The Canadian cannabis industry is asking Ottawa for relief in paying regulatory fees to the government to help distressed pot companies weather the current pandemic this year. 

The National Cannabis Working Group, an offshoot of the Canadian Chamber of Commerce, has asked the Canadian government to excuse a regulatory fee payment — which is equal to 2.3 per cent of a pot company's annual revenue — over the next three fiscal quarters to help support a post-COVID recovery for pot firms. 

What if I told you about a retail business opportunity that had one billion dollars in sales in Canada in 2019 in a new market where sales are projected to nearly double in 2020?  What if I also told you that the product you’d be selling is used by 18% of Canadians and that new user adoption is growing dramatically, particularly among Canadians 45 years and older, who comprise about one-half of new users. You’re in, right?

Now, what if I said that because of federal and provincial regulations, you couldn’t advertise or promote your products in a traditional sense and your storefront windows had to be blacked out so nobody could see the products you’re selling? To pedestrian and vehicle traffic, your store might appear to be closed. Still interested?

The world’s largest cannabis company Canopy Growth (CGC) saw shares fall another 5% Monday after cratering 20% following Friday’s fourth-quarter results, which disappointed against even its own revenue guidance.

Some of the biggest cannabis players when legalization took effect 20 months ago have successfully held on to their dominant positions, despite a year of bankruptcies, downsizings, revoked licences, executive firings, mass layoffs and a long market selloff. 

Licensed producers such as Aphria Inc. and Aurora Cannabis Inc., have increased their market share during the past few quarters due partly to strong sales of dried flower and cannabis 2.0 products such as edibles and vape pens, while Canopy Growth Corp.’s share has substantially eroded from its peak 18 months ago.

Canopy Growth Corp., the largest cannabis company by market value, plunged in early trading Friday after reporting a decline in recreational marijuana use in Canada. The cannabis producer also pushed back its target date to reach profitability.

Fourth-quarter revenue from recreational sales fell 28% from a year earlier, according to Canopy’s earnings report for the period ended March 31. Sales to businesses fell 36%, while sales to consumers rose on an annual basis but dipped 14% from the previous quarter. The company said it closed its Canadian retail locations late in the period due to the Covid-19 pandemic.

Canopy’s U.S. shares plunged as much as 22% to $17.04 in early trading. The stock has gained 3% in 2020 through Thursday’s close.

There was a week in early April that stands as the perfect representation of the topsy turvy reality of the Canadian cannabis industry. 

Near the end of March, while most businesses were entering lockdown, Ontario cannabis retailers were granted essential status, allowing them to stay open with some slight COVID-19 mitigation measures — hand sanitizing stations, plexiglass shields, enforced social distancing.

A different sea of green will greet Canadian farm fields this year as licensed producers begin planting their cannabis outdoors, a move that could exacerbate an existing glut in the market and potentially cause further industry writedowns. 

Health Canada said that about 450 acres of land were used for outdoor cannabis cultivation last year, compared with roughly 350 acres grown indoors. This year, 46 licensed producers can grow cannabis outdoors, almost double the number of licensees from last year. Another 70 companies are still waiting for regulatory approvals. 

CannTrust Holdings Inc. (“CannTrust” or the “Company”) announced that it has received notice from Health Canada that the Company’s licenses for its Fenwick Perpetual Harvest Facility (the “Fenwick facility”) have been reinstated.

Reports suggest more people are drinking alcohol as a result of the pandemic and a new survey suggests Canadians are also smoking more pot.

Deloitte’s Global State of the Consumer Tracker has been monitoring Canadian’s anxiety levels, safety and well-being concerns, consumer travel sentiment, and new spending habits.

The survey found 29 per cent of Canadians who use cannabis say they are toking up more frequently than before the pandemic, while 16 per cent say they are new to pot use because of the pandemic.

Another week,