Cronos Group Inc., a well-connected Canadian LP led by CEO Michael Gorenstein, confirmed that it is in discussion with tobacco giant Altria Group Inc. about a potential investment.
The biggest winners, hands down, in the Canadian cannabis supply shortage are all of the smaller, later-to-market producers. It buys them time to get to market, and it will take longer for the first wave of suppliers who are already in stores to build up the brand loyalty they were counting on.
With the biggest opponent to cannabis out of the way, the federal government has an easier path to pro-cannabis measures. That will open up the floodgates for publicly traded cannabis firms, especially those operating in the United States.
When downturns hit a cannabis stock, that can be a good thing - It creates opportunity following the immediacy of the bad news. Even investing legends will tell you that it's a fool's errand trying to pick the exact lowest price as the only time to get in on a stock.
