We are two weeks in national cannabis legalization. Where is the pot

Part of Cannabis and Investment

Jimmy's Cannabis Store in Martensville, Sask. October 31[ads1], 2018.

David Stobbe / The Globe and Mail

The Alberta Cannabis website is the most common phrase "out of stock" – stamped on more than four of five products listed. For CannabisNL it's worse, with about six out of seven items on display as "coming soon."

In Saskatchewan, the supply chain has pushed Jimmy's Cannabis, a private retailer that purchases directly from licensed cannabis producers. Jimmy's in Martensville opened October 17th and ran out of cannabis the next day. The company's Battleford location has managed to stay open.

"We have had several orders that have not come through," said David Thomas, co-owner of Jimmys. "I do not see a quick solution."

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Welcome to the early days of legal cannabis in Canada, where two weeks in the new market, the widespread predictions of challenge challenges have come to fruition. The governments have been surprised by the demand. The online Ontario Cannabis Store has called it "incredibly high" and now has about a third of what it sold on the first day of legalization. Manufacturers who have never grown cannabis on this scale can not deliver what they promised. Ottawa's approval process has also been slow. At the same time, investors have become skeptical and stock prices for cannabis growers have fallen.

But cannabis companies insist that they will make good their commitments when legalization unfolds. Canopy Growth Corp., the leading producer, said its licensed capacity to grow and sell cannabis by the end of the year will be twice as much as the end of the summer. Canopy said that it will meet all its orders during the first year of legal cannabis.

"We ship goods on a daily basis to the provinces to keep products on the shelf," Canopy spokesman Jordan Sinclair. "I understand that it's frustration. But we're hopeful customers will keep coming back." He added : "It's not a binary problem, the lack of gender equality."

Mr. Thomas on Jimmy's Cannabis is safe. He believes lack of early supply indicates that Canadians have embraced the legal market. "Demand is only unsustainable for the current supply chain." He said there are a number of manufacturers that are "almost ready" to offer new offers.

Legalization in Canada so far has evolved as it did in places like Colorado and Washington State, where legal cannabis took care of a slow start. In Colorado, the first US state that opened a legal recreational and cannabis market in January 2014, it took 11 months before the recreational market had exceeded the long-term medical market.

Some investors have supported themselves. Horizons Marijuana Life Sciences ETF, which tracks the sector, has lost almost a third of its value since a record day before the legalization. Analyst Martin Landry from GMP Securities LP said in a report on Monday that cannabis sales in Canada will be lower this year than expected.

In Alberta, Chara Goodings, a spokeswoman for liquor, spirits and cannabis, said, "We're just aren" I do not think there will be much less than retailers or the audience wants. "

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Four20 Premium Market, a private retail in Calgary, has been able to navigate the situation.

"We've never been out of cannabis," said Ryan Kaye, vice president of the company's business. Four20 will open another store by mid-November and are sure that the supply will not be a problem. "We have been prepared for this," he said.

Alcanna Inc. has five NOVA cannabis stores in Alberta and closed one on Monday due to low supplies, but reopened on Tuesday. Deficiencies could be right in the spring and maybe as long as next summer, said James Burns, CEO of Alcanna. But the business has been good.

"We had a great weekend," Burns said.

Ontario Cannabis Store is facing a barring of customer complaints. Spokesman Daffyd Roderick said that OCS has decided not to do interviews at the time. The OCS has said that the supply is sufficient and has also blamed the rotating strikes at Canada Post for delivery issues. Orders made on 17 October took more than a week to arrive in customers' hands.

Quebec has decided to limit the operations of the 12 cannabis stores to four days a week, Thursday to Sunday, a triage move that started this week.

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In BC, where the province's five largest suppliers all fell, there is still a lot of pot with more than 100 products available. This bounty is due to what the government calls "a unique challenge." The government has opened only a store, in the small town of Kamloops, in addition to the website. However, some existing illegal market transactions have continued to operate in cities like Vancouver, as well as in Kamloops. B.C. The government reported about 22,000 purchases on its website and in the store in the first week, a fraction of 150,000 plus orders in Ontario and 138,000 in Quebec.

The B.C. The government is competing with a highly developed and discerning illegal market, "said Kate Bilney, spokesman for the province's Liquor Distribution Branch. "Consumers can easily access the product."

There are 132 licensed cannabis producers in Canada, up 120 weeks ago. Companies like Canopy hold more than one license. For an experienced manufacturer, it takes about half a year to receive a sales license to get the product on a retail shelf.

Of the licensed manufacturers, there are 58 cultivation licenses, but no sales license. The process of being fully licensed by Ottawa is long, extending over several years. A number of facilities, such as Aurora Cannabis Inc., operate near Edmonton, are partially licensed. It will still be a month before Aurora has plants in all its growing rooms there.

With a report by Mark Rendell

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