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Photography by Alexander Aguero
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Slow growth in recreational marijuana sales in Canada is expected to accelerate in October as Canada plans to allow producers to add vods, edibles, beverages and the popular CBD to their dried flower sales. became legal last year. However, Health Canada confirmed Friday in an information session that sales of these second wave products would not begin until the end of December.
This means that the revenues generated by these so-called Cannabis 2.0 products will not become significant until the first quarter of 2020, said Rob Fagan, a GMP Securities analyst, on a note Friday. In the United States, which allows the sale of vape, products become as popular as smoky flowers. So, Canadian marijuana growers love
Cover growth
(GSC),
Aurora Cannabis
(ABC),
Tilray
(TLRY), and
Aphria
(APHA) have been eager to launch vape products.
"This could potentially have a time-lag impact for our forecasts compared to Cannabis 2.0 products," Fagan warned.
Read more in our recent history: Marijuana sales are skyrocketing. Marijuana stocks are not
With its 38% owners
Constellation Brands
(STZ), Canopy claims to have developed cannabis-based beverages that will taste well-known alcoholic beverages, but contain no alcohol or calories. Now, these products will arrive later than expected.
Read our recent interview: Why Aphria is a better marijuana stock than Cronos, according to an analyst
Health Canada has announced that its rules for new products will come into effect on October 17. Producers can then start informing the agency of the products they want to sell. But they can not ship the products within 60 days of notification.
Thus, no vape or edible product will reach retailers' shelves until December 17th.
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