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Canada Sold C$43 Million Of Legal Pot In The First 2 Weeks

Dec. 26, 2018 8:06 PM ET
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Includes: ACB, APHA, CGC, CNTTF, HMLSF, HYYDF, MJ

Canadians spent $43 million on legal cannabis during the first two weeks since legalization; Ontario and Quebec accounted for half of the sales.

It is very telling and interesting to see that the top four provinces with the biggest sales per capita are the four smallest provinces by population.

On the other hand, the two stores in Massachusetts generated over US$7 million in sales from legal pot during the first three weeks of opening.

The impressive sales in Massachusetts demonstrated the massive consumer demand and market potential for the U.S. market.

Welcome to our Cannabis Industry Analysis where we analyze the latest and hottest topics in the industry to help you stay ahead of the curve.

Introduction

Statistics Canada started including cannabis in their monthly retail trade figures release starting in October. Since Canada legalized recreational cannabis on October 17, the October retail trade figures included the first two weeks of legalization sales, which totaled $43 million. The data has profound implications for the industry's largest producers such as Canopy Growth Corp. (CGC), Aurora Cannabis (ACB), Aphria (APHA), HEXO Corp. (OTCPK:HYYDF) and CannTrust Holdings (OTC:CNTTF). These stocks need strong sales in early 2019 in order to sustain their valuation. Investors have not had the opportunity to assess market size and profitability potential for Canadian pot stocks. The early readings sent mixed signals to the market as severe supply shortages hampered early sales.

(All amounts in C$ unless otherwise noted.)

$43 Million Sold in October

Since Canada officially legalized cannabis on October 17, 2018, the country has generated $43 million in sales during the two weeks. The data came from Statistics Canada as part of their monthly retail trade data release for the month of October. The fact that cannabis is being included in the monthly trade data along with traditional sectors such as automobile, clothing, food, electronics etc., suggested the importance of this industry to the country's economy. It is safe to say cannabis will become an indispensable part of the Canadian economy.

https://seekingalpha.com/article/4230289-canada-sold-c-43-million-legal-pot-first-2-weeks