Cannabis enterprises invest CA$700 million in Atlantic Canada, report estimates

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Investments by almost two dozen federally licensed cannabis producers in New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland are anticipated to attain 700 million Canadian dollars ($532 million) by the finish of the year, according to a new report from a nongovernmental policy study organization.

The estimate highlights the financial influence that marijuana enterprises have had on Atlantic Canada’s economy because cannabis was legalized 1 year ago.

Across the 4 provinces, shoppers have spent a total of CA$119 million on adult-use cannabis because final October.

On the other hand the report from the Atlantic Provinces Financial Council (APEC) notes that the illicit marketplace nonetheless dominates, and provincially licensed retailers and federally licensed producers are struggling to turn a profit.

APEC estimates that the 20 licensed producers in Atlantic Canada have an annual production capacity of 200,000 kilograms (441,000 pounds).

APEC estimates that will rise to about 300,000 kilograms annually by the finish of subsequent year, with the cultivators employing two,800 workers.

APEC’s figures do not involve ancillary enterprises.

Provide shortages stymied the early days of legalization, but producers have largely worked via the challenges of scaling their cultivation facilities, APEC says.

Immediately after opening 20 government-run shops, New Brunswick is taking into consideration switching to a private retail model, even though Prince Edward Island and Nova Scotia are sticking with the public model.

Edibles, extracts and topicals will commence hitting shop shelves in December, and APEC estimates the new item categories will increase cannabis sales by 1 third.

Other notable figures from APEC’s report:

  • The regulated marketplace in the 4 provinces represents 21% of all Canadian sales.
  • The 20 licensed cannabis producers is an boost from seven in September 2018, just ahead of legalization.
  • Cannabis New Brunswick reported a loss in the 1st quarter of 2019/2020.
  • PEI Cannabis Management Corporation reported a loss in 2018/2019.
Matt Lamers can be reached at [email protected]

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