In a recent article, major US broadcaster CNBC, reported an overview of the Canadian market as it compares to legalization in a handful of US states, and outlined how companies in the northern country are preparing for October 17.
The Canadian cannabis industry is abuzz as the opening of the legalized recreational market is just days away. This major milestone for the evolving space will make Canada the second country in the world to make such a step, and has attracted attention from large corporations from across industry lines. The upcoming change, while exciting, doesn’t come without concerns for companies that have established a foothold in the Canadian market.
In a recent article, major US broadcaster CNBC, reported an overview of the Canadian market as it compares to legalization in a handful of US states, and outlined how companies in the northern country are preparing for October 17. The article quotes Auxly Cannabis Group (TSXV:XLY) CEO Chuck Rifici regarding his concerns on supply vs. demand in the first year of legalization. “Certain provinces and different jurisdictions across the country will have different levels of preparedness for retail,” he said. “I think we will see empty store shelves, because we’ve seen that in every other place in the world that has legalization — a lack of product in the first year. Producers across the country are ramping up production, but I think it will be a while to catch up.”
Auxly has invested in numerous cannabis companies across the supply chain, including FSD Pharma Inc. (CSE:HUGE,OTCQB:FSDDF,FRA:OK9) subsidiary, FV Pharma. FSD Pharma director, Anthony Durkacz, also spoke to CNBC, claiming that despite the volatility in the market, cannabis investments are still sound. He also spoke to the value of legalization in Canada.
“Hopefully we can show America and the rest of the world that legalization is the right thing to do,” he said. “I think it’s important to put the money back into the people’s hands. The government will generate a lot of taxes and revenue and add a tremendous amount of jobs, especially in small-town America. It’s important the rest of the world gets to see this and hopefully follows Canada’s lead.”
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