Canada Faces Weed Shortage Two Weeks After Legalization

Photo Credit: Richard Vogel/AP/Shutterstock
October 30, 2018
Updated 21d ago

By Jacqueline Corba

It's been nearly two weeks since Canada opened the retail market for recreational marijuana, and now it faces a shortage of supply across many of the retail operations in a number of provinces.

"Given the robustness of the demand, suppliers clearly did have challenges getting the stores full and adequately supplied," Cowen Managing Director Vivien Azer told Cheddar's CannaBiz Tuesday. "We've heard from the CEO of Canopy Growthー it's going to take them a couple weeks to get the supply and demand in balance."

Hot pot stocks Tilray ($TLRY), Canopy Growth ($CGC), and Aurora ($ACB) now face increasing volatility in the public market.

"We think about disruption and cannabis is surely disruptive. It's surely such a sea change in terms of consumer behavior," said Azer.

While Azer said she was "bullish" on cannabis in the long term, he offered a note of caution: "We do like to remind investors that cannabis stocks are incredibly volatile and not for the faint of heart."

For full interview click here.