As of January 2024, Canada is home to more than 3,600 recreational cannabis retail shops and this number is increasing annually with a single store to every 10,000 Canadians. The retail sector has been facing multiple challenges and one is surely overabundance of stores within smaller communities. Too many retailers compared to users of cannabis. The use of cannabis has remained relatively the same, while multiple retailers and online sales forces are competing for this marketplace.
Failures within the retail field are not a surprise, as Tokyo Smoke closes its multiple stores, and most shops’ profit margins remain small and diminishing over time. Mass closures may happen within certain provinces such as Ontario where situations of multiple retailers are situated right beside a competitor. Massive amounts of revenue have been collected by provincial governments while these stores remain open to every possible financial flux possible.
The black market remains healthy and profitable. An excuse to legalize pot was to challenge illegal pot sales and make it difficult to sell this pot outside of legal means. 22% of Canadian pot smokers get their supply from the black market. They say the pot tastes better and is slightly less costly. Legal pot management is costly and this cost is passed onto the customer. With gummy sales growing, the cost of management by legal means is difficult and costly too.
It seems the government may need to rethink its policy regarding cannabis and the possibility of legalizing further types of illicit drugs in the future. A total ack of imagination exists within the policy network where old-fashioned prejudice towards addiction and the use of narcotics is seen as criminal and threatening to society. All the while the number of traffic stops due to drivers under the influence of narcotics continues to grow, and the use of drugs by the youthful generation continues to be a problem. A solution to our society’s problems will never come from present-day authorities.
Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca
Toronto-Dominion Bank is facing fines totalling about US$3.09 billion from U.S. regulators in connection with failures of its anti-money laundering safeguards.
The bank also received a cease-and-desist order and non-financial sanctions from the Office of the Comptroller of the Currency that put limits on its growth in the U.S. after it was found that TD had “significant, systemic breakdowns in its transaction monitoring program.”
More coming.
Companies in this story: (TSX:TD)
The Canadian Press. All rights reserved.
TORONTO – Shares of Toronto-Dominion Bank were down in early trading following reports the bank is nearing a settlement with U.S. regulators regarding failures of its anti-money laundering safeguards.
Multiple media reports said the bank will pay billions in financial penalties as well as face non-financial sanctions that will put limits on its growth in the U.S.
TD has said it will hold a conference call later today, but did not offer details regarding what the call would be about.
The Canadian bank has been working to resolve investigations into failures in its anti-money laundering program in the U.S.
The probes have been a major overhang for the bank and helped scuttle its proposed US$13.4-billion acquisition of U.S. bank First Horizon Corp.
TD shares were down $5.78, or about 6.6 per cent, at $81.33 by late morning on the Toronto Stock Exchange.
This report by The Canadian Press was first published Oct. 10, 2024.
Companies in this story: (TSX:TD)
The Canadian Press. All rights reserved.
LEAMINGTON, Ont. – Cannabis company Tilray Brands Inc. reported a loss of US$34.7 million in its first quarter, compared with a loss of US$55.9 million in the same quarter last year, as its net revenue rose 13 per cent.
The company, which keeps its books in U.S. dollars, says the loss amounted to four cents US per diluted share for the quarter ended Aug. 31 compared with a loss of 10 cents US per diluted share a year earlier.
Net revenue totalled US$200.0 million for the three-month period, up from US$176.9 million in the same quarter last year.
The increase came as Tilray’s beverage alcohol business earned net revenue of US$56.0 million, up from US$24.2 million a year ago, while its cannabis business saw net revenue of US$61.2 million, down from US$70.3 million in the same quarter last year.
Tilray’s distribution business earned US$68.1 million in net revenue, down from US$69.2 million, and its wellness business earned US$14.8 million in net revenue, up from US$13.3 million a year ago.
On an adjusted basis, Tilray says it lost a penny US per share in its latest quarter compared with an adjusted loss of four cents US per share a year earlier.
This report by The Canadian Press was first published Oct. 10, 2024.
Companies in this story: (TSX:TLRY)
The Canadian Press. All rights reserved.
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