GREY:CHALF - Post by User
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PortlandBlazeron Sep 17, 2020 1:08pm
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Vape pens, and the market shift to legal regulated suppliers
Vape pens, and the market shift to legal regulated suppliersThe vape pen crisis of late 2019 hurt GLH revenues. This headwind is now becoming a tailwind.
From the 2019 year end financial statements, Management Discussion and Analysis, page 10, "In the fourth quarter of 2019, product sales decreased by $0.6M or 14% to $3.5M, as compared to $4.1M in the fourth quarter of 2018. This decrease is attributable to seasonality and the impacts of the widespread vaping crisis which depressed both retail and wholesale cannabis sales during the fourth quarter."
Now, consumers are turning to legal, regulated cannabis products. This trend should be good for legal, regulated GLH across all product categories. “We believe the bigger lesson here is that the data clearly indicate that there were fewer cases of lung illnesses and injury in states where legal, regulated cannabis products were available,” said Steve Fox, strategic adviser to the Cannabis Trade Federation. In fact, the lowest rates of incidence were in Colorado, Washington and Alaska – three of the first four legal states – with Oregon and Nevada close behind.”
https://mjbizdaily.com/marijuana-vape-firms-say-customers-turning-to-legal-suppliers-over-illicit-market/
This trend towards legal, regulated suppliers will help GLH gain market share from black market suppliers. It's a big target, with consumption patterns already established. The black market is expected to be a $60 Billion market this year.
https://www.leafly.com/news/industry/americans-will-spend-60-billion-on-illicit-marijuana-this-year-report-says