The current cannabis shortage could be stabilized by the spring of 2019, but it could eventually be replaced by a flood of product on the market that will then lead to lower prices and consolidation, say lawyers representing clients in the sector.
“It’s moving fairly quickly, and everyone is trying to get product to market, especially with the demand the way it is now and lack of supply. There is a real push for people to get through the application process and meet some of that demand,” says Michael Posnikoff, partner in the business law group at Norton Rose Fulbright LLP in Vancouver. “I’m dealing with about five clients that have applications in process.”
There are about 130 licensed cannabis producers in Canada right now but there are more than 500 licences still in the queue waiting for Health Canada’s stamp of approval. Even when producers receive their licence to cultivate, typically, it’s still another year before they can sell any product.