The Globe and Mail reports in its Wednesday, Oct. 30, edition that well-capitalized cannabis companies are not living up to investor expectations, with revenues coming up short of the companies' guidance and analyst predictions. The Globe's guest columnist Alex Blumenstein writes that coupled with a handful of scandals -- Canntrust Holdings' illegal grow rooms being the most prominent -- this has caused the bloom to fade from pot stocks. In recent weeks, Canntrust has laid off 140 employees. Hexo recently laid off 200 staff. Mr. Blumenstein says it is a common adage in the start-up world that failure leads to success. He predicts that out of the failure of the early big players in cannabis will be the third act of Canadian cannabis. The optimism of Act 1 has shifted to what seems like an inescapable pessimism of Act 2. Certainly doubters abound, but the promise of Canada's first-mover advantage was never about growing and exporting pot product around the world. It had and always should be premised on applying our intellectual property to global markets.
Canadians should not sell themselves short -- we have an unmatched pool of talent that once again finds itself in the right places at the right time.
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