.
You are doomed!
Stoners are health conscious... they don’t feast on fast food & crap weed.
Mixing up canna with junk food shows how little you know about the culture.
You are doomed!
Competition is way too strong for Crappy Growth...
"Another massive bust of marijuana legacy grows in California
Published 3 hours ago
California law enforcement officials this week announced two days worth of raids (at a cost of 10 million$$) at several locations that produced the largest legacy marijuana grow operation in the history of the San Francisco Bay area.
As of Thursday, the Alameda County Sheriff’s Office estimated that deputies had seized roughly 100,000 marijuana plants, 12,000 pounds of cannabis flower, about $10 million in cash and 37.6 tons of plants and materials from at least a dozen sites where search warrants were executed, The (San Jose) Mercury News reported.
The warrants and raids were the result of an 18-month-long investigation, and Alameda County Sheriff Sgt. Ray Kelly predicted the busts – and resulting arrests of several suspects – would have no impact on California’s thriving legacy cannabis market.
“There is nothing to stop them from doing it again,” he said. “It’s such a lucrative business.”
The history-making bust is one of several conducted already this year in California.
In June, authorities uncovered another huge legacy marijuana grow operation in Los Angeles County that was worth an estimated $1 billion.
Members of California’s legal marijuana market cite the underground market as one of the state’s biggest hurdles to success, but law enforcement officials say their hands are largely tied when it comes to effective crackdown efforts.
Legacy has the upper hand when comes to mui dinero $$$$$ time."
Yup! Me 2014 prediction is starting to take hold with Ponzi suckers.
They are doomed in a rigded system...Tax is killing craft cannabis, says a new group
Published on September 30, 2021 by oz. staff
Photo: Stand for Craft
A new lobbying effort is pushing the federal government for tax reform.
The group, called Stand for Craft, says they are watching their peers go insolvent under the burden of excessive taxation.
They say: “Canadian craft cannabis is being taxed to death,” with craft cultivators paying 20-30% of their top line revenues to excise tax.
The effort has been championed in the media this week by Tantalus Labs founder Dan Sutton.
He penned an op-ed published by Vancouver Is Awesome about it.
“Craft growers are facing extinction under the burden of an excessive taxation regime, and we are standing together to share this message with Canadians who believe in a diverse and equitable future for cannabis enterprises in this country,” he says.
A hill they will die on
No other product in Canada is taxed as heavily as cannabis, says the Stand for Craft website.
“This is often a higher monthly burden than their team’s salaries,” it says. “We need change now, and we need your voice to engage decision makers in government.”
“Immediate excise reform is a hill craft growers are literally about to die on.”
The group says large publicly traded LPs have the deep pockets needed to last while smaller businesses go under.
They are recommending two changes to excise tax policy in Canada:
Remove the $1 minimum per gram tax per gram, and maintain a floating % on every gram sold.
Tax businesses based on scale, similar to the Canadian beer industry
Call to action
Here’s a form letter you can send to your favourite decision-maker:
Dear cannabis industry stakeholder,
I am writing today in advocacy of substantial and short term cannabis excise tax reform. Small businesses in our industry are paying 20%-30%+ of their top line revenues to excise tax today, and this burden prevents their financial survival.
The current excise regime has inhibited basic business fundamentals such as EBITDA and cash flow even in the best craft market success stories. Craft producers cannot continue to operate under the burdens of the current taxation model.
Immediate excise reform is a hill craft cannabis businesses are literally about to die on.
Monthly excise burden often exceeds team salaries, and it materially inhibits legal craft growers from competing with both their illicit market and publicly funded counterparts. Price compression has pushed average cannabis prices below $4.5 per gram wholesale, driving the $1/g minimum to an unsustainable cost for small businesses.
It is no exaggeration to say Canada is taxing craft cannabis businesses to death.
I stand behind the value of a diverse Canadian cannabis market with participants of all sizes. Mom and pops shops, family businesses, independent teams, and small to medium enterprises all deserve their place in our industry.
