2019 was suppose to be our (marijuana stock investors) breakout year... 
but Aurora..Hexo and Aphira both reported less than steller earnings report this year...
analysts cite the fact that inspite of Canada legalizing Weed in all of it's provinces nearly 50% of marijuana purchases were still bought ILLEGALY on the streets
Canadians continue to buy cannabis illegally
By Amanda ShendrukAugust 18, 2019
Nearly half of Canadian cannabis consumers purchase their weed illegally, reveals Statistics Canada’s National Cannabis Survey released Thursday (Aug. 15). Ten months after the country legalized recreational marijuana, 42% of those who partake admitted to buying at least some of their pot from an illegal source, such as a drug dealer.
Legalizing the drug has not yet eliminated the black market, in part because the number of legal shops is rising slowly. The federal government imposes onerous registration procedures on these shops; only recently has the government reassessed them in an attempt to ease the “licensing bottleneck.” Other would-be shop owners point out that it’s difficult to enter the legal market via what they say is an ‘unfair’ lottery system. The legal shops that do exist consistently fail to meet consumer demand.
In the last quarter of 2018, 79% of transactions were done on the black market, according to Statistics Canada.
The black market persists in part because the legal market offers little variety. Cannabis-infused food and drink are not yet legal. This leaves a significant gap in the market; edibles account for 43% of the total cannabis market in Colorado, California, and Oregon, for example.
Cannabis stocks have been on a roller coaster ride in 2019. The marijuana industry continues to evolve. Regulations play a vital role in the industry. As a result, ups and downs are common. There have been more headwinds this year, which makes investors’ question if their money is in the right stocks. Canada has been flourishing since it legalized marijuana in 2018. The country completed the second phase of legalization on October 17. However, thriving black market sales are still a challenge for the cannabis sector.
Cannabis sales in Canada’s black market
Canada legalized recreational marijuana a year ago. Statistics Canada said that licensed retail outlets sold more than $100 million worth of marijuana in July. However, industry analysts think that the number would have been higher without black market sales.
Canadian consumers still purchase cannabis illegally. Data from Statistics Canada’s National Cannabis Survey showed that close to 42% of cannabis consumers still buy products from an illegal source. The strict and strenuous regulation process is an issue. Also, a licensing bottleneck makes it difficult to have more legal shops.
A Quartz article stated that Statistics Canada data shows that Canada saw 79% of the black market cannabis transactions in the fourth quarter of 2018. The data shouldn’t be a surprise. Although Canada legalized cannabis in October 2018, it takes time for licensing. There would have been fewer legal shops in 2018.
However, a lack of variety in legal marijuana products and cheaper prices at illegal shops catch consumers’ attention.
Can Cannabis 2.0 reduce black market sales?
Canada completed Cannabis 2.0 on October 17. The country legalized cannabis edibles, beverages, vapes, and concentrates. Cannabis 2.0 introduced a new variety of products. Notably, the products should hit the stores by December. Deloitte projections show that the market opportunities for edibles and concentrates are 1.6 billion Canadian dollars and 140 million Canadian dollars.
Cannabis 2.0 could help deter illegal sales. On Monday, CBC reported that licensed cannabis producers in Canada think that legal edibles will help tackle black market sales.
Rising black market sales have impacted many Canadian cannabis companies’ revenues. Many of the companies have struggled with revenues and profitability this year. As a result, the stocks suffered. In the past few weeks, the cannabis sector has fallen. There has been pessimism that the sector’s revenues could fall this year. The Horizons Marijuana Life Sciences ETF (HMMJ), which tracks the North American cannabis industry, has fallen 8.2% in October.
Cannabis stocks have lost money in 2019
Aurora Cannabis (ACB), a prominent player in the cannabis space, reported a negative EBITDA in its last quarter. The company is launching a variety of edibles including chocolates, gummies, and vaping products. The company has submitted its products to Health Canada for approval. The products could hit the stores by mid-December. So far, Aurora Cannabis stock has fallen 16.4% in October.
Aurora Cannabis’s CCO, Cam Battley, said, “Canadians are purchasing edibles from the black market because they’re interested in alternative ways of getting high.”
