Aurora Cannabis Inc (ACB)

[Chicago-Paul]

If there ever is an "Over Supply" in Canada - then I believe the Market Economy will work it out without Government Regulation.

In Over Supply situations - the lowest cost producer with the most solid balance sheet usually is the winner.

The Low Cost Producers usually have all of their PP&E paid for years ago and they usually are not carrying too much debt. As such, they can survive when the Cannabis Market declines.

That said, their does become a point of equilibrium in the market. This is why most Craft Beers are selling for $9.99 a six pack - this is the "equilibrium price point" of what consumers are willing to pay and where producers can make a reasonable profit.

You will be able to see the signs of an Oversupplied Canadian Cannabis Market when they start having "Sales" and "Discounts" and "Groupons" for their Cannabis Products.