This is the only model that delivers economic benefits equitably across the country, and small business inclusion is the example Canada must set for global cannabis legalization. All eyes are on our nation and our great legalization experiment, and our actions today will create negative or positive ripple effects for decades to come.
I personally recommend two changes to cannabis excise taxation in Canada:
Remove the $1 minimum per gram tax per gram, and maintain a floating % on every gram sold for LPs of all sizes.
Tax businesses based on scale, as we see in the Canadian beer industry. This compensates for the substantial economies of scale enjoyed by large producers. Introduce different tax tiers for:
Microcultivators
Craft Scale Standard Growers
Small to Medium Cultivation Enterprises
Large Cultivators
Thank you for the work that you do in service of a bright future for the Canadian cannabis industry. We hope that you will stand with us to evolve the industry forward.
News
Smoke some Tommy Chong curated cannabis
Published on September 29, 2021 by David Wylie
Photo: @tommys_craft_cannabis on IG
Curious what Tommy Chong smokes?
You’ll soon get to find out.
A Canadian cannabis company says it will start selling weed curated by Cheech and Chong legend, Tommy Chong.
• RELATED: Cheech and Chong looking for a Canadian partner
Tommy’s Craft Cannabis is led by his nephews, Josh Wong and David Epp.
“We spent years preparing for this launch, waiting for the right cultivation partners who could offer unique legacy genetics and old school processes that met Tommy’s standards,” says Wong, co-owner and president.
“We’re delighted to be the first brand in Canada to offer a craft product from someone as experienced and respected as Tommy.”
3 celebrated legacy strains
Tommy’s Craft Cannabis will launch Dosi Punch, Cherry ‘47, and GGGrapestomper, all legacy strains with high THC and terpenes.
With the catch-phrase ‘Get Legendary,’ Tommy’s will offer craft-designated flower and pre-roll products in Alberta, Ontario, and Saskatchewan in October 2021.
There’s no date yet for BC.
Grown by Candre Cannabis
Tommy’s holds a partnership with Candre Cannabis, an indoor craft cannabis production and processing facility in Sundre, Alta.
Calgary-based RGB Group announced the official launch of the company.
The company says that “unlike most cannabis products currently available in Canada,” Tommy’s uses minimalist and eco-friendly packaging that’s reusable and biodegradable, limiting single-use plastics in the industry.
They also say terpenes and minor cannabinoids—like CBG and CBN—will be listed on the package, in a bid to increase product transparency.
Tommy Chong hinted to on Twitter
Tommy Chong’s tweet back in January 2021, saying “I feel that we will be there in the very near future,” foreshadowed the announcement.
Chong said he was struggling because of strict measures in The Cannabis Act against celebrity endorsements.
A Canadian himself, Chong, 82, was born in Edmonton and grew up in Calgary. He built a career in entertainment, spending time and creative energy in Vancouver—where he eventually met Cheech Marin. The duo hit mainstream success in the 1970s and 1980s with their stand-up comedy routines, studio recordings, and films. They featured the pair’s love for cannabis.
Time to purchase more shares folks.
Go wild!!
The "NEWS" your waiting for is a waist of time...
Bunk weed is bunk weed lady!
Who wants to buy crap?
Crappy Growth & happy = DOOMED
Canadian refuse your Crappy Growth bone dry bunk Monopoly Ponzi stock market Cartel.
Shure took you a while to get it but...
Canadian folks love to overgrow you.
You are doomed!!!
Get involved happy... show that you care...
Should i buy now or wait some more?
"Tweed caught the imagination of the world and lit the fuse of the legal path."
EX_SQUEEZZZ_ME?
A_BAKING_POWDER?
The fuse was lit way before Tweed,s Ponzi...
Legacy had done all the leg work and heavy lifting.
Keeping overgrowing the government, paying loads of $$$ for lawyers
all the way to the Supreme Court.
Jail time served, home confiscated, children taken away.
