How the biggest pot stocks plan to win in what is about to become a 'brutal' industry
Canada has more than 135 publicly traded pot companies, but it's only a matter of time before that gets whittled down to a handful of survivors
Financial Post (Canada)
Monday, October 15, 2018
Monday, October 15, 2018
The cannabis hype is about to come face-to-face with reality. After Canada legalizes recreational marijuana on Oct. 17, it will only take a quarter or two for clear winners and losers to emerge, according to investors and analysts who follow the sector. There may only be half a dozen major players left three years after legalization. The rest “are going to be bankrupt or out of business because their business models don’t work,” Eric Paul, from Ontario-based CannTrust, said. “This industry is far more brutal than most people understand.” So what will distinguish winners from losers? A meaningful presence in Canada’s recreational market combined with exposure to the international medical market is one key factor.
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