Illegal cannabis is also, simply, cheaper. In July, the gap between legal and illegal weed was almost $5 a gram on average. Statistics Canada noted that 42% of users considered lowest price as a main factor when deciding to purchase cannabis. Still, most users (76%) considered quality and safety first.
but Aurora..Hexo and Aphira both reported less than steller earnings report this year...
analysts cite the fact that inspite of Canada legalizing Weed in all of it's provinces nearly 50% of marijuana purchases were still bought ILLEGALY on the streets
Canadians continue to buy cannabis illegally
By Amanda ShendrukAugust 18, 2019
Nearly half of Canadian cannabis consumers purchase their weed illegally, reveals Statistics Canada’s National Cannabis Survey released Thursday (Aug. 15). Ten months after the country legalized recreational marijuana, 42% of those who partake admitted to buying at least some of their pot from an illegal source, such as a drug dealer.
Legalizing the drug has not yet eliminated the black market, in part because the number of legal shops is rising slowly. The federal government imposes onerous registration procedures on these shops; only recently has the government reassessed them in an attempt to ease the “licensing bottleneck.” Other would-be shop owners point out that it’s difficult to enter the legal market via what they say is an ‘unfair’ lottery system. The legal shops that do exist consistently fail to meet consumer demand.
In the last quarter of 2018, 79% of transactions were done on the black market, according to Statistics Canada.
The black market persists in part because the legal market offers little variety. Cannabis-infused food and drink are not yet legal. This leaves a significant gap in the market; edibles account for 43% of the total cannabis market in Colorado, California, and Oregon, for example.
Cannabis stocks have been on a roller coaster ride in 2019. The marijuana industry continues to evolve. Regulations play a vital role in the industry. As a result, ups and downs are common. There have been more headwinds this year, which makes investors’ question if their money is in the right stocks. Canada has been flourishing since it legalized marijuana in 2018. The country completed the second phase of legalization on October 17. However, thriving black market sales are still a challenge for the cannabis sector.
Cannabis sales in Canada’s black market
Canada legalized recreational marijuana a year ago. Statistics Canada said that licensed retail outlets sold more than $100 million worth of marijuana in July. However, industry analysts think that the number would have been higher without black market sales.
Canadian consumers still purchase cannabis illegally. Data from Statistics Canada’s National Cannabis Survey showed that close to 42% of cannabis consumers still buy products from an illegal source. The strict and strenuous regulation process is an issue. Also, a licensing bottleneck makes it difficult to have more legal shops.
A Quartz article stated that Statistics Canada data shows that Canada saw 79% of the black market cannabis transactions in the fourth quarter of 2018. The data shouldn’t be a surprise. Although Canada legalized cannabis in October 2018, it takes time for licensing. There would have been fewer legal shops in 2018.
However, a lack of variety in legal marijuana products and cheaper prices at illegal shops catch consumers’ attention.
Can Cannabis 2.0 reduce black market sales?
Canada completed Cannabis 2.0 on October 17. The country legalized cannabis edibles, beverages, vapes, and concentrates. Cannabis 2.0 introduced a new variety of products. Notably, the products should hit the stores by December. Deloitte projections show that the market opportunities for edibles and concentrates are 1.6 billion Canadian dollars and 140 million Canadian dollars.
Cannabis 2.0 could help deter illegal sales. On Monday, CBC reported that licensed cannabis producers in Canada think that legal edibles will help tackle black market sales.
Rising black market sales have impacted many Canadian cannabis companies’ revenues. Many of the companies have struggled with revenues and profitability this year. As a result, the stocks suffered. In the past few weeks, the cannabis sector has fallen. There has been pessimism that the sector’s revenues could fall this year. The Horizons Marijuana Life Sciences ETF (HMMJ), which tracks the North American cannabis industry, has fallen 8.2% in October.
Cannabis stocks have lost money in 2019
Aurora Cannabis (ACB), a prominent player in the cannabis space, reported a negative EBITDA in its last quarter. The company is launching a variety of edibles including chocolates, gummies, and vaping products. The company has submitted its products to Health Canada for approval. The products could hit the stores by mid-December. So far, Aurora Cannabis stock has fallen 16.4% in October.
Aurora Cannabis’s CCO, Cam Battley, said, “Canadians are purchasing edibles from the black market because they’re interested in alternative ways of getting high.”
Illegal cannabis is also, simply, cheaper. In July, the gap between legal and illegal weed was almost $5 a gram on average. Statistics Canada noted that 42% of users considered lowest price as a main factor when deciding to purchase cannabis. Still, most users (76%) considered quality and safety first.
