A weed company run by the owner of the Edmonton Oilers has fallen on hard times. Maybe a Connor McDavid endorsement could help?
Driving the news: Canadian cannabis retailer Tokyo Smoke is closing 29 of its nearly 170 locations to try and avoid bankruptcy. Dispensaries have been closing left and right, while only about a fifth of cannabis producers reported a profit last year.
- Since legalization in 2018, some of the industry’s biggest players, including Aurora Cannabis, Tilray Brands, and Canopy Growth, have fired workers or closed facilities.
Why it matters: Expectations for Canada’s weed industry were once higher than Canadian national treasure Seth Rogen, but the reality of the legalized market has been grim. Those in the industry point to the number of sellers drastically outpacing the number of consumers.
- High government fees and strict regulation on THC levels in legal products have also been criticized for stifling profits.
Zoom out: It's not just dispensaries and producers burning cash (and unused inventory). Canadians have reportedly lost more than $131 billion from investing in cannabis businesses.—LA