The Cannabis Supply Demand SituationMany recent articles have been focusing on the demand for cannabis versus the supply which is rapidly expanding. One example is this linked one which appeared in the Financial Post on June 13th. https://business.financialpost.com/cannabis/what-cannabis-shortage-analyst-warns-oversupply-could-become-a-problem-as-soon-as-2020
The production (supply) side throughout the industry is improving. Flower is quickly becoming a commodity which means flower retail prices will be under pressure. Those with the lowest costs will survive. Those with high costs will not be able to sell at a profit.
This situation is most likely the reason for the overall decline in share prices.
48North is moving in the right direction by focusing on extraction-based brands. This segment of the market is where loyalty through branding and higher profit margins will be. The company that quickly establishes itself in this new market segment is the one that prospers.
Based on everything 48North is planning, 90% of outdoor goes to extraction, on site extraction facility, Avitas, Mother & Clone, lowest cost/gram, etc they appear to be among the most, if not the most prepared for this new phase of the cannabis market.
The smaller they are the quicker they adjust to market situations.
In the short-term there will be pain. In the long-term investors will be rewarded!