Feeling burned: The first year of legal cannabis has been a complete disaster for investors
https://business.financialpost.com/cannabis/cannabis-business/cannabis-investing/feeling-burned-the-first-year-of-legal-cannabis-has-been-a-complete-disaster-for-investors?video_autoplay=true&fbclid=IwAR0rqFUkB8vLUAddECl5A5noKLoQjoJIHFuzNfJR1xhwIql-sj03XMT83wo
Shares of the 10 largest Canadian cannabis producers have been bludgeoned, yielding an average negative return of more than 57%.
It does appear that Greed is one of the top motivating factors in this Industry.
Kerlow points to the CannTrust scandal as a “tipping point” that placed a stigma on the entire industry. The Vaughn, Ont.-based licensed producer was found to be growing cannabis in unlicensed rooms by Health Canada and has had multiple licences suspended as a result. The investigation and the stock’s collapse have shown investors just how much money they can lose by betting on the sector.
https://business.financialpost.com/cannabis/canntrust-promotional-video-featured-ceo-standing-in-front-of-unlicensed-room-former-employee-claims
Those five rooms, which were not identified in the statement, only received Health Canada licensing in April 2019, two months after the video was published on YouTube.
In an interview with the Post on the day CannTrust announced it was being investigated by Health Canada, Aceto was directly asked if he knew that cannabis was being grown in unlicensed parts of the Pelham facility. “It is a question I have thought about a lot,” he said at the time. ”Getting to understand what happened here is a priority.”
When asked about the video, CannTrust responded with a statement attributed to Robert Marcovitch, a member of the company’s special committee which was appointed by the board earlier this week to investigate the unlicensed growing at Pelham.
The Pot Industry is blaming the Canada Government for not getting anything right e.g. giving out 120 License to much hype.
Looking closely at the Canada model both Australian and New Zealand sadly are going down this same path.
Kind Regards
Herschel Baker
Director Drug Free Australia (Queensland Branch)
International Liaison Director,
Unit 30 23 Macadamia Drive
Maleny Qld 4552
0412988835
Prevent.
Don’t Promote Drug Use.
www.drugfree.org.au