Cannabis prices have been eroding for two years running. That’s great news for those inclined to smoke or ingest reefer, but for investors, Mary Jane has been one expensive date.
The upshot: Declining weed prices are forcing cannabis growers and dispensaries to shelve expansion plans. Intensifying the situation are rising interest rates, making borrowing increasingly expensive. Another never-ending malady exacerbating the situation is the lack of federal regulatory reform, particularly regarding cannabis players’ access to the banking system.
Some cannabis companies have turned to consolidation to help remedy at least some of those problems.
And yet, there is another headwind blowing in the face of cannabis investors, according to McAlinden Research Partners, and that is persistent and significant oversupply of product, a situation consolidation will do nothing to alleviate.
One might think that shrinking prices would encourage more consumption and sh