Hexo Corp. shares fell sharply in Thursday trading after the company announced a sequential decline in revenue as part of its third-quarter earnings just months following recreational legalization of marijuana in Canada.

U.S.-traded shares HEXO, -8.53% HEXO, -8.44%  of the Canadian licensed pot producer fell 8.4% in afternoon trading Thursday.

Marijuana stocks are in demand again after Colorado and Illinois legalize recreational marijuana. While the federal government classified cannabis as a Schedule I substance, states have a more relaxed approach to cannabis possession and use. As of June 2019, a doctor’s recommendation can let users use cannabis for medical purposes in 33 states, four permanently inhabited US territories and the District of Columbia. Recreational marijuana is legal in 10 states.

In case you haven't been paying attention, legal cannabis is a big-dollar business model. Having generated $12.2 billion in global (legal) sales in 2018, according to figures from Arcview Market Research and BDS Analytics, the worldwide weed industry could make a run at $50 billion, or perhaps $75 billion, in annual sales by the time 2029-2030 rolls around, based on various Wall Street estimates.

Marijuana stocks have remained one of the most interesting investor spaces of the modern day. Over the past few years, we have seen a large amount of companies begin to grow massive quantities of cannabis in line with the demand for the substance. With this, only a select few businesses have been able to reach the top of the market as it continues to become more and more competitive. All in all, marijuana is extremely exciting and continues to present investors with new opportunities across the board. The most important factor to always remember is to do the proper research in a given company before investing.

There's no denying that the North American cannabis industry has incredible growth potential. But it's also no secret that the industry is encountering some serious speed bumps.

Quebec's provincially operated cannabis shops made $71 million in sales in their first year and sold the most cannabis in the country in terms of dollars and volume, but they still posted a $4.9-million loss to be covered by the provincial government.

The provincial cannabis corporation -- known as the SQDC -- said in a statement that the provincial government revenues from consumption and excise taxes totalled about $21.7 million between June 12, 2018 and March 30.

The first stores in the Quebec network opened on Oct. 17, the day recreational marijuana became legal in the country.

However, the stores had to reduce opening hours, plagued by supply challenges faced by all provinces no matter what business model they were employing.

Cannabis stocks continued to drop Wednesday with broad losses across North American markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 1.1% to 244.5 points on Wednesday. The Horizons Marijuana Life Sciences Index ETF was down 1.4% to C$18.87. The OTCQX Cannabis Index was down 0.2% at 759.9 points.

Buds

Weekend Unlimited Inc (CSE:POT)(OTCQB:WKULF) shares were on the up-and-up Wednesday after it announced it has successfully produced more than 50,000 high-CBD hemp seeds at its 600-acre Northern Lights Organics farm in British Columbia.

Cannabis is a huge opportunity for investors.

Despite extensive renovations and infrastructure investment, it appears that the chances of a cannabis retail outlet opening in Outlook after all this time may simply go up in smoke.

That’s the concern after the Saskatchewan Liquor and Gaming Authority (SLGA) reportedly denied Dr. Jean Paul Lim’s application to open up for business.  The BC-based Dr. Lim was the recipient of three permits to sell retail marijuana in Saskatchewan in the government’s draw lottery held last spring.  Lim, a clinical instructor at the University of British Columbia, also has the licenses to open up stores in Melfort and Rosetown, both of which also remain unopen.

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