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Cannabis 2.0 Kicks Off In Canada


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"As 'Cannabis 2.0' kicks off in Canada, industry strangled by limited retail outlets"

(Reuters) - A year after Canada legalized use of recreational marijuana cannabis stocks have lost half their market value, and investors betting that the launch of higher-margin pot-infused drinks and other products will quickly lift shares may be in for a bumpy ride.

So-called cannabis 2.0 - legalization of marijuana derivatives including edibles, beverages, extracts and vape pens - takes effect on Thursday, with sales seen beginning in mid-December. While that is expected to help sagging share prices, the crucial factor for a turnaround is a significant increase in the number of stores selling the products, investors, companies and analysts said.

Share prices in the Horizons Marijuana Life Sciences Index ETF have slumped as companies’ revenues missed expectations. Cannabis producers, investors and analysts have blamed Canadian regulations that have slowed the opening of new retail outlets, strangled sales and imposed higher costs.

Investment bank and advisory firm Seaport Global figures Canada needs about 1,055 stores to realize the cannabis market’s true potential.

About half that number currently exist, with about 300 of those stores in Alberta, which has looser regulations than the rest of the country, while the most populous provinces of Ontario and Quebec have lagged far behind.

“We would probably give the first year a C minus,” said Seaport Global analyst Brett Hundley, giving the industry performance a barely passing grade.

The slow roll-out of stores “creates a real problem for Canadian licensed producers, because they’ve expanded rapidly with cultivation and production facilities and have nowhere to go,” he added.

Lackluster results from cannabis producers “will continue and potentially worsen,” Hundley cautioned.

Canada’s biggest cannabis companies including Canopy Growth and Aurora Cannabis reported larger-than-expected losses in the latest quarter and pushed back their timelines to profitability, blaming their woes on the need for more stores to sell their wares.
“But at the end of the day,” he said, “the multi-100-billion-dollar cannabis opportunity that existed yesterday still exists today.”


Edited by RV_
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It's a poor business argument that more retail locations are needed. Authorized retail prices are roughly 50% higher than previous "illegal" prices, it's legal to have 3 "Grow Your Own" plants, and the still want more retail. Work on your marketing model, first. As far as stocks, we were big into Aurora, but jumped and dumped in the first peak. We're out right now, because all of them are suffering from the same short-sighted marketing vision.

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Yep, that was good timing for you. I am fine with a few years wait. I would take a loss if I sold now. But the 6000 shares bought cheap should do quite well in the next two or three years. I have only about $30k tied up in ACB.

With my Tesla shares, I had to wait eight years until I sold my 1000 shares.

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  • 7 months later...

Saw this old thread and it reminded me of a time when there wasn't a legal way to buy weed or CBD. This was awful times. Because my poor grandpa suffered from spinal pain after surgery and there was nothing to help him with this problem. After laws changed, we were able to buy him CBD gummies. He uses this stuff now, and he's saying that most of his problems were solved. And that's wonderful. He's a very old man. It was his 90'TH birthday last month.

Edited by RainbowStalin
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The dispensaries have a wealth of products some just CBD, some just THC, and others with different ratios of each. I have had cervical and lumbar surgeries from injuries while I was active duty military. We just finished burying the last of family we were caring for in Louisiana in 2016, and then after doing all the succession for land and liquid assets and investments we moved here to Colorado last year. 

I don't smoke and found tinctures, delicious chocolate bars and gummies, and agave THC tinctures. I have found relief and very inexpensively because I am not interested in getting high, but the CBDs for the pain and just enough THC to take care of the muscle spasms.

Now it is just on hand in case. I don't like being high and even stopped drinking alcohol many years back at the same time I quit smoking. (I had to quit drinking because whenever I had a drink I craved a cigarette with it.) I still drink my old drink of Scotch/rocks, water, and a big twist of lime, hold the Scotch.

My FIL, also military retired, suffered agonies from severe scar tissue problems with his spinal surgeries, that were only helped by every opioid I refused to take including Fentanyl! He was in agony for his last ten years.

There are a lot of laws, not just drug laws that need to be changed. Since you are interested see if you can find this book at your local library if you don't want to buy it. https://www.goodreads.com/book/show/110490.From_Chocolate_to_Morphine

I read it in the 80's and it changed my whole outlook towards legalization of everything. But I don't like being high so I am all but not using any more of the legal stuff with THC. So I'll be finding out if CBD alone has any effect on my pain. Here I can be assured I am getting real CBD. If not, then like with alcohol, I can get by with just my Naproxin and a 5mg Flexeril daily.


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I started using a CBD balm for my back while in Alaska last summer.  Found that it worked as good or better than other types of balms.  While in Quartzsite in January my wife filled out a card for a free bottle of CBD oil.  She won so I started taking the drops under the tongue.  Since then I've not had to use any nsaids or pain pills.  I still have some pain after over doing it but usually only lasts a couple days.  Overall I don't have any daily pain or aches like before.  I have a torn disc at L4-5 and get epidural shots and a nerve ablation once or twice a year.  CBD is not a cure but definitely helps me get around with no or much less pain.  And for now it's helping to avoid the eventual surgery.  Like you I'm not interested in getting high so the product I use has no THC.

Interestingly on another forum someone has been using a CBD cream for mosquito bites. 

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Hey guy!

Yeah I have had zero pain using 1:1 5mg THC/5mg CBD, and I can function fine on that small dose. How many mg are you taking of CBD alone? Isn't it great to be able to ask these questions today in public so others who may not want to ask and look like a pothead, but is fine with Opioids, (grin) can get the info? I have been reading all the dispensary publications here, and they even have online ordering.

I have seen where in the states where they don't even have legalized medical marijuana there are lots of fake CBD products being sold because only in states where it is legal are they checked at all for content! In the illegal states they have folks pulling the same scams as that Baker fella tried to do with his snake oil COVID 19 scam cure: https://www.bing.com/search?form=MOZLBR&pc=MOZI&q=jim+baker+scam

If I hurt my back by overdoing it, it takes one to two hours for it to take effect so I can take just a single 200 mg Naproxin (Alleve) to hold it until the Cannabis product kicks in.

I had the minimally invasive surgery for my cervical/lumbar issues that cleared the nerve canal and completely stopped the electric shock like nerve shocks that would shoot down my legs, and the muscle spasms in mid back are gone too from the 5mg Flexeril. Until I overdo it. The numbness from the cervical is still there.

Hand in there brother!


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Funny how I didn't tell anyone else that I was using for a few months.  Now that I'm "out of the closet" I'm finding quite a few people are interested.  Even my back doc seemed interested and didn't poopooh the idea.

I'm using 50ml of 30mg full spectrum CBD from Hempworx daily under the tongue. That's what my DW won and seems to be working so I'll stick with that.  We're planning to be in Colorado next month or 2 so I may see what's available.  Gotta get outa the Louisiana heat & humidity!  PM me your phone number and if we're near you we'll try to get together for lunch or something.

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