Tweed is a political & commercial ruse intended to lure suckers to a Ponzi.
Tweed,s fuse never lit... lol
They are doomed ((Full Steam Ahead Style)) lol
They closed Columbia..., they closed..., they..., th..., t..., .., .
What happens when all of Crappy-No-Growth closes down?
Or when all of Crappy,s cheap labour,s been fired?
WILL CRAPPY<S PONZI BE EXPOSED FOR WHAT IT IS?
Happy buying a Crappy Growth sodapop yesterday did not help at all.
https://www.cbc.ca/news/canada/newfoundland-labrador/canopy-growth-facility-wont-open-st-johns-1.5834184
https://www.cbc.ca/news/canada/newfoundland-labrador/tweed-stores-closing-newfoundland-1.6191792
Affected locations are shops on Water Street in St. John's and Broadway in Corner Brook
CBC News · Posted: Sep 29, 2021 7:00 AM NT |
Last Updated: September 29
Two Tweed locations in St. John's and Corner Brook will be closing as of Sept. 30. (Blair Gable/Reuters)
Two Tweed locations in Newfoundland are closing after Cannabis NL — the recreational marijuana regulator of the Newfoundland and Labrador Liquor Corporation — optioned their expiring licences to competing company Atlantic Cultivation.
The two affected locations are the shops on Water Street in St. John's and Broadway in Corner Brook.
The NLC told CBC Radio's On The Go in an emailed statement the licences associated with the Water Street, Kenmount Road, and Corner Brook Tweed locations were part of Canopy Growth's production agreement with the province signed in 2018. Canopy Growth is the parent company of Tweed.
But production never took off.
In December 2020 Canopy Growth axed its under-construction, 150,000-square-foot production facility, which was set to open in the White Hills area of St. John's, and ended operations in Fredericton, Edmonton, and Bowmanville, Ont. in an effort to save between $150 million and $200 million before the St. John's plant could even open its doors.
It was poised to be Canopy's largest production site in Atlantic Canada.
According to its website, Atlantic Cultivation has completed construction on its marijuana production facility in St. John's. (Mark Quinn/CBC)
The NLC said given that the production agreement was terminated, with Canopy's decision to cease operations at its production facility, the retail licenses went under review.
"A decision was made to extend a modified conditional licence to each of the impacted locations, with Water Street and Corner Brook extended to Sept. 30, 2021 and Kenmount Road extended to March 31, 2022, pending the results of NLC's March 29 request for proposals for licenced cannabis retailers in these areas," wrote Darrell Smith, manager of marketing and communications with the NLC.
Smith said other proposals ranked higher than Canopy's in each of these instances, and the Water Street and Corner Brook Tweed locations will cease operations, as planned, on Sept. 30 with "new locations opening shortly thereafter."
Canopy Growth pulls plug on St. John's facility, and 4 more, despite assurances of 'full steam ahead'
N.L. inks deal with new company to expand cannabis production and sales
Those two licences are going to Atlantic Cultivation, a company owned by a team Newfoundlanders and Labradorians who, in partnership with Auxly Cannabis Group, signed its own production agreement in September 2019.
According to the company's website it has finished building its 110,000-square-foot production facility in St. John's, located in the Kenmount Crossing Industrial Park.
Atlantic Cultivation is currently operating five Spiritleaf franchises across Newfoundland. Spiritleaf has 80 stores across Canada.
"I know hard core legacy growers who understand this. I also know others that do not."
Wich legacy growers do you know?
Just curious... i might know them as well.
Small world ain,t it?
you cannot build a business with folks who are scared of the high.
All Crappy Growth customers are green.
Greens buy a drink a month.
No wonder you are in the red. Wrong customers.
You are missing all the fun!
I don,t get fucked up because my endocannabinoid system is full.
Watch Remo on the tube or any heavy hitter $$$ smoking 50 grams a day. They rule.
Cannabis gives one focus and creativity.
Me think you have watch too many Cheech and Chong movies.
In real life they are high and you would not know it.