Three years ago, a purchase was made in Exeter with the hope of turning the community into a major center for Canada's legal pot industry. However, despite expectations of creating around 200 jobs and becoming a lucrative venture, it quickly became evident that Canada was already producing more marijuana than the demand. The 1-million-square-foot greenhouse sat empty for two years before being sold for one-third of its original price. This story reflects the overall disappointment in Canada's legal pot industry, with analysts attributing the failure to strict regulations on distribution that limit advertising and marketing opportunities. The slow opening of stores in certain provinces, especially Ontario, is contributing to the delay. Additionally, surveys have indicated that a significant number of Canadians are not inclined to try out this new product. "We were excited about it," remarked Mayor George Finch, as he stood outside Exeter's historic Town Hall. "It seemed almost too good to be true, right? It's unfortunate." When Prime Minister Justin Trudeau's government legalized marijuana in 2018, the primary intention was to promote a fairer justice system rather than sparking a new major business sector. Despite this, investors saw potential in the industry, leading to a surge in activity on the Toronto Stock Exchange before legalization. This "green rush" resulted in a significant amount of money flowing into companies looking to cater to the Canadian market and expand into opportunities in the US. This led to the renovation and sale of long-unused greenhouses, such as the one in Exeter, and the establishment of new indoor growing facilities nationwide. Newspapers, which had been downsizing, began hiring journalists to cover the emerging marijuana industry. Similar to the plastics industry portrayed in the movie "The Graduate," marijuana was expected to be the next big industry in Canada. The hype around investments in marijuana resembled the dot-com stock boom of the late 1990s, but ultimately ended in a similar collapse. Despite a slight recovery due to increasing legalization in the United States, with New York legalizing marijuana recently and voters in four states supporting legalization in November, one marijuana stock index remains down approximately 70% from its peak in 2018. Even 2 1/2 years after legalization, many marijuana producers in Canada are still facing significant financial losses. A significant new rival is on the horizon with the recent legalization of recreational marijuana use in Mexico. This could make the business environment even more difficult for Canadian growers. Kyle Murray, vice dean at the University of Alberta School of Business, predicts there will likely be a series of industry shakeouts, comparing the current situation to the dot-com boom and subsequent bust. Canopy Growth, Canada's largest producer, reported a loss of CA$1.2 billion in the first nine months of its current operating year. The industry has been hit by layoffs, leading to large producers merging to increase their strength. Many greenhouses in various provinces have permanently closed. Analysts had high hopes for the marijuana market in Canada, expecting a similar spike in sales as seen in the US after the end of Prohibition. However, this growth has not materialized as anticipated, according to Brendan Kennedy, CEO of Tilray, which lost $272 million last year. Kennedy is one of the few leaders in Canada's marijuana industry who have managed to stay afloat despite the challenges of competing with the illicit market due to strict regulations. Most pioneers in the industry have faced losses and stock declines, but Kennedy will continue as a director after the planned merger between Tilray and Aphria, creating potentially the world's largest cannabis company. In Ontario, the original plan was to sell marijuana through government-owned liquor stores, similar to Quebec, but this was canceled by a new Conservative government in 2018, leaving only online sales through a provincial website. The province's plans have changed twice since then, resulting in a somewhat inconsistent rollout of privately owned shops. Despite a recent increase in licensing, Ontario has only approved 575 shops, compared to Alberta's 583 shops, even though Alberta has a smaller population. While initial expectations for marijuana profits were too high, Murray believes a successful business will eventually emerge, as evidenced by the growing number of Ontario shops. The fact that prices are now more in line with street prices should also boost legal sales. Murray expressed that the poor start does not indicate a bad market overall. He believes that despite the initial challenges, some companies will eventually become very successful and could even become global leaders. A positive aspect is seen in British Columbia, where legal marijuana sales in stores increased by 24% from June to October 2020, showing potential growth in the industry. In Quebec, the government-owned cannabis store operator, Société Québécoise du Cannabis, initially reported a loss of nearly CA$5 million in its first fiscal year, but has since turned profitable. Despite disappointment in the domestic market, some of the larger Canadian cannabis growers are looking to foreign markets, especially for medical marijuana, for future growth. However, some analysts are doubtful of this strategy. Brent McKnight, a professor at McMaster University, believes that Mexico's recent push to establish the world's largest legal market could threaten the marijuana industry in Canada. Trade agreements may prevent Canada from restricting imports from Mexico, and Mexico's lower labor costs and warmer climate could give it a competitive edge. He stated that this would cause prices to drop for local growers, as Canada's industry consolidates to stay afloat. Concerns are rising about the impact on smaller businesses as large, publicly traded companies take control. Prior to legalization, some of the first shops to sell marijuana were nonprofit organizations serving medicinal users. Dr. Daniel Werb, a public health researcher, notes that the current system favors large corporations, pushing minority community members out of the industry. Preliminary research has revealed a lack of diversity in leadership among legal suppliers. Vendors in Indigenous communities are also experiencing uncertainty, as they are not typically targeted in police raids but are also operating outside of the legal framework. Ontario has started to issue licenses for shops in some Indigenous communities. There is concern about the lack of diversity and creativity in the legal cannabis industry, with missed opportunities to approach it in a more innovative way.