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 demanded. After sitting empty for two years, the 1-million-square-foot greenhouse was sold last year for a fraction of its original price. The disappointment felt in Exeter over the failed venture reflects the challenges faced by the legal pot industry in Canada as a whole, 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. Additionally, surveys have shown that a lot of Canadians are not inclined to try out a new habit. The mayor, George Finch, expressed disappointment outside Exeter's 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 aim was to promote a fairer justice system rather than creating a significant new industry. However, investors had a different perspective, leading to a "green rush" on the Toronto Stock Exchange as money flooded into companies seeking to capitalize on the Canadian market and potential opportunities in the US. This resulted in old greenhouses being renovated and sold at high prices, like the one in Exeter, and new indoor growing facilities springing up nationwide. Newspapers, which had been reducing staff, began hiring journalists to cover the emerging marijuana industry. Similar to the rise and fall of plastics in the film "The Graduate," marijuana was anticipated to be Canada's next big industry. The investment frenzy mirrored the dot-com stock boom of the late 1990s, ultimately leading to a similar crash. Despite a slight rebound due to increasing legalisation in the United States, with New York recently legalising marijuana and four states voting in favour of legalisation in November, one marijuana stock index remains significantly down from its peak in 2018. Even 2 1/2 years after legalisation, many marijuana producers in Canada are still experiencing substantial financial losses. A significant new rival is on the horizon; Mexico recently passed a law allowing recreational marijuana use. This could make the competition even tougher for Canada's cannabis growers. Kyle Murray, vice dean at the University of Alberta School of Business in Edmonton, predicts there may be some difficult times ahead for the industry, comparing it to the dot-com boom and subsequent crash. Canopy Growth, Canada's biggest producer, reported a loss of CA$1.2 billion in the first nine months of its current operating year. There have been widespread layoffs in the industry, leading to large producers merging to increase their strength through size. Many greenhouses in various provinces have permanently shut down. Analysts had high hopes for the marijuana industry in Canada, expecting sales to skyrocket like liquor sales did in the US after Prohibition ended. However, this expectation has not been met, as Brendan Kennedy, the CEO of Tilray, a major grower in British Columbia, stated that the industry has not progressed as quickly as anticipated. Tilray reported a loss of $272 million last year. One of the difficulties in competing with the black market is the strict regulations in place. Kennedy is one of the few remaining leaders in Canada's marijuana industry as many others have faced losses and been ousted. A merger between Tilray and Aphria is set to create the largest cannabis company globally, with Kennedy continuing on as a director. In Ontario, the initial plan was to sell marijuana through government-owned liquor stores, but this was scrapped by the new Conservative government, leaving only online sales as an option. 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, while Alberta, with one-third of Ontario's population, has 583 shops. Although initial hopes for marijuana revenue were overly optimistic, Murray believes a successful business will eventually emerge, as indicated by the growing number of Ontario shops. The fact that prices have decreased closer to street prices should also boost legal sales. Murray acknowledged that the poor start does not necessarily indicate a bad market, attributing the initial struggles to an influx of money and companies. Despite this, he believes that some companies will eventually find long-term success and potentially become global leaders. One positive development has been the growth of legal marijuana sales in British Columbia, which saw a 24% increase from June to October 2020, particularly notable considering the province's history as a hub for illegal marijuana production. The government-owned cannabis store operator in Quebec, Société Québécoise du Cannabis, initially lost nearly CA$5 million in its first fiscal year, but has since turned a profit. Despite disappointment from larger growers in Canada, some are looking towards foreign markets, especially for medical marijuana, as a potential opportunity. However, many analysts are doubtful of this strategy. Brent McKnight, a professor at McMaster University, believes Mexico's recent strides towards creating a legal marijuana market could pose a threat to Canadian growers. Trade agreements may prevent Canada from stopping imports from Mexico, and Mexico's lower labor costs and warmer climate could give them a competitive edge. He stated that this would definitely lower prices for local growers, and there are concerns about smaller businesses losing out as larger publicly traded companies take over the industry. Even before marijuana was legalized, some shops were already selling to medical users under the guise of nonprofit compassion clubs. The current focus on profits and large corporate growers has marginalized minority groups in the industry, according to Dr. Daniel Werb, a researcher at St Michael's Hospital in Toronto. Research has shown a lack of diversity in the leadership of the new legal suppliers. Vendors in Indigenous communities have also been left 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 of these communities, but there is still a lack of diversity and creativity in the industry, according to Werb. He believes there was a missed opportunity to approach this industry in a more innovative way.