The ones that I'm aware of are all private companies that operate in the medicinal space (not recreational). The product quickly became commodotised and only the lowest cost producers/manufacturers or those with high brand value will likely still be around in five years time. Canada looks to have already hit rock bottom, I believe over 50% of all bankruptcy filings by Canadian businesses in 2024 were cannabis companies (ouch). Prices are starting to rise again in Canada but that might also be because they have protectionist measures in place to stop imports...
A reasonable person would probably think I was crazy for investing in this industry but I didn't do it blind, I searched for the lowest cost producer who I felt had a good handle on where the industry was heading and what the challenges were. That's how I ended up in ECS, they are selling the lowest cost product in the Australian market (OzSun) and are still able to make money from it. They also signed an eight year deal with the owner of one of the top 5 cannabis strains in the world (Zkittlez) to grow and sell it here and into Europe. It will be an expensive product, but if there are customers who prefer to buy Moet over sparkling wine then there will be customers buying Zkittlez and ECS will make a killing on it.
Does BXN sell its gummies B2C? If not, the sooner they hop on that bandwagon the better. My view is that all companies should be attempting to build brand value as quickly as possible at the moment.
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