CANADA CANNABIS SPOT INDEX (CCSI)
The CCSI declined 0.5% this week to C$6.60 per gram, from C$6.63 per gram last week. The index has dropped 18% over the past four weeks. C$6.60 per gram equates to US$2,204 per pound at current exchange rates.
The stability in prices adds some reassurance to the developing industry. Supply shortages are not expected to be resolved quickly, but the Alberta Gaming, Liquor and Cannabis Commission (AGLC) reported that the situation is slowly improving. Even though some producers had stockpiled product ahead of legalization, issues with packaging and logistics prevented product from hitting the marketplace in a timely manner.
The halt of new Alberta retail licenses remains in place to ensure current licensees can keep their shelves adequately stocked. Ontario announced it will be accepting entries next week from those looking to enter a lottery to apply for the first 25 retail cannabis licenses in the province. There is a C$75 fee and those selected will have five business days to submit their application, a C$6,000 non-refundable fee and a C$50,000 letter of credit. The short time frame for submittal of applications is to ensure that these operations can be up and running by April 1. The retail licenses will be distributed throughout the province – five to the eastern side of the province, seven to the western side, two in the north, six in the Greater Toronto Area and five in Toronto itself.
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Cannabis Benchmarks®, a division of New Leaf Data Services, LLC
4 January 2019 Copyright © 2019 New Leaf Data Services, LLC. All rights reserved