The Canadian cannabis market is in rough shape. Thanks to a surfeit of licensed cultivators (greater than 1,000 presently and growing), onerous packaging requirements, a thriving black market, a limited international market, heavy excise taxes, vast oversupply, and stubbornly high prices in the medical marijuana segment, Canada's fledgling cannabis industry is undergoing a wave of forced mergers and bankruptcies right now.
To survive this hypercompetitive landscape, some of the country's largest cultivators have decided to diversify their revenue streams to include alcohol, ornamental flowers, vegetables, and even venture capital investing activities. Nonetheless, these efforts have largely failed to halt the steady decline in cannabis company valuations in the country. To wit: Canada's largest publicly traded cannabis operators have all lost a significant amount of value since the start of 2023:
Source Fool.com