The price of cannabis is falling, suggesting a supply glut
Hazy regulations encourage American marijuana firms to list in Canada
The Economist (UK)
Thursday, November 16, 2017
Thursday, November 16, 2017
In the US cannabis operations, now legitimate in many states, are forbidden from the usual business deductions and face crippling tax bills of as much as 70% of revenue. That is just one of the weird results thrown up by the unique regulatory bind in which cannabis companies find themselves. For decades theirs was an underground enterprise. And although 29 states have legalised marijuana—seven of them and the District of Columbia permit recreational use — the federal government still considers pot illegal. Investors remain skittish about the industry, and accessing American stock markets is onerous. Instead, firms are moving north to Canada. (See also: Aurora Cannabis takeover bid ‘makes no sense,’ CanniMed CEO says)
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