Heritage Cannabis Holdings Corp HERTF

RE:Canopy Growth has glut of oils and capsules.

[Duhaus]

Do you think there will be an oversupply once the recreational Market becomes legal? When oil and extracts can be infused in Edibles and beverages?

BobGreenfield wrote:

 

FP says Canopy Growth has glut of oils and capsules

 

2019-08-16 09:24 ET - In the News

 

The Financial Post reports in its Friday, Aug. 16, edition that cannabis retailers in parts of the country say they are struggling to sell Canopy Growth's Tweed-branded oils and gel capsules, resulting in a glut of unsold inventory and raising the tricky question of how to handle returns. The Post's Vanmala Subramaniam writes that National Access Cannabis chief executive officer Mark Goliger says: "They are just not selling. We have been talking to Canopy for some time now about the issues with their oils and gel capsules. They have known for months that most of the retailers are having problems selling them. In its latest quarterly results, Canopy recorded a gross revenue adjustment of $8-million ($6.4-million after excise taxes) citing the risk of "oversupply of certain oil and gel-cap formats in certain markets." On Thursday Canopy management acknowledged that although their adult-use oils and gel capsules had sold well initially, demand had been slipping of late. "It's normal course in business. We are always talking with retailers, looking at the mix of what they have and the mix of what we are preparing. That's why we decided to take that $8-million provision," said interim CEO Mark Zekulin.