At this time last year, cannabis stocks were one of the hottest investments on Wall Street. That’s because Canada, just a month earlier in Oct. 2018, had become the first industrialized country in the modern era to legalize recreational marijuana. Our northern neighbor also looked to be on track to give the OK to derivative pot products by no later than October of the following year (2019).
We were also witnessing a number of new states in the U.S. give the green light to marijuana, paving the way for what looked to be the rapid ascent of North American cannabis sales. And then those expectations got violently shoved out the window.
The cannabis bubble has burst
Since legal weed sales commenced in Canada, persistent supply issues have kept product from reaching dispensary store shelves. Part of this blame falls on Health Canada, the regulatory agency responsible for overseeing the license application process for the pot industry. Health Canada has been so overwhelmed with applications that it’s taking many months — if not longer than a year in some instances — for growers to begin planting, processing, or selling their cannabis. [Read more at Nasdaq]