RE:Who Thinks Valens Made a Mistake By Selling Off Inventory? There is currently a glut of medium grade cannabis in Canada. No one can dispute that.
After reviewing some data I might suggest that could change more quickly than some might think.
Consider this if you will.
Cannabis Wholesale
As of November 2020 stats Canada Reports Wholesale cannabis sales increased 126.8% over November 2019.
https://www150.statcan.gc.ca/n1/daily-quotidien/210119/t001a-eng.htm
Growth in sales almost doubled the growth in inventories which stood at a 69.2% increase year over year.
https://www150.statcan.gc.ca/n1/daily-quotidien/210119/t003a-eng.htm
Although inventories are growing the growth in sales is out pacing inventory growth at a ratio of almost 2:1.
Legal cannabis sales in Canada for 2020 are on track to exceed $2,575,000,000.
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2010000802&pickMembers%5B0%5D=1.1&cubeTimeFrame.startMonth=01&cubeTimeFrame.startYear=2020&cubeTimeFrame.endMonth=11&cubeTimeFrame.endYear=2020&referencePeriods=20200101%2C20201101
Although inventories are high at present the ‘glut’ that exists now could be depleted as quickly as it was created with production curtailments currently being exercised industry wide.
Modest projections for Legal Cannabis sales in Canada in 2021 can reasonably be suggested over $3.2 billion.
With ‘hemp derived’ CBD being delisted as a controlled substance in multiple international jurisdictions there is a strong possibility that the legislative framework for CBD in Canada could open up broader markets.
The mj space is rapidly evolving and opportunities abound for those companies nimble enough to adjust.
At least Valens Isn’t sitting on their hands. They’re adapting.
That said... I could be wrong.
cheers