Dan Sutton is blunt about why he thinks licensed producers in Canada don’t have enough legal weed to supply demand right now.
“Most of these guys they’ve been wearing pinstripe suits their whole career. They’ve never spent any time on a farm and they don’t know shit about agriculture,” Sutton, founder of BC-based LP Tantalus Labs, told VICE. [...]
“Most licensed producers still have no idea how to cultivate cannabis in a repeatable way,” he said. He noted Tantalus Labs, which operates a 75,000 square-foot-grow, took two years to design its greenhouse and another two to build it. But he says others in the industry have set up facilities within months, which he doesn’t think is enough time to ensure they are running optimally.
A simple question:
Legalization has been years in the making in Canada, so why don’t we have enough weed?
Answer: Legalization has been years in the making but the bill to legalize recreational cannabis passed on June 19, 2018. Canada officially passed the bill just four months ago.
In the past few years, who would have given the licensed producers, literally, hundreds of millions of dollars to design and build greenhouses to harvest marijuana which they couldn't sell?
Forget that level of capital, the legal marijuana business in Canada was so distasteful a few years ago that the largest licensed producer lost its bank account! Yup, a big bank told Canopy Growth Corporation to find another institution for its account(s). CGC went to a credit union which was more than happy to accept its business. This only changed in January earlier this year when Bank of Montreal decided to do a bought deal financing for Canopy.
So, to answer the question in short:
- Legalization bill was passed only four months ago.
- Before 2018, banks treated marijuana businesses like shit.
Also, the founder of Tantalus Labs stated that his 75,000 square feet operation took four years of effort to design and build. Canopy Growth has 4.3 million square feet of licensed grow space in Canada. Had Canopy tried to be "optimal", then Canada would have an even bigger shortage.
Also, math is hard:
Reached by VICE, Tilray, which had a market cap as high as $20 billion in September but has seen its stock drop by about half since its record high, said it expects to have more flower and oil varieties available “soon.”
"Drop by about half"? The all-time high: $300. Today: $90. That's a 70% drop.