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More Than a year ago, Canada Cannabis made recreational legal. So, why are the people still there on The Black market?

If Canada legalized marijuana over a year ago, it seemed like everyone, everyone, wanted to break into the market.

The media get the nickname frenzy Canada's "green rush" as investors like Snoop Dogg and the former head of the Toronto police force immediately, with a slice of the multi-billion-dollar cake.

would, However, like the Gold Rush of the 1850s, the Shine soon fades, leaving the gold hunters in the dust.

"It doesn't take to detect a rocket scientist, that these shares were traded on fantasy and not based on any fundamentals," says Jonathan Rubin, CEO of New Leaf Data Services.

With decades of experience in the energy commodity markets, Mr. Rubin saw the legalization of Cannabis in States such as Colorado and California, in the United States and later Canada) as a "once in a lifetime" opportunity, in the Ground Floor of a brand new product.

"I had this Epiphany, that today is a commodity like any other commodity," he told the BBC.

What that meant was that, as The Price of wheat or pork wholesale price of Cannabis will fluctuate with the market. To keep track of so, instead of investing in the Cannabis itself, Mr. Rubin started and leaf, The Price of Cannabis in States where it was legal. Investors and others in the industry to pay for access to this data.

This business model, Mr. Rubin has given an interesting view of how the market has unfolded.

In Canada, he says, the rollout was disappointing.

"haven't you had said the growth in sales and earnings, you have imagined," he said. "I don't want to say it is a mistake, But the frustration is definitely rations. "

wholesale prices have declined by around 17%, as New sheet started, the tracking data, which has kept profit margins tight for the producers.

sales have also slowed, according to Statistics Canada .

this led to a roller coaster ride for the shares of publicly traded Cannabis company.

In may 2018, the Canadian producer of canopy growth headlines when it became The First marijuana company to list on the New York Stock Exchange.

Six months later, doubled the share price in approximately, when it hit a high of $52. 03 (£39. 77) a share.

Now, the stock is back to where it was, and your competitors have suffered similarly dramatic losses.

Growing painsThere were early signs of problems.

If Cannabis was legal at 17. October 2018, it was not deliver enough to satisfy the demand.

Long lines, and the residues of online orders, plagued consumers. The producers were not sure what strains would be very popular, where, and kinks in the chain have yet to be ironed Out .

Tweed is one of the brands owned by canopy growth, to understand one of the biggest legal Cannabis producers "Try what strains should we grow, in what formats and in what quantities - we have a great job, But we don't say nail everything," canopy President Rade Kovacevic.

patchwork provincial laws have also made it more difficult to get, products for the consumer. While it is easy to buy Cannabis in some places, in others brick-and-mortar stores are few and far between.

This is particularly true in Ontario, Canada's most populous province. Bureaucracy and a limit on The Number of Cannabis outlets have provided to rollout slowly. Retail-were granted licenses by lottery, and the province instead of The Number of licenses used at 24, to a population of 14. 5m.

Cannabis supply and demand

In kilograms

source: government of Canada where there is a lack of once was, now is the manufacturers have too much product, in part because of the lack of retail.

In September, the dried Cannabis flower in Canada. But the producers had a total of approximately 165,000 kilograms of finished and unfinished goods ready for sale, or More Than enough to meet the demand for a whole year.

Mr Kovacevic, the blame for the lack of retail in Ontario for a lot of his company sorry.

"I think that the lack of continuity in the points of purchase across the country slows down the transition from The Black market to the legal market," he said. "It was a challenge. "

The Black market is still thriving when the government announced plans to legalize its decision to Cannabis , one of their main reasons is the reduction of The Black market.

But Statistics Canada estimates that about 75% of the Cannabis consumers in illegal Cannabis .

"There is a very strong resistance to the legal business in the sense that a) more expensive and b) there aren't enough of them. You are not close to you, so that you only have with your local guy as they always do," says Robin Ellis , co-founder of the Toronto-retailer, The Friendly Strangers, and a longtime activist for Cannabis legalization.

With a population of over 3m, Toronto's only five legal Cannabis shops, There were only five retail stores in Toronto, 2019, and you were miles, all concentrated in the city centre, which meant that many people drive the car, if you wanted to buy legal pot.

is Legal, Cannabis is also much more expensive.

increased The retail price of legal Cannabis , the C$9. 82 ($7. 49, £5. 73) a gram in October 2018 to C$10. 65 grams In July ,

Meanwhile, sank to an illegal price of C$6. 51 C$5. 93.

The case for Cannabis is perhaps one of the reasons why the sales are lackluster for the producers is that, in contrast to some health experts, the fears, the legalization of marijuana, in turn, not everyone is a pothead.

in The Past year, the proportion of Canadians using Cannabis rose consumed by 14% to about 17%.

Cannabis sale

In kilograms

source: statistics CanadaUse varies a lot by age, with people between the ages of 25 and 34 consumed The Most Cannabis , followed by ages 15-24 (the minimum legal age for the use of Cannabis varies in Canada from 18-21). Older people consumed, the least likely Cannabis , But use it accelerates much faster than in the other age groups, and the seniors are to buy The Most likely the only legal, weed,

This is in line with the research in the USA shows that in States where Cannabis was legalized,

Cannabis use according to age, self-reported source: statistics CanadaMr Ellis, longtime Cannabis activist, says it is important to remember, despite the industry-wide Growing Pains , legalization is largely a success.

"I don't think the Canadians understand fully, the extent of this change. We have not just making something available quickly - it took 25 years of hard work legalization," he says.

legalization of marijuana has opened a completely new industry for the Canadian economy.

distribution of legal dried Bud flourished from approximately 4,405 kg in October 2018, to 11,707 kg in September 2019.

The pot industry is now worth.

Turning a new leafThings are looking brighter for the New Year , say people in the industry.

In December, the government in Ontario, which, after a slow and troubled start-up, announced the province is more and more Cannabis trade open. It will do away with The Lottery system, the upper limit for The Number of private stores and cancel some of the pre-qualification requirements.

It is welcome news to people who've been trying to get into the market.

"We really look forward to," Mr Ellis says. With his business, the Friendly Strangers, selling Cannabis accessories, and it intends to open as many as 20 licensed retailers in the New Year .

manufacturers also be allowed to open a window-on-the-spot, similar to how some Breweries can sell beer directly to the consumer.

"If Everything Goes smoothly, and follow up, hopefully we will see more of a balance in terms of supply-demand balance," said Mr Rubin says.

Edibles legal in Canada by the New Year , More kinds of products come on the market soon. The government is the alternative to the legalization of Cannabis products, such as food and vapes. These products are expected to hit the shelves in the Christmas season.

up to now, Health Canada has allowed Cannabis oil, dried flowers, seeds and plants sold to the consumer.

Mr. Rubin is expected to help these new products, the sales in the retail sector to grow by 30-40%. The formats are expected to be a hit, especially with people who never tried Cannabis before.

"It's a lot of people Out There that want to go to try Cannabis for the First Time in a format that is not Smoking, or "vaping," says Mr. Ellis.

The new product lines will help attract some of the producers investment. Constellation Brands , which makes Corona beer, has a 38% share in the crown of the roof.

The Company will also start, THC-laced chocolates.

Source of news: bbc.com