LPs and extractors hold such huge stocks of unfinished inventory that some worry about a price crash.
- Unfinished inventory (an open-ended term applicable to all inventory that is for some reason not ready to sell) has nearly tripled from 118,000 to 328,000 kilograms in the last eight months.
- It’s unclear how much of it can eventually be sold. BMO Capital Markets warned in June that much of the 150,000 kilograms of unfinished inventory LPs reported for March might be too poor quality to sell.
- TerrAscend announced it would miss its revenue targets both for the quarter and the year. CEO Michael Nashat called existing provincial inventories “scary.”
Newswire, Globe and Mail
A total of 13,000 kg of legal dry flower sold in August—making the presently held unfinished inventory equal to 30 times that month’s sales.
The Canadian Cannabis LP Index fell 18.2% in October, the seventh consecutive month of decline, to a new 52-week low and a 31.6% decline year to date.
New Cannabis Ventures
- The Globe ran a deep examination of how “stock promoters, hedge fund managers, investment banks and law firms that have helped raise close to $8-billion from public investors since 2017, and have clipped hundreds of millions of dollars in fees in the process.”
Globe and Mail
An analyst at New York’s Cantor Fitzgerald said the Canadian cannabis industry has hit its bottom and predicted good news over the next year.
- The number of Canadians buying legal REC has doubled in the year since legalization.
- Two US class-action suits are pending against LP Sundial, charging the company didn’t disclose that Zenabis returned $2.5M worth of product contaminated with mould and parts of rubber gloves. So far Sundial has call
MJ Biz Daily
- Italy stripped Aurora of one of the lots the company won this summer, saying Aurora was not in compliance with EU Good Manufacturing Practice (EU-GMP) standards.
MJ Biz Daily