Investors aren't all that thrilled with cannabis stocks, and it's understandable. Despite all the hype around legalization, there simply hasn't been any substantial progress to have investors believe that significant reform (beyond just rescheduling cannabis as a less dangerous illegal drug) is around the corner. And many marijuana producers are struggling because of the federal ban on pot. Companies can't transport products across state lines, and even obtaining banking services is a challenge.

But whether legalization takes place or not, there is going to be significant change coming to the marijuana industry one way or another. The losses companies are experiencing and the cash they are burning through simply make the operations of many of them unsustainable. And that could lead to a whole lot more consolidation.

Boris Jordan is the executive chairman of Curaleaf (OTC: CURLF), one of the U.S.'s largest multistate operators. Last year, the cannabis producer generated more than $1.3 billion in revenue. But while the company has more than doubled its top line in a span of three years, its losses have grown at a much faster pace.

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Source Fool.com