The Canadian Marijuana Index is falling ahead of the October 17th legalization date. Down over 2% today, the index has fallen well over 100 points from its September 12th high of 876. Cannabis supply and availability is becoming a central theme as legalization nears.
Cannabis Supply in Question
In a CBC News exclusive, they highlight the dilemma facing many retailers awaiting the recreational legalization date:
“It seems years that Canada has been counting down the months and days for when recreational use of cannabis becomes legal. So you’d think everything would be ready, right? Not quite. It’s already being predicted that retailers will run out of the product – may be not on the first day, but not long after.”
Despite short-term fears concerning cannabis supply, soon the opposite will be true. In a July 7th article, Warning For Marijuana Investors, we warned about that:
“Just like in Colorado, once sufficient supply comes online, we believe prices will correct, and the market will be in a supply glut. Furthermore, the Canadian market is simply too small for the current number of players… more on this shortly.”