RE:Bloomberg - Blackmarket Losing Market ShareThe link below is for StatsCanada and it confirms that the black market is losing ground to legal cannabis.
There is an old Chinese question " How do you eat an Elephant?"
Over time the Legal Suppliers of Cannabis will eat the Black Market alive... one bite at a time.
HEXO is providing the most cost competitive product offerings to compete with the Blackmarket and their Q over Q numbers confirm that they are gaining ground and making money doing it. They have achieved ajusted EBITDA positive now and see no need to raise additional capital, something competitors cannot claim with Canopy even going to market to raise an additional 2 billion dollars.
HEXO is a "WHEN" it will adjust back up to higher shareprice, not an "IF" and will reward investors with patience and the ability to not mess their pants when the shareprice pulls back.
Q
quinlash wrote: Taken From Article: Canadian household spending on illicit cannabis fell to a new low of $784 million in the second quarter, StatsCan added. Taken together, the legal cannabis market now accounts for 50.5 per cent of all pot-related spending in Canada.
"The progress is there and there's more progress to come," George Smitherman, chief executive officer at the Cannabis Council of Canada, told BNN Bloomberg in a phone interview.
"This is occurring when there's a lot of pressure on dried flower pricing. It's even more impressive because there's more volume being sold as cannabis is now being sold for very competitive prices."
Link to Full Article: https://www.bnnbloomberg.ca/legal-cannabis-spending-outpaces-illicit-market-for-first-time-in-q2-statscan-1.1486347