420 big fizzlefor those old diehard pot smokers. Also most pot preneurs. It is going to take some changes in regulations and law and a huge attrition of pot supply and potpreneurs.
Decriminalization or legalization is happening but not in a clearly defined path to make a huge difference which is what most pot investors are banking on.
Canada led the way with legal pot for adults for rec, built on their pro-pharma laws but regulators had second thoughts and put in so many clauses and defaults that limited the success of some highly invested potpreneurs known as LPs.
Better luck Stateside for their licensed producers and players known as MSOs who navigated legal States and a clusterfuch of rules and actually generated profits through adult rec and pharma sales.
Investors want a clearly defined Federal or even a Worldwide regulatory structure before they continue to invest in a new vice that that is all over the map with rules and regulations that the major players are even having trouble making any profits.
US potpreneurs have bought business experience and hardcore practice to the regulatory bodies who have made this a political plum that they are batting back and forth but not scoring any points with those invested.
It is clear that there are too many players invested, too much pot available which plays right in to the regulators wheelhouse for being able to bring comparitively priced marijuana to market that can compete with the black market pot that is dominating because they are illegitimate and don't pay taxes or follow safety guidelines which is a huge selling point for legal, inspected, regulated and safe, traceable product for consumers.
It is a no-brainer that for the same cost, most consumers will support the legal system.
Financing is in decline for potpreneurs who are still intent on building their companies but supply and too many players has to play out until equilibrium is reached and the old laws of supply and demand kick in.
LPs and MSOs have big ideas and invested heavily in building huge tail to snout cannabinoid companies, most of which are marginal and facing the same pressures as the little guys. That is not to say the little guys with a unique strain or sku or boutique edge won't make it, but LPs like Canopy have a big brother that invested heavily to take the wheel and I believe who will continue to be able to raise funds or loans to steamroll the little guys while they fail and dissappear.
Not having clear, concise and universal Federal laws Stateside is a huge hinderance and the sudden implementation of these by government law and policy makers will result in a greenrush that will make Canada's look like a lark.
It will still take a serious rightsizing and re-evaluation of the MSOs and lesser potpreneurs before the winners can capitalize and hopefully benefit shareprices for investors.
Some of the world is waiting for this to happen while others are already forging plans for the new vice.
I believe that smokeable products are on the decline sans the vapes in favour of better ingestion forms and I banked heavily on cannabinoid infused beverages, which to me is a no-brainer but a more difficult product line to deliver.
The big pot lobbyists need to squeeze the regulators to get a level playing field with alcohol so that we can stand side by side in their venues, bars and lounges to get the full bang for the buck that the big guys are targetting.
It is too big and has too much potential and the soft alcohol guys are already planning for losing market share to cannabinoid beverages.
STZ/Canopy put up $5 billion to take the wheel at Canopy. When Canada dropped the ball, they saw their future in the legal States for achieving the full benefit on their skus as a business.
STZ didn't stop there but also lined up at least a half dozen other US based companies that are like-minded or already have brands that are showing huge potential.
STZ has their own financing arm and they secured some of those US companies by financing them and they continue to move forward despite the investment climate which is gutsy and maybe, hopefully, good business development for a winning mention on the successful potpreneurs list.
For the little players, they will require financing if they can't make profits and if that financing is available it will be at ridiculous rates and still won't bely the fact that there is too much supply and too many players and the illegal issue Stateside needs to be dealt with.
The US either needs to bring the illegal side to legal or eliminate it which brings me to my number one reason for them not having already done it and that is that the black market plays life and death stakes and personally, I can't blame those charged with dealing with this for not wanting to put up their loved ones and friends and family.
There are ways to bring the cartels to the table by letting them control the grows and delivering safe, inspected product to the US value added manufacturers who can do their magic to formulate pharma-grade medicines or unique value added skus, like thc and cbd infused beverages or chocolates, brownies or whatever the consumer will buy.
US grow-ops and greenhouses will never be able to compete against the production costs of hot sunny countries with $2 a day labour.
All of those greenhouses can be used to grow limes and avocados in the US, lol!
I'm hoping for a miracle by regulators who can put together the best of all the US bills that have been presented and sit unsigned by the President in favour of streamling the laws for US potpreneurs, hope fully by 2024 to secure some extra votes for the Democrats who haven't publicly announced that they won't go pro-pot like McConnel did.
Canopy managment could spell out exactly how we are going to morph into Canopy USA through Acreage Holdings and how they are going to integrate their other US assets.
Not keeping investors informed is construed as having something to hide or doing something underhanded and I can only hope that they can support what value we have left in our shareprice.
Shareholders first and that includes damage control for Acreage's shareprice too.
Some of these big players are so underhanded that theiving the company out from under the original investors with all of their confusing deals screams for serious punishment by securities or shareholders.
glta and dyodd