Is the window for legitimacy in the cannabis sector now wide open? It’s All About Supply & Demand

Is the window for legitimacy in the cannabis sector now wide open? It’s All About Supply & Demand

With the world now coming to a screeching halt with the COVID-19 pandemic, the global cannabis market is perhaps more precariously positioned than ever before. As the S&P hits new lows and the Federal Reserve lowering interest rates, many companies, not just those in the cannabis industry, are feeling the pinch. With billions wiped off markets in a matter of moments, industry mainstay Tilray has been forced to raise $90M for “general corporate purposes”[1] to continue operations. Potential has always been a precursor to the way many investors have looked at the global cannabis industry. While it’s lightyears away from the historic highs that bathed investors in a “green glow,” the past year has been a different story altogether. Companies such as Aurora and Canopy have seen the departure of high level executives, M&A activities have slowed, and to make matters worse, cannabis rescheduling by the World Health Organization (WHO) has been delayed until December 2020 at the earliest[2] and given the impact of COVID-19, this may be optimistic in its own right. So the question must be asked, is the COVID-19 pandemic, actually an opportunity in disguise? According to mjbizdaily, some Canadian stores have seen an “unprecedented” sales surge in product, in some cases, upward of twenty percent.[3] Perhaps similarly to the idea that people need to stock up on supplies as they hunker down for the foreseeable future, in reality the cannabis industry is primed to benefit in much the same way as streaming and entertainment services are…

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Source : CANNANNEW REPORT
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