Just under 10% of federal cannabis license holders in Canada have exited the market since legalization in October 2018, according to new government data.
The data suggests that industry predictions of a “rationalization,” or thinning out, among cannabis producers has not materialized, as new entrants far outpaced those exiting the hypercompetitive industry.
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The data was released as part of the government’s public “engagement paper” for the mandated Cannabis Act review, which was initiated in September after an unexplained one-year delay.
The paper also asks a series of questions pertinent to the industry to collect feedback, which the government says will inform the legislative review of the law.
According to the data, roughly 95 cannabis license holders left the industry, representing 9.7% of licenses issued during that period.
Of those who exited the industry:
15 were micro license holders, a class of license limited to 200 square meters
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