As Canopy reported a decline in REC market share, Aphria and Aurora have seen their market shares increase.
- A Canaccord Genuity cannabis analyst predicted companies with 10% market share or more will survive for the forseeable future–but those with 1% or 2% share who rely on wholesaling to other LPs will likely not survive.
- Wholesaling relies on white-labelling, a far more widespread practice in the sector than many believe. Some believe LPs are also relabeling lots with older package dates.
- The companies coming through the pandemic best are those that have been adaptable.
Other Sector News:
- The Green Organic Dutchman reported $73.4M in net losses against $3.06M net revenues (up 27% year over year).
- Auxly reported $9.9M in revenues for Q1 2020, up 1,100% year over year. Of those revenues, $9M came from REC sales. The company said these primarily came from 2.0 products, especially the DoseCann brand.