By CCN: Health Canada is fed up with issuing cannabis growing licenses that weren’t actually being used to grow cannabis. As a result, new applicants looking to sell, produce, or process cannabis must already have a complete and compliant facility.
The rush to cash in on legalized cannabis, and the ease with which Health Canada licenses could be obtained, led to more than 100 applicants rushing to file paperwork.
What Health Canada’s Stunning Policy Reversal Means for Cannabis Stocks
Health Canada found it was wasting resources approving licenses when cannabis growers had nowhere to grow:
“As a result, a significant amount of resources are being used [at Health Canada] to review applications from entities that are not ready to begin operations, contributing to wait times for more mature applications and an inefficient allocation of resources”.
Well this is huge news. So much for seeking funding after a paper review of your application.
Statement from Health Canada on changes to cannabis licensing: https://t.co/722ZqDKlGe
— Trina Fraser (@trinafraser) May 8, 2019
The effect on cannabis growers will be two-fold. First, it should speed approval for established cannabis companies, allowing them to ramp up production to meet demand.
Second, it will lock out early-stage pot companies, who will have to put up as much as $40 million to build a facility before becoming licensed.
Hedge Fund Shorts Canadian Pot Stocks, Goes Long on US Market
This will only contribute to the insane hype over Canadian cannabis stocks, which is why a new hedge fund seeks to short Canadian pot stocks, while going long on the US market.
The fund is partially run by Boris Jordan, Chairman of Curaleaf Holdings, one of several major Canadian cannabis stocks. Not only are Canadian cannabis stocks way overhyped, Jordan adds:
[Canada’s] “stringent marketing restrictions…[make it] almost like they have one hand tied behind their back…I have a lot of respect for the Canadian LPs but I don’t want…