Canadian pot prices rise 17% after legalization

 

Canadian first-mover cannabis advantage at risk from fast-growing U.S. firms

Canadian pot companies are beginning to face a growing threat from their southern neighbours. Bloomberg reports that the global advantage Canadian pot companies have enjoyed is on shaky ground given domestic sales limitations and exclusion from the huge potential of the U.S. market, as some U.S. multi-state operators begin to gain ground.

Canadian licensed producers risk missing out on a market estimated to be worth US$22 billion in legal spending by 2022, which forecasts Canadian sales to reach US$3.8 billion by then.

Meanwhile, several Canadian firms have established international operations in Europe and South America, but that isn’t really a substitute for U.S. growth, according to one leading cannabis investment banker tells Bloomberg.

Aurora boosts the size of Alberta pot production facility by one-third

Aurora Cannabis may soon have the biggest pot production facility in the world. The company said Wednesday it is boosting the size of its Medicine Hat, Alta. high-tech Aurora Sun facility by one-third to 1.62 million square feet as the firm seeks to ramp up production amid growing global demand for medical cannabis.

The increased size would boost production to more than 230,000 kilograms of cannabis per year, Aurora said, adding it expects Aurora Sun to complete construction by the end of the year.

The average cost of a gram of Canadian pot up by 17 per cent: Statscan

A crowd-sourced survey compiled by Statistics Canada found that the cost of a legal gram of cannabis in Canada appears to be rising as illegal cannabis prices drop.

Compiling data from 1,129 new submissions, with 936 passing the editing and screening process, revealed that the average cost of dried cannabis has increased by more than 17 per cent since legalization.

Canada’s national statistics agency reported a post-legalization unweighted average price of $8.04 per gram for dried cannabis from both legal and illegal sources combined.

That legal price, which includes online and in-store purchases, amounts to approximately 17.3 per cent more than the pre-Oct. 17 price of $6.85 which included black market and medical marijuana pricing.

https://www.bnnbloomberg.ca/cannabis-canada-daily-canadian-pot-prices-rise-17-after-legalization-1.1242607