The purchase of a greenhouse in Exeter three years ago was expected to bring high-paying jobs and establish the community as a major player in Canada's legal marijuana industry. However, before any jobs were filled or marijuana seeds were planted, it became clear that Canada was already producing more marijuana than the market could support. After two years of sitting empty, the greenhouse was sold for a significantly lower price than it was originally purchased for. This experience in Exeter reflects the overall challenges faced by Canada's legal pot industry, with analysts attributing the lack of success to the strict regulations on distribution that limit advertising and marketing opportunities. The slow opening of stores in certain provinces, especially Ontario, is a contributing factor. Surveys have indicated that a significant number of Canadians are not interested in trying out a new habit. The mayor, George Finch, expressed disappointment outside Exeter's historic Town Hall, saying, "We were excited about it, it sounded almost too good, didn't it? It's unfortunate." When Prime Minister Justin Trudeau's government legalized marijuana in 2018, the primary intention was to create a fairer justice system rather than to establish a thriving new industry. However, investors saw the potential for profit, leading to a surge of interest in marijuana-related companies on the Toronto Stock Exchange. This "green rush" resulted in a flurry of investment in companies looking to serve the Canadian market as well as eyeing opportunities in the US, where more states were also legalizing marijuana. Greenhouses that had been dormant were renovated and sold for high prices, and new indoor growing facilities sprang up nationwide. Newspapers, which had been downsizing, began hiring journalists to cover the emerging marijuana industry. Just like plastics in the movie "The Graduate," marijuana appeared to be on track to become Canada's next big trend. The frenzy of investments resembled the dot-com stock boom of the late 1990s, ultimately resulting in a similar crash. Despite a slight recovery due to increased legalization in the United States, with New York and four other states legalizing marijuana recently, a marijuana stock index remains down about 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 rival is emerging with Mexico's recent legalization of recreational marijuana use. This could potentially make the business environment more difficult for Canadian marijuana growers. According to Kyle Murray, vice dean at the University of Alberta School of Business, there may be a series of consolidations in the industry as a result. The situation is likened to the dot-com boom and subsequent bust, with Canopy Growth, Canada's largest producer, experiencing losses of CA$1.2 billion in the first nine months of its current operating year. Mass layoffs have affected the industry, leading to major producers merging in order to increase their strength through size. Many greenhouses in multiple provinces have permanently closed down. Analysts had predicted that the marijuana industry in Canada would experience a significant increase in sales similar to the liquor industry in the United States after Prohibition ended. However, the expected growth did not materialize, as stated by Brendan Kennedy, the CEO of Tilray, a prominent grower based in Nanaimo, British Columbia, which reported a loss of $272 million last year. 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 many pioneers being ousted, Kennedy will continue as a director after the planned merger between Tilray and Aphria, expected to create the world's largest cannabis company. In Ontario, sales were initially planned to be handled through government-owned liquor stores, similar to Quebec, but were canceled by a new Conservative government in 2018, leaving only online sales through a provincial website. The province has altered 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, while Alberta, with one-third of Ontario's population, has 583 shops. Although initial expectations for profits from marijuana were too high, Murray believes a successful business will eventually emerge, as indicated by the growing number of shops in Ontario. The decrease in prices closer to street prices should also boost legal sales. Murray suggested that despite the poor start, it does not indicate a bad market overall. He believes that with time, there will be successful companies that become global leaders. British Columbia, once a hub for illegal marijuana, has seen a positive growth in legal store sales from June to October 2020. In Quebec, the government-run cannabis store operator, Société Québécoise du Cannabis, initially lost nearly CA$5 million in its first fiscal year but has since turned a profit. Despite disappointment in the domestic market, some major Canadian growers are looking to foreign markets, particularly for medical marijuana, as their next opportunity. However, many analysts are doubtful. Brent McKnight, a professor at McMaster University, believes that Mexico's recent steps towards creating the world's largest legal market could pose a significant threat to marijuana cultivation 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 mentioned that this would definitely decrease prices for local growers. With the industry in Canada needing to consolidate in order to survive, there are concerns about the impact on smaller players as large, publicly traded companies take over. Before legalization, many of the first shops selling marijuana in defiance of Canadian laws were nonprofit "compassion clubs" serving medicinal users. The current system, focused on big corporate growers and profits, has marginalized many individuals from minority communities in the industry, according to Dr. Daniel Werb, a public health researcher and drug policy analyst at St. Michael's Hospital in Toronto. Werb's research group has found 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 operating outside of the legal framework. Ontario has started licensing shops in some Indigenous communities, but there is still a lack of diversity and creativity in the industry according to Werb.