Article by Caleb McMillan, Cannabis Life Network
There is a reason the Liberals are waiting to legalize cannabis. An LP (licensed producer) bust is coming, and according to one financial investor, it’s “inevitable.”
Liberal Legalization demands that all cannabis producers are federally licensed and regulated and the longer that takes, the better.
So far, the only “legal” commercial cannabis producers are the licensed producers left over from the unconstitutional MMPR. When cannabis goes recreational, many of them expect to cash in.
In the meantime, they produce and stockpile cannabis (never-mind a few recalls), while the underground market is vilified as criminals by the politicians and then raided by the police.
The goal of Liberal legalization is simply consolidation, meaning, the fewer cannabis producers the better.
Is this a conspiracy theory? A strategy of economic “rent-seeking”? Or, is it following the economic consequences of a state-issued currency backed by, not real savings and capital, but low-interest rate monetary policies?
Even financial investors see the writing on the wall. You need capital to have capitalism.
Anyone getting into the commercial cannabis market now is wasting their time. According to Palmer, it’s “an accident waiting to happen and is a gross misallocation of capital, which will be ultimately wasted.”
Larger companies like Canopy Growth will likely survive the LP-crash, whereas smaller LPs like Aurora could be acquired by the bigger guys.