Very few catalysts. Current federal government unfriendly to private sector and have recently announced plans for additional taxes on cannabis production revenues. Provinces are also piling on additional taxes of their own. Regulators seem focused on tax grab as provincial and federal governments face mounting public criticism of large accumulation of debt. Federal (and some provincial) elections are in 2019. Licensed producers can only sell recreational cannabis to provincial governments, who control the distribution, and set the price. LP’s will see higher margins on medical sales and exports. The game is rigged, and the house always wins. It’s the investors who have financed the creation of Canada’s entire cannabis production system who are to sacrifice returns so the government can undercut the black market enough to take their share. And so is life.
Shorts are currently completely in control. Rebound is expected in the fall as we approach October. Currently own 1 share @ 4.00. No short position.
Shorts are currently completely in control. Rebound is expected in the fall as we approach October. Currently own 1 share @ 4.00. No short position.