Cannabis: Canadians lost $131 billion on investments, company says

Canadians who invested in cannabis companies lost more than $131 billion. If you do the per capita breakdown, that’s a staggering figure that would mean a loss of about $43,000 per Canadian citizen.

Lawyer Larry Ellis, whose data was collected by Miller Thomson to calculate the total losses of 183 publicly traded and licensed cannabis growers, points out to CTV National News: ”

From a thriving industry to a largely smoke-free industry, this is just one example of the current state of the Canadian cannabis industry. Many are now responsible for the rollout of federal legalization, but note the thriving black market.

Levon Kostanyan thinks he’s found the perfect spot to set up a cannabis retail store on a busy pedestrian street in downtown Toronto. He opened in September 2021, but was forced to close after 12 months.

Kostanyan says he has three years left on his lease. With $6,000 a month in rent, he admits, “Bankruptcy might be the only way out of here.” He spent nearly $300,000 on his retail store, with his family lending most of the money.

“The license for this place cost $10,000. Then I did all the renovations, which was about $150,000. We had $50,000 in inventory, which means we’re already at $280,000, not including employee salaries or overhead,” Kostanyan told CTV National News. I’m here.

When he chose his location, there was a black market cannabis store two doors from his shop, but he either closed soon or the government adjusted the law to continue offering more goods. I thought it would allow me to compete with the unregulated stores that are out there. A stronger edible product.

But it never happened.

“From my point of view, I have done everything. I applied for all licenses. I have done everything. Why should we go bankrupt?”

The store next door sees a steady stream of customers and is able to sell cannabis products without government regulations or taxes.

“They are not doing anything to stop them.

There are now more weed stores in Toronto than Tim Hortons.

Ellis’ company has helped dozens of cannabis companies restructure their businesses.

“This is an industry created by the Canadian government and frankly set to fail,” Ellis said.

CTV National News has been granted access to a 10,000 square foot unregulated growing facility in Southern Ontario. About 1,600 plants were taken on a tour inside, in various stages of development. Crops are harvested and new crops are planted every few months.

Paul Maris called the space a communal medical marijuana facility, saying, “The flowers coming out of this medical setting are no different from those coming out of a licensed facility. They’re on the consumer shelves in the retail market.” The only governance we need to get there is a certificate of analysis.”

Medical marijuana licenses issued by the federal government to just four individuals have allowed thousands of plants to be grown in sprawling establishments, Maris said. He says the cannabis in the facility will be shared with medical users who pay only a quarter of his price to grow plants here instead of purchasing the product from licensed growers and retailers. It states that

But there is shared concern that alarming amounts of cannabis grown using medical licenses in some facilities are pouring into the unregulated market.

“Looking at these different volumes, [medical] As long as the producer is producing it, it’s a good instinct to think it’s going somewhere else,” Ellis said.

Maris disagrees.

“I don’t know about this black market you’re talking about. I know medical patients who get help from cooperatives like this,” he said.

Maris admits to growing marijuana for over 20 years, long before it was legalized, and has a criminal record as a result.

“I had to serve time on a cannabis trafficking conspiracy charge that prevented me from owning more than 10% of the cannabis business,” he said.

Maris believes that it is individuals like himself who have the knowledge that will help keep Canada’s marijuana market viable in the future, and that the federal and provincial governments, as well as the country’s “so-called legal system,” We are asking for the relaxation of restrictions on who can participate.”

A long overdue review of Canada’s cannabis laws is now underway. The federal government claims part of their focus is to foster a “diverse and competitive legal industry, composed of small and large players to replace the illicit market.” doing.

But for Costagnan and many other small retailers, legislative change to cannabis laws comes too late. Hundreds of independent retailers are expected to close nationwide this year.

Costagnan doesn’t skimp on words as he packs the last box and permanently locks the door.

“I was 100% duped by the government.