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 pot 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 demanded. After sitting idle for two years, the 1-million-square-foot greenhouse was sold for a fraction of its original purchase price. The experience in Exeter reflects the broader challenges faced by Canada's legal pot industry, with analysts attributing the failure of optimistic projections to the country's tightly regulated distribution system that restricts advertising and marketing. 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 interested in trying a new habit. The mayor, George Finch, expressed disappointment while standing 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 intention was to create a fairer justice system rather than to establish a booming new industry. Despite this, investors saw potential for profit, leading to a surge in investment in companies catering to the Canadian market and beyond. This trend, known as the "green rush", resulted in the renovation of old greenhouses and the construction of new indoor growing facilities across the country. Newspapers also increased coverage of the marijuana industry, hiring journalists to report on this emerging sector. Similar to the plastics industry in the movie "The Graduate," marijuana appeared to be on track to become Canada's next big industry. The excitement around investments in marijuana mirrored the dot-com stock boom of the late 1990s, but ultimately ended in a similar crash. Despite a slight recovery 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 experiencing significant financial losses. A significant new rival is on the horizon with Mexico recently legalizing recreational marijuana use. This could make the business environment more difficult for Canadian growers. Kyle Murray, vice dean at the University of Alberta School of Business, predicts there may be a series of industry shakeouts similar to the dot-com boom and bust. Canopy Growth, the largest producer in Canada, reported losses of CA$1.2 billion, or around $950 million, in the first nine months of its current operating year. There have been widespread layoffs in the industry, leading to large producers merging in order to increase their strength through size. Many greenhouses in various provinces have permanently closed down. Analysts believed that investing in marijuana would result in a similar surge in sales as seen in the United States after Prohibition ended, but this has not been the case in Canada. Brendan Kennedy, the CEO of Tilray, a major grower in British Columbia, expressed disappointment in the industry's slow progress. 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 replaced, Kennedy will continue as a director after the planned merger between Tilray and Aphria, creating a potentially massive cannabis company. In Ontario, the original plan to sell through government-owned liquor stores 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 uneven 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. Although initial expectations for marijuana profits were too high, Murray believes a successful business will eventually emerge, with the growing number of Ontario shops being a positive indicator. The fact that prices are now more competitive with street prices should also boost legal sales. Murray commented that despite the poor start, it does not indicate a bad market. He mentioned that there was an initial involvement of too much money and too many companies, but eventually, some companies will be successful in the long term and may become global leaders. One positive aspect is the growth of sales in legal stores in British Columbia, which was previously known for its illegal marijuana industry, increasing by 24% 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 become profitable. Despite disappointment among larger growers in Canada, some are looking to foreign markets, particularly for medical marijuana, as their next opportunity. However, many analysts are doubtful, with Brent McKnight, a professor at McMaster University, suggesting that Mexico's recent steps towards creating a large legal market could threaten marijuana growing in Canada. Trade agreements may make it difficult for Canada to prevent imports from Mexico, which has lower labor costs and a warmer climate, potentially giving it a competitive edge. He mentioned that it would definitely decrease prices for local growers. With Canada's industry being forced to consolidate to stay afloat, there are concerns about the impact on smaller players as big, publicly traded companies take over. Before legalization, many of the initial sellers were nonprofit organizations serving those using cannabis for medical reasons. The current focus on corporate profits has pushed many minority individuals out of the industry, as stated by Dr. Daniel Werb, a public health researcher in Toronto. Research has shown a lack of diversity in the new legal suppliers' leadership. Sellers in Indigenous communities have also been affected by the lack of clarity in the legal system regarding cannabis sales. While they are not typically targeted in police raids, they are also operating outside of the legal framework. Ontario has started licensing shops in some Indigenous communities, but there is concern about the lack of diversity and imagination in the cannabis industry. There is a missed opportunity to think creatively about making the industry more inclusive and not solely focused on profit.