Future for Licensed ProducersThese SPs are mostly based on speculation when the recreational market hits. Currently, every Licensed Producers are selling to medicinal patients. These patients can afford higher prices due to goverment fundings and insurance support.
One of the biggest factor the government is moving towards legalization (other than TAX benefits...but that's a whole can of worms on its own) is to stop the sale on the black market, and it comes down to the bottom line... PRICE per gram. The intent is to have cannabis available at a lower price so the black market cannot compete. While other Licensed Producers focus on marketing and getting their product known, it is driving their operating cost up. It would be a shame to find out that these LPs are not profitable when marijuana finally become legalized due to prices they cannot meet.
Look at crude oil for example. Other parts of the world, Canada especially has an abundance of oil. But when Saudi Arabia decides to sell their oil at a much cheaper price, the Canadian loonie struggles... I've said it before. It comes down to the bottom line. While LPs like ACB and APH are sticking to that bottom line, I'm a bit concerned that CGC is spending more than it can profit. Only TIME will tell...
GLTA!