RE:The model will work in Canada onceCaneIsAbel wrote: The government treats Cannabis like alcohol. There has been many government mis steps regarding legalization hence the review. Tilray Brands is not responsible for a gross excise tax a dollar a gram regardless what you sell that gram for. Same catlysts Curaleaf is desperately hoping for in USA. Thankfully The Canadian gov review issued a report saying it must be changed when? Idk regardless Europe will be a far better market and USA with booze and hemp. Canada all we can do is consolidate continue wait out the competition and hopefully the gov cracks down on black market. Same reasons Borris of Curaleaf stated he left California, Michigan, Kentucky and everywhere else that TLRY Tilray brands sells products in mind you
It is easy to blame the government, but at the end of the day companies must be nimble enough to adjust and thriive within an existing market or make the decision to leave. As we saw this week, it is very possible the Federal Government will keep the excise tax as is. Doug Ford has launched his strategy to cut down on the illicit market in order to correct the MJ black market that is driving down prices. There is some merit in that, as if you focus on just lowering taxes you do not correct the issue of price compression, as the BM does have to play by the same set of rules. Another point is the excise tax can be used to finance the policing requires to put a dent in the BM. Although ONtarion is not all of Canada it remains the most important market within Canada and it would be well advised for any MJ company to learn how to work with the Premier of that province. Tilray has so many battle to fight it would be best to avoid one with city hall imho. All the legal MJ companies in Canada are working under the same rules, some are thriving, these are the companies that will survive and expand. Once a company has learned how to make money in the market they are in they can then take that model and expand internationally, but not before. We often see parallells in other markets to our own, as jjyou have pointed out before, yhe US MSOs have to deal with 280e, so that said, if Tilray were to continue the same model in the US as in Canada they would be looking at the same poor finacials as in Canada, only at a much larger and worriesome scale.