Canada’s Stubborn Black-Market Cannabis Problem
Ryan Allway
October 26th, 2020
App, Exclusive, Top Story
Cannabis legalization came with the promise that it would prevent unnecessary incarceration, eliminate the black market and create new revenue for the government. While two of these three goals have succeeded, the black market continues to thrive in both many U.S. states and Canada despite the legalization of recreational cannabis use.
Let’s take a look at the country’s ongoing struggle with black market cannabis supply and how recently public Christina Lake Cannabis Inc. (CSE: CLC) offers a solution.
Christina Lake Cannabis’ stunning 32-acres of licensed cultivation space
Black Market Persists
Canada legalized recreational cannabis two years ago, but many consumers still turn to the black market for their supply. While eliminating the black market has been a key policy goal, a government survey found that 40 percent of Canadians admitted to obtaining marijuana illegally since legalization took place in October of 2018.
Legal prices and taxes have made legal cannabis far more expensive than black market cannabis while online ordering doesn’t let consumers see what they’re purchasing in advance. Many consumers also complain that legal cannabis is often past its prime, especially because it takes so long for mail order products to arrive at their final destination.
Cannabis storefronts promise to help solve some of these issues, but many of the most populated provinces lacked an adequate number of stores. For instance, Ontario had only about 30 stores by the end of the first quarter. The good news is that Health Canada has started to accelerate the number of licenses that it awards for retail storefronts.
CLC’s Unique Approach
Christina Lake Cannabis Inc. (CSE: CLC) is a premier producer of high-quality, low-cost, sun-grown cannabis flower and cannabinoid oil on a 30+ acre property. With over 100 years of combined experience, the company’s cultivation team has embraced advanced operational support (e.g. drones with heat vision) and innovative genetics to be able to produce premium products.
The Company recently completed its initial harvest of more than 33,000 kilograms of cannabis on October 21st. With its innovative outdoor cultivation model, the company’s all-in costs are just 10% to 20% of the cost of indoor cultivation and an estimated half the cost of black-market product.
The legalization of outdoor cultivation in Canada could dramatically improve the black-market situation, especially if Health Canada continues to award new retail licenses. While many companies had already invested in costly greenhouses, outdoor cultivation is empowering newer companies to significantly reduce costs and the impact on energy use.
Click here to receive and investor presentation and corporate updates
Looking Ahead
Christina Lake Cannabis Inc. (CSE: CLC) aims to be cost-competitive with the black market while offering top-shelf products that are the result of cutting-edge cultivation techniques and ideally suited genetics. Recently, the company also announced the commissioning of Vitalis CO2 extraction equipment that will help it ramp up the production of high-value extracts.
While many other cannabis companies have been scaling back their operations, CLC has been scaling up its cultivation to better compete with the black market at scale on economics and quality, helping Canada turn a corner in convincing many of its citizens to abandon black market suppliers to turn toward the legal market for quality and value.
For more information, visit the company’s website or download their investor presentation.
Disclaimer
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
Search CannabisFN
Press Coverage
Psychedelics Index
Top Videos
The producers of O’ Cannabiz have decades of experience producing national-profile events and creating global connections between business communities in the arts, broadcasting, media and technology. They have organized trade summit initiatives with governments around the world. And they have worked closely with sponsors in all levels of Canadian government.
Rob is the co-founding President of Pelorus Equity Group and has more than 18 years of experience in the real estate finance industry. Since the formation of Pelorus in 2010, he has raised more than $175,000,000 in secured real estate transactions. Rob’s primary role at Pelorus Equity Group is the development of strategic alliances with […]
Innovium is a global beverage and foods brands platform that builds on consumer market trends and takes them to scale.
KetamineOne Capital is focused on consolidating medical clinics and becoming a North American leader in mental health treatments.
Network Partners
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.
Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer
