3 Ways Marijuana Legalization 2.0 Will Disappoint Investors
In just over four months, euphoria will strike the Canadian cannabis industry once again. After becoming the first industrialized country to legalize recreational marijuana in October 2018, Canada is prepared to launch derivative pot products by mid-December. This launch of derivatives is being referred to as "marijuana legalization 2.0."
A derivative product simply means a consumable that isn't dried cannabis flower. Vapes are forecast to be the best-selling derivative product, once sales begin, with edibles, nonalcoholic infused beverages, topicals, and concentrates all generating significant sales and juicy margins. As a reminder, traditional dried flower is generally a low-margin product, making the upcoming launch of derivatives a highly anticipated event for money-losing pot stocks.
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