Three years ago, a purchase was made in Exeter with the hopes of turning the community into a major hub for Canada's growing legal pot industry. However, before any of the anticipated jobs could be filled or a single marijuana seed could be planted, it became clear that Canada was producing more marijuana than the market demanded. As a result, the 1-million-square-foot greenhouse sat empty for two years before being sold for significantly less than its original purchase price. Exeter's experience with the greenhouse reflects the larger Canadian story of high expectations followed by disappointment in the legal pot industry. One reason for this lack of success, according to analysts, is Canada's tightly regulated distribution system which limits advertising and marketing opportunities. The slow opening of stores in certain provinces, especially Ontario, is contributing to the issue. Additionally, surveys have indicated that a lot of Canadians are not inclined to embrace a new habit. The mayor, George Finch, expressed disappointment outside Exeter's historic Town Hall, stating, "We were excited about it. It seemed almost too good to be true, right? It's unfortunate." When Prime Minister Justin Trudeau's government legalized marijuana in 2018, the main goal was to create a fairer justice system rather than to stimulate a significant new business sector. However, investors had a different perspective, leading to a surge in activity on the Toronto Stock Exchange as the legalization approached. This "green rush" resulted in a significant influx of money into companies aiming to capitalize on the Canadian market as well as potential opportunities in the United States. As a result, previously unused greenhouses were revamped and sold at high prices, and new indoor growing facilities emerged nationwide. Newspapers, which had been reducing their staff, hired journalists to cover the growing marijuana industry. Similar to plastics in the movie "The Graduate," marijuana appeared to be on track to become the next big thing in Canada. The investment frenzy mirrored the dot-com stock boom of the late 1990s, but ultimately ended in a similar collapse. Despite a modest recovery due to increased legalization in the United States, with New York legalizing marijuana recently and four states voting for legalization in November, one marijuana stock index remains down by approximately 70% from its peak in 2018. Even 2 1/2 years after legalization, many marijuana producers in Canada are still experiencing significant losses. A significant new competitor is on the horizon as Mexico recently passed a law legalizing recreational marijuana use. This could make the business environment even more difficult for Canadian cannabis growers, according to Kyle Murray, vice dean at the University of Alberta School of Business. He compared the situation to the dot-com boom and eventual bust, predicting a series of shakeouts in the industry. Canopy Growth, Canada's biggest producer, reported losses of CA$1.2 billion in the first nine months of its current operating year. The industry has been hit with layoffs, leading to large producers merging to increase their size and strength. Many greenhouses in several provinces have permanently shut down. Analysts believed that the marijuana industry in Canada would experience rapid growth similar to the liquor industry in the United States after Prohibition, but this has not been the case. Brendan Kennedy, the CEO of Tilray, a major grower based in Nanaimo, British Columbia, stated that the industry in Canada has not progressed as quickly as expected, resulting in his company losing $272 million last year. Kennedy, a prominent figure in Canada's marijuana industry, has faced challenges competing with the illicit market due to strict regulations. Despite many industry pioneers being ousted due to losses and stock declines, Kennedy will continue as a director after the planned merger between Tilray and Aphria, which is set to create the world's largest cannabis company. In Ontario, sales were initially planned to be through government-owned liquor stores, but this plan was canceled by a new Conservative government in 2018, leaving only online sales through a provincial website. The province has changed its plans twice since then, resulting in a uneven rollout of privately owned shops. Despite an increase in licensing, Ontario has only approved 575 shops, compared to Alberta's 583 shops with a smaller population. Although initial expectations for marijuana profits were too high, there is confidence that a successful business will eventually emerge, evidenced by the growing number of shops in Ontario. The decrease in prices closer to street prices should also boost legal sales. Murray stated that despite the poor start, it doesn't mean that it's a bad market. He mentioned that initially, there was too much money and too many companies involved, but eventually, there will be some successful companies that will become global leaders. A positive aspect has been seen in British Columbia, where sales in legal stores grew by 24% from June to October 2020, showing progress in the formerly illegal marijuana industry. In Quebec, the government-owned cannabis store operator, Société Québécoise du Cannabis, initially lost nearly CA$5 million in its first fiscal year but has since turned profitable. Despite disappointment among some of the larger growers in Canada, who are looking to foreign markets, particularly for medical marijuana, for growth, analysts are doubtful. According to Brent McKnight, a professor at McMaster University, Mexico's recent push to create the world's largest legal market may pose a threat to marijuana growing in Canada due to trade agreements, lower labor costs, and a more favorable climate in Mexico. He mentioned that this would cause local growers to face pricing pressures. Concerns have been raised about the impact of Canada's industry consolidation on smaller players as larger, publicly traded companies take over. Before legalization, compassion clubs were the first to sell cannabis to those using it for medical purposes. Dr. Daniel Werb, a public health researcher, noted that the current system favors large corporate growers, pushing minority communities out of the industry. Research by Werb's group has shown a lack of diversity in the leadership of legal suppliers. Vendors in Indigenous communities are also in a state of uncertainty, not typically targeted by police raids but also operating outside the legal framework. Ontario has started issuing licenses for shops in some of these communities. Werb expressed concern about the lack of diversity and imagination in the cannabis industry, suggesting that there was a missed opportunity to approach it in a more creative and non-profit manner.