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ArchimedesBon Nov 30, 2016 5:47pm
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Canada May Face Marijuana Shortage When It's Legalized
Canada May Face Marijuana Shortage When It's LegalizedCanada May Face Marijuana Shortage When It's Legalized: Canaccord
As a law-abiding news organization, we can't advise you to stock up on illegal weed before it goes legal.
But.
“We believe the rigorous process of becoming a licensed producer of cannabis in Canada imposes significant barriers to entry,” analysts Matt Bottomley and Neil Maruoka wrote in a research note this week.
“To date, Health Canada has approved 2 per cent of applications from growers seeking approval to supply the medical market."
Lack of production “will result in a shortfall of supply in the near term,” the analysts said, but that would help give the bud a “floor” price of $8 per gram. That’s similar in scale to what marijuana sells for on the black market today.