Amid Marijuana Boom, Costs Leave Analysts Dazed and Confused
- Production costs aren’t uniformly calculated across industry
- Margins could shrink as provinces start to purchase wholesale
Marijuana plants grow at a Bonify facility in Winnipeg, Manitoba, Canada.
Photographer: Trevor Hagan/BloombergThis article is for subscribers only.
If there’s one thing that’s still hazy in Canada’s nascent marijuana market, it’s how wide the margins are on that dime bag.
With less than nine months left before recreational cannabis becomes legal in the country, analysts and investors are still unclear who the big winners and losers will be. Some publicly traded pot companies don’t report how much a gram of dried bud costs them to make and if they do, the numbers aren’t uniformly calculated. Moreover, producer margins could start to shrink as provinces start to purchase pot wholesale.