While recreational cannabis has been legal in Canada for over six months, black market weed sales are still significant in the country.

In the first half of 2019, Statistics Canada reported in August that 42 percent of cannabis consumers bought the drug from illegal sources, up from 38 percent in the first three months of 2019.

That is a significant number of cannabis users turning to the black market, despite legal purchasing options available.

Few in the cannabis community would argue the fact that one of the biggest stories in the movement in the last 5 years was the legalization of adult-use marijuana in Canada. The first large, developed country to legalize on a federal level, Canada was poised to set the tone for legalization around the world.

But, as I feared, Canada’s government has created an industry that is so restricted it has no hope of competing with the black market. Restrictions have created supply issues which have, in turn, kept prices high.

Zero-tolerance policies towards employee cannabis use have been instituted by 40 per cent of Canadian employers surveyed for a recent Conference Board of Canada report.

The survey didn't explicitly define "zero-tolerance," meaning the term could have been open to respondents' interpretations, said Conference Board senior researcher Monica Haberl. But the think-tank's report defined zero-tolerance workplace cannabis policies as those that "(forbid) employees to have any cannabis in their systems." 

Those zero-tolerance policies were more common in safety-sensitive workplaces like transportation and warehousing, as well as the construction, manufacturing, and natural resources industries, the Conference Board found.

Curaleaf posts Q2 profits, highlights guidance of US$1B in revenue next fiscal year 

HEXO Corp. (TSX:HEXO) (NYSE:HEXO), one of the Canadian cannabis stocks, is a consumer-packaged goods cannabis company that creates and distributes innovative products to the international cannabis market. The Company utilizes a hub and spoke business strategy that involves partnerships with Fortune 500 companies. Through this strategy, HEXO brings its brand value, cannabinoid isolation technology, licensed infrastructure and regulatory capability to established companies, leveraging their distribution networks and capacity.

Tilray Inc. is buying marijuana retailer 420 Investments Ltd. of Calgary for $110 million, the British Columbia-based cannabis researcher and distributor said.

The all-stock deal through a Tilray subsidiary, High Park Holdings Ltd., is expected to close early next year, according to a statement by Tilray. The first $70 million in stock is payable on the close of the deal with the remaining $40 million subject to performance milestones.

Like the dot-com boom, it is difficult to pick which cannabis stocks will come out on top. With bullish estimates for many of these companies along with a flurry of activity taking place in the space, it can be difficult for investors to pinpoint which stocks will be the biggest winners.

Often, it’s best to leave this guessing game to the experts. Today we have identified four Canadian marijuana stocks that are among Wall Street’s favourites in the sector. These stocks are estimated to generate returns of more 100%, according to analyst forecasts.

It can be frustrating seeing your stocks fall, and in the last few months that’s pretty much been the cannabis industry as a whole. While a recession certainly could be playing a factor, it seems the honeymoon phase is over for investors looking to get in on the green stuff. With huge growth expected in this industry, some projecting US$200 billion in annual sales in the next decade, some investors might be wondering when they’ll start seeing the benefit of their investment.

Statistics Canada data shows B.C. sold $19.5 million worth of legal pot from October 2018 through June 2019. The only province that sold less was P.E.I., which took in $10.7 million with only a fraction of B.C.’s population.

In its annual report, the B.C. Liquor Distribution Branch said problems with supply and slower than anticipated provincial and municipal approvals resulted in the province’s cannabis industry evolving at a slower rate.

“Managing inventory levels in an environment of product shortages and unknown customer demand is very challenging,” the branch said. “The LDB is currently building inventory levels in anticipation of future public and private retail stores.”

EnWave (TSXV:ENW) (OTC:NWVCF) reported third-quarter results for fiscal 2019 after the market close on Wednesday, Aug. 28.