Competition among cannabis growers in Canada has reached epic proportions, with each producer apparently viewing legalization as a "green rush" of sorts, in which the producer who grows the most pot wins.

Earlier last month, Canadian cannabis firm Aurora Cannabis Inc. (TSX:ACB) announced its intention to build a new production facility which would increase its overall production of marijuana by 430,000 kgs per year. The facility, which the company has dubbed "Aurora Sun" is expected to encompass a 21-acre facility, with approximately 50% more capacity than its current flagship production facility codenamed "Aurora Sky situated at the Edmonton airport.

This increase in potential sector-wide production capacity has led to what some analysts are believing will lead to an eventual supply glut in the quarters to come, with unrestricted supply impacted prices.

Prices are also expected to be pushed down further via relatively strong negotiating power wielded by various Provincial buyers who will be buying on behalf of government-run retail stores and/or private stores which will be heavily regulated by government entities.

While Aurora has made a rather large investment in Liquor Stores N.A. Ltd. (TSX:LIQ) to bolster the company’s retail position relative to its peers, the premium Aurora has paid for the "honour" of investing in Liquor Stores has been questioned by some.

For investors concerned about the supply and demand fundamentals of this sector, waiting until post-legalization for a better picture of where cannabis producers will be positioned looks to be the intelligent way to go at this point in time.

Invest wisely, my friends.