Three years ago, a purchase was made in Exeter with the promise of turning the community into a key player in Canada's burgeoning legal marijuana industry. However, before any of the 200 expected jobs could be filled or any marijuana seeds planted, it became clear that Canada was already producing more marijuana than the market demanded. As a result, the 1-million-square-foot greenhouse sat idle for two years before being sold for significantly less than its original purchase price. Exeter's experience with the greenhouse reflects the challenges faced by the Canadian legal pot industry as a whole, with analysts attributing the lack of success to the strict distribution regulations implemented by the country. The slow opening of stores in certain provinces, notably Ontario, is contributing to the delay. Additionally, surveys have indicated that a significant number of Canadians are not inclined to embrace this new habit. "We were anticipating it," remarked Mayor George Finch as he stood outside Exeter's historic Town Hall. "It seemed almost too good to be true, didn't it? It's disappointing." When Prime Minister Justin Trudeau's government legalized marijuana in 2018, the main intention was to promote a fairer justice system rather than creating a large new industry. However, investors saw potential in the market, leading to a surge in investment in companies catering to the Canadian and US markets. This resulted in the revitalization of old greenhouses and the establishment of new indoor growing facilities, with newspapers hiring journalists to cover this new beat. Just like plastics in the movie "The Graduate," marijuana appeared to be on track to become a major industry in Canada. The frenzied investment in marijuana stocks mirrored the dot-com stock boom of the late 1990s, but ultimately ended in a similar collapse. Despite a modest rebound due to increasing legalization in the United States, with New York recently legalizing marijuana and four states voting for legalization in November, a 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 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 growers. Kyle Murray, vice dean at the University of Alberta School of Business, predicts there will likely be a series of business failures in the industry. The situation is being compared to the dot-com boom and subsequent bust. Canopy Growth, Canada's biggest producer, reported a loss of CA$1.2 billion in the first nine months of its current operating year. Mass layoffs have occurred in the industry, leading to large producers merging to increase their strength. Many greenhouses in several provinces have permanently closed. Analysts had high hopes for the marijuana industry in Canada, expecting sales to follow the same pattern as liquor sales in the US post-Prohibition. However, this has not been the case, as seen in the struggles of major grower Tilray based in British Columbia. Kennedy is one of the few remaining leaders in Canada's marijuana industry, facing challenges in competing with the illicit market due to strict regulations. Despite losses and stock declines leading to the departure of many pioneers, Kennedy will continue as a director after a planned merger between Tilray and Aphria. In Ontario, initial plans to sell marijuana through government-owned liquor stores were canceled by a new Conservative government, leaving only online sales through a provincial website. After that, the province has altered its plans twice more, resulting in a disorganized rollout of privately owned shops. Despite an increase in licensing, Ontario has only approved 575 shops so far. In contrast, Alberta, with around one-third of Ontario's population, has 583 shops. Although initial expectations of marijuana profits were too high, Murray believes a successful industry will develop, with the growing number of Ontario shops as evidence. The fact that prices have decreased to be more competitive with street prices should also boost legal sales. Murray stated that the poor start does not necessarily indicate a bad market. He believes that despite the initial involvement of too much money and too many companies, 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 grew by 24% from June to October 2020, despite being previously known as the center of Canada's 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 become profitable. Despite some of the larger growers in Canada turning to foreign markets, particularly for medical marijuana, as their next big opportunity, many analysts are doubtful. According to Brent McKnight, a professor at McMaster University, Mexico's recent move towards creating the world's largest legal market could threaten marijuana production in Canada due to lower labor costs and a more favorable climate. Trade agreements may make it difficult for Canada to restrict imports from Mexico. He mentioned that it would definitely lower prices for local growers. Some are concerned about the impact of large, publicly traded companies taking over the industry as Canada's market consolidates. Before legalization, nonprofit "compassion clubs" were the first to sell marijuana to medical users. Dr. Daniel Werb, a public health researcher, stated that the current focus on corporate profits has excluded many minority community members from the industry. Preliminary research findings have indicated a lack of diversity in the leadership of legal suppliers. Vendors in Indigenous communities have also been uncertain about their legal status, as they are not typically targeted by police raids but also operate outside of the legal system. Ontario has started licensing shops in some Indigenous communities, but there is still concern about the lack of diversity in the industry and the missed opportunity to approach it in a more creative and socially responsible way, according to Werb.