Legislative blocks leave cannabis firms out in the cold

Author: Jimmie Franklin | Published: 24 Jan 2020

Regardless of legislative reform in Canada and accompanying market excitement in both the US and EU, cannabis companies are failing to maintain momentum, while retail and wholesale investors are either too cautious or simply blocked from participating in the burgeoning market.

Global regulatory divergence has rendered cannabis companies in Canada – many of which had expected rapid global expansion – unable to grow, and left grappling with relatively small domestic markets.

"When cannabis legalisation was first on the agenda in Canada, we had borderline hysteria about the amount of money people thought they could make," said Nick Pateras, Europe managing director at Materia Ventures, a Canadian company specialising in CBD and medical cannabis. "However, three to five years of excitement shifted into broader concerns about how quickly the market was growing, regulatory twists, and how quickly profits would surface."

Pateras explained that even certain states within Canada, such as Ontario, have not...