Over 35,000 guests are trying to determine if the cannabis industry in 2020 will be better than in 2019. According to Cam Battley, the director of Aurora Cannabis, 2019 was an exciting year for the cannabis industry but hoped that safeguarding supply will begin to ease in 2020. Companies are still hoping for a better future in cannabis and better results for the cannabis industry in 2020.
The legal cannabis industry is going through an epic tremor, but the cannabis industry in 2020 may look more promising.
“This is 2008 for the cannabis industry,” said Kevin Murphy, President, and CEO of Acreage Holdings. He also compares it to the dot-com bust.
The question remains, which cannabis company will emerge from the bust like the Google of cannabis, and which one will disappear from the cannabis industry in 2020.
“It has been an exciting year, not in the way that the shareholders in this sector would like,” said Cam Battley, director of Aurora Cannabis.
Battley and others are in Las Vegas this week at MJBizCon, the world’s largest cannabis trade conference. More than 1,300 exhibitors and 35,000 participants are trying to determine if the cannabis industry in 2020 will be better than 2019.
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Hope for a better Canadian cannabis industry in 2020
“I think the launch in the state of Illinois will be a great market driver for the entire cannabis industry in 2020 and comes in January,” said Moses Danny of Moses Ventures.
The top six publicly traded cannabis companies have lost a combined market value of $25 billion since the end of March. There are a variety of reasons that can be summed up as one, everything takes longer to deploy.
The cannabis industry has been particularly caught off guard in Canada, where the federal government has legalized cannabis across the country.
“The planned deployment of brick and mortar retail stores did not happen at the pace everyone had anticipated,” Battley said.
As a result, Aurora had to slow down the expansion of production “until the demand was there.”
Battley believes that safeguarding supply will begin to ease for the cannabis industry in 2020 with the opening of new stores.
“Cannabis 2.0” may mean the worst is over
Battley said new cannabis developments in Canada next year should help, including edible products and infused drinks.
Al Foreman of Tuatara Capital owns more than $300 million in two private equity funds looking for good investments. For him, the terrible performance of the industry’s equities reflects the maturity of expectations.
“It started in 2018 with the parade of U.S. IPOs all pointing to prospective estimates based on valuations in 2020 and 2021,” he said. “Our belief was that you had to start reaching your numbers in 2019, so 2019 is the year where financial results mattered.”
Then 2019 arrived, companies began to miss their revenue targets and markets sold. Foreman said that the best companies have started to reach their numbers again and that the market is resizing which is promising for the cannabis industry in 2020.
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