Will cannabis stocks continue a great run or are tough times ahead, be cautious, read this https://cannabis.net/blog/news/canadian-cannabis-investors-cautious-is-another-market-slump-just-around-the-corner

1. 5/29/2020 Canadian Cannabis Investors Cautious - Is Another Market Slump Just Around the Corner?
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2. 5/29/2020 Canadian Cannabis Investors Cautious - Is Another Market Slump Just Around the Corner?
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Canadian Cannabis Investors Cautious - Is
Another Market Slump Just Around the
Corner?
The market is rising quickly on legalization hopes but is a marijuana slump ahead?
Posted by:
christalcann, today at 12:00am
Canadian investors cautious - is another market slump around the
corner?
Canada’s cannabis market looks in danger of hitting the skids following the news that one of the country’s biggest
investors is selling o large swathes of its assets – and at any price. Aurora is arguably Canada’s most high-pro le listed
cannabis company, so the news that it has sold its Jamaica asset for around 75 percent of its CDN$4.5 million value for

3. 5/29/2020 Canadian Cannabis Investors Cautious - Is Another Market Slump Just Around the Corner?
https://cannabis.net/blog/news/canadian-cannabis-investors-cautious-is-another-market-slump-just-around-the-corner 4/15
the purpose of liquidating cash has created understandable unrest in the market.
A market ling from the Ontario-based company said that the business had accepted an o er of CDN$3.4 million for its
Jamaica business. It is one of several overseas assets that Aurora has recently divested in what it says is a strategic
decision to dedicate its focus and resources on domestic production in Canada.
Is the market slowing?
The logic is sound enough, but Aurora’s subsequent acquisition of Reliva (https://www.prnewswire.com/news-
releases/aurora-cannabis-to-strategically-enter-the-united-states-with-acquisition-of-reliva-llc-a-market-leading-mass-
retail-cbd-platform-301063067.html) to enter the US market ies in the face of this Canada-centric change of direction.
The point of interest about the sale in Jamaica is that this asset was expected to form a base for establishing growth in
the Caribbean. In fact, it never even began production and had stood idle for the entire period of Aurora’s ownership.

4. 5/29/2020 Canadian Cannabis Investors Cautious - Is Another Market Slump Just Around the Corner?
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Taking a broader perspective, it becomes manifest that the company’s decision is part of an industry-wide reassessment
of investments in Jamaica. It demonstrates a bizarre disparity. The cannabis market is growing rapidly in the US, as
increased legalization and social acceptance open the door to a wave of online retailers selling weed related products
(https://mmjdirect.co/). Yet on the sun-kissed island with its long history of kicking back and enjoying a smoke, the
marijuana trade seems to be in a state of slow-down.
Delano Seiveright heads up Jamaica’s Cannabis Licensing Authority (https://www.cla.org.jm/) (CLA). He suggested in an
interview with local newspaper The Gleaner that the problem comes down to companies in the burgeoning cannabis
sector trying to do too much too soon. He said that some had “overextended themselves” and were struggling to come
to terms with the many learning curves in this unique sector.
Local decline
However, there is more going on here than a boom and bust cycle reminiscent of the dotcom bubble. Even if you
entirely remove the inexperienced new entrants from the equation, Jamaica’s cannabis industry is looking less than
healthy.
In what was expected to be a golden era for the sector, sales between small Jamaican businesses, such as farmers and
herb houses, have shown steady decline. Sales in February hit a record peak of $123,400, but this gure dropped to
$47,500 in March before plummeting still further to $18,000 in April.
There has been plenty of hype over the booming market for medical marijuana and this is an area on which Jamaica’s
businesses have been eager to focus. But while there is no speci c sales data available here, the rumors emanating
from those within the industry suggest that this niche is faring no better.
Recalibrating the market
It is against this background of uncertainty, local decline and the global Covid-related market slump that Canadian
cannabis companies and investors are operating. In recent years, they have been snapping up assets and licenses in
locations across the world, Jamaica included, at any cost. Now the truth is dawning that these are unlikely to generate
the returns that were being touted, they are being forced to recalibrate. Everywhere you look, assets are being either
divested or dramatically written-down (https://www.investopedia.com/terms/w/writedown.asp).

5. 5/29/2020 Canadian Cannabis Investors Cautious - Is Another Market Slump Just Around the Corner?
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An example of this principle in action concerns The Green Organic Dutchman (TGOD), a Mississauga-based business
that specializes in premium organic cannabis products. Last month, it disclosed a CDN$4.3 million write-down on its
investment in Epican, one of Jamaica’s foremost cannabis businesses. The devaluation did not have any direct impact on
Epican’s ongoing operations, but it is a clear signal that TGOD does not expect its Jamaican investments to meet their
market expectations.
TGOD has also written-down a handful of other international assets that it holds on its books. The company has simply
cited “market conditions” and, like Aurora, says it now intend to focus on cultivation operations within Canada and to
withdraw from importing cannabis from Jamaica and other overseas locations.
Jamaica remains optimistic
Seiveright feels that the Coronavirus pandemic has been the primary trigger for the current slowdown. As such, he
believes there is room for cautious optimism in the medium to long term. He said that at the beginning of the year,
investors had ambitious growth plans, but these were formed around Jamaica’s tourist season.
Such strategies were blown out of the water by the Covid lockdown and travel restrictions, with investors being forced
to either postpone or rethink their plans in order to cut their losses and reduce operational expenditure.
He said that the continuing uncertainty over when things will return to some form of normality is only making things
worse. It leaves investors in “wait and see” mode at best or “full-on exit” mode at worst. However, he also noted that
there are some remaining bullish. The CLA is continuing to issue licenses and export authorizations to plenty of new
overseas businesses.
He pointed out that the global growth of the cannabis market is something that is not going away and is con dent that
“a few months or a year from now” things will settle down and cannabis exports will become “a huge priority” for
businesses in Jamaica that have the infrastructure and international partnerships in place.
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news-goes-aurora-high-times-la-butane-and-more)
CANNABIS MARKET NEWS - GET FINANCIALS AND IDEAS HERE! (https://cannabis.net/blog/videos/marijuana-business-
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10. 5/29/2020 Canadian Cannabis Investors Cautious - Is Another Market Slump Just Around the Corner?
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NEWS
Recreational Cannabis is Coming to New York City
Research shows that there is “no good evidence” that cannabis arrests in the city have contributed to a decrease in serious crime. In fact, Manhattan district
attorney Cyrus R. Vance Jr. says according to a 6-month study, cannabis arrests “waste an enormous amount of criminal justice resources for no punitive,
rehabilitative, deterrent or other public safety bene t.”

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MEDICAL
5 Legal Things That Are Way More Deadly Than Cannabis Could Ever Be
Cannabis can help those who are overweight or obese; in fact, many people integrate pot into their lifestyle or tness regimen to help shed unwanted weight.