RE:Election impactflamingogold wrote: Does anyone foresee any legal obstacles or changes down the road for the mj market if the PCs win? Could the upcoming election bear any weight on the current mj market as all seem to be under pressure.
The upcoming election has nothing to do with the downward pressure. It`s all about financials and overcapacity. Some missed guidance calls as a result of overcapacity resulting in LPs not able to sell all their product - all Lps producing at 100% causes overcapacity and retail prices to tank. No one wants to be left with product they can`t sell. There should have been regulations in place to attain a fair market for all similar to the auto industry - instead, over 100 HC licenses were given with many more to come. Hype is done. As well , Retail investors are tired of having their losses in some cases over 50% becoming unwilling bagholders because they believed in possibilities, were for the vast majority of this industry robbed blind. Shame on the market makers playing spreads to draw in retail for yet another slaughter, and all those who have stolen money from good people`s families , children`s education funds, retirement savings , lines of credit , etc.
There will be sporadic bankruptcies industry wide by the end of 2019 further driving fear , a few names will surprise you - assuredly , they are not large LPs - watch it happen. Some will survive as behemoths , other smaller micro brewery type operations selling into a niche market will survive as well. Overall - the cost per gram for production as low as possible with quality product will fare well . Others that are burning through cash faster than they can make it may be in real danger until the market levels itself.
Regardless of who wins the federal election the outcome will not change. The Government saw this as an opportunity to generate millions of tax dollars and will do everything to bolster that. The PCs are in power in Ontario - Doug Ford`s brother is CEO of the Ontario OCS . There are currently 25 cannabis stores open in Ontario, with another 50 coming this fall , 12 in Toronto alone.
48 is in a great position for low cost quality product and will more than likely survive the inevitable market leveling to come. Good Luck to all.