With capital still difficult for LPs to obtain, a representative of Canaccord Genuity—Canada’s largest cannabis bank—said “Yes, there are going to be bankruptcies.”
- Evolve’s cannabis ETF SEED rose from its opening price of $20.48 to $30.66 at its height. On January 27, it was trading for $11.61.
Globe and Mail
- Evolve CIO Elliot Johnson said, “Over-regulation in the Canadian market has stifled cannabis sales and dampened the entrepreneurial spirit that originally attracted so many investors.”
Bank of Montreal cannabis analyst Tamy Chen increased her target price for Canopy from $25 to $40, and upgraded the stock from “hold” to “buy,” based on stories that value-priced REC brands are outselling premium brands.
- Critics continued to wonder why Canopy, according to Seeking Alpha, “took a month after launch to tell the public the company wasn’t ready to produce THC beverages at scale.”
Meta Growth (formerly National Access Cannabis) operates 33 REC stores across the country, but reported a 7.4% quarter-over-quarter decline in Q1 revenue. Still, the $501,000 sales-per-store nonetheless beat the Alberta average of $278,000.
Twitter—David George-Cosh, NewsWire, Twitter—Michael J. Armstrong
- Meta CEO Mark Goliger credited the decline to increased REC retail competition in Alberta.
The REC beverage industry is taking longer to get off the ground than some might have hoped.