Medical vs Recreational
Profit margins on medical will be about $2 more per gram than rec.
Medical will be priced lower than rec, but profits will not be squeezed by taxes and provincial distribution channels all trying to get their cut.
Take for example:
Recreational price per gram: $10
Taxes (HST & excise): -$2.13
LCBO (Ontario) distribution cost: -$3.00
Cost to Produce: -$1.25
Profit: $3.62 per gram
Medical price per gram: $8
Taxes (HST & excise): -$0
SHoppers Drug Mart distribution cost: -$2
Cost to Produce: -$1.25
Profit: $4.75 per gram
Distribution costs are estimated, but in my experience, private is more cost efficient than public channels.
That is why this is a big deal