1 Big Problem With Canadian Marijuana StocksPosted by On


At first glance, Canada looks like a marijuana industry paradise given that the drug is fully legal throughout the country. So why do homegrown companies like Cronos (NASDAQ:CRON) continue to struggle there?

In this video clip from Motley Fool Live, longtime Motley Fool contributor delves into one major reason for this in an interview with Cannabis and Healthcare bureau chief Corinne Cardina Jurney. The video was recorded on Dec. 22.

 
 

Corinne Cardina: How are Canadian companies like Cronos at a disadvantage in the U.S.?

Eric Volkman: Well, the big disadvantage is that they can’t sell product here.

Again, marijuana is unambiguously illegal at the federal level, no matter what states do. Again, America, we have federal, states, they don’t talk to each other — whatever! They’ll figure it out… maybe… eventually.

Canadian growers, producers, retailers are limited to Canada. The problem with Canada is, first of all, there’s a lot of competition in every corner of the market, in every segment, from growers to retailers, and every segment has a lot of players. There’s not an awful lot of elbow room, so it’s like is claustrophobia. They’re contained in this market that has its limits.

On top of that, the government, Health Canada specifically, over the past year they have improved, but the pace of licensing…

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At first glance, Canada looks like a marijuana industry paradise given that the drug is fully legal throughout the country. So why do homegrown companies like Cronos (NASDAQ:CRON) continue to struggle there?

In this video clip from Motley Fool Live, longtime Motley Fool contributor delves into one major reason for this in an interview with Cannabis and Healthcare bureau chief Corinne Cardina Jurney. The video was recorded on Dec. 22.

 
 

Corinne Cardina: How are Canadian companies like Cronos at a disadvantage in the U.S.?

Eric Volkman: Well, the big disadvantage is that they can’t sell product here.

Again, marijuana is unambiguously illegal at the federal level, no matter what states do. Again, America, we have federal, states, they don’t talk to each other — whatever! They’ll figure it out… maybe… eventually.

Canadian growers, producers, retailers are limited to Canada. The problem with Canada is, first of all, there’s a lot of competition in every corner of the market, in every segment, from growers to retailers, and every segment has a lot of players. There’s not an awful lot of elbow room, so it’s like is claustrophobia. They’re contained in this market that has its limits.

On top of that, the government, Health Canada specifically, over the past year they have improved, but the pace of licensing…



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