Last Updated on 14th September 2020

Investors and companies are losing billions as the black market remains one of the most popular ways to buy cannabis in Canada. The deregulation was for both medical cannabis and recreation cannabis. The largest issue we believe remain the quality of medical cannabis is still nowhere near the high quality of the blackmarket grow. They have years of experience with terpenes and the best growing condition and the regulated market is just not competing as it should. The choicest weed is not just about quantity its about quality it is something that needs to be improved before the black market will disappear.

When legalisation of cannabis happened in Canada there was much rejoicing throughout the world. But things are not turning out as well for a variety of reasons.

Legal weed is garbage

According to a Canadian government survey released last month, 40% of the country’s cannabis consumers admitted obtaining the drug illegally since legalisation.

On Reddit, one user described the government’s cannabis as “garbage”.

Consumers report that the cannabis supplied by the government can be mouldy, dry, or take far too long to arrive. Added to that, the legal cannabis has a higher price tag due to taxes.

Omar Yar Khan, from consultancy firm Hill & Knowlton, believes government restrictions have lead to losses of income for businesses. Canadian legislation makes it incredibly difficult to advertise cannabis in ways that would develop their brands.

“It’s very hard to draw loyal consumers away from the illicit market to a legal market when there is very little brand identity amongst the consumer groups.” Mr. Khan said who works exclusively in the national cannabis sector.

Just like the dotcom crash

Anthony Dutton, co-founder and former chief executive of Cannex believes many companies got ahead of themselves.

“It’s just like in the dotcom boom.” Dutton said. “Oracle, Microsoft and other big companies were all around then, and they were profitable.

“And when the little companies began to fail, Microsoft and Oracle and the others picked up the ones they wanted, and the others they just let die.”

However, until then customers will have to wait until the market adjusts and exercise prudence when purchasing cannabis.