There's a billion grams of cannabis stuck in vaults across Canada. The billion dollar question now is: What do you do with all that legal pot?
Health Canada released industry-wide cannabis data for October earlier this week showing that about 1.1 million kilograms of cannabis are being stockpiled by producers nationwide.
That's an all-time high for the sector, following the second legal harvest of outdoor cannabis in Canada. That harvest pumped an additional 220,461 kilograms of legal pot into the market, up 67 percent from the previous month.
It's a glut that continues to weigh heavily on the industry, possibly spelling further writedowns and facility closures in the months to come, analysts say.
Het Shah, managing director of Cannabis Benchmarks, said that Canada's monthly consumption rate comes to about 30,000 kilograms which means that three years worth of supply is currently idle.
Read more at bnnbloomberg.ca