Monday, February 3, 2020

Cannabis: Valuations and Government Tax Revenue, Both a Farce

How has Statistics Canada been "tracking prices" in an illegal market ? 

Also, with these revenues (and growing) compared to the market caps of these companies, clearly there is/was a bubble. 

"...Ontario had the most revenue from cannabis with $217 million in sales, followed by Alberta with $196 million and Quebec with $195 million. Nationwide the sector pulled in $907 million in sales in that first year.

Statistics Canada has also been tracking prices since before legalization and has found so far that illegal weed is falling in price, in order to compete with legal shops. There is also an approximately $4 per gram gap in prices with legal cannabis selling for around $10 per gram and illegal products selling for closer to $6..."

http://nationalpost.com/news/politics/cannabis-taxes-not-bringing-the-cash-government-expected

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