The Inevitable Force of Consolidation

Hello,

Dylan Marrello and I delved deep into the cannabis industry, with a greater focus on tobacco-backed Canadian LPs like OrganiGram Holdings and Cronos Group.

We covered:

• The intricacies of the capital cycle in the cannabis industry

• The boom, bust, and first-mover advantage of Canada's cannabis market

• Why high excise taxes actually benefit incumbent players and how regulation shapes the industry

• Legacy businesses vs. newer entrants

• The advantages of being tobacco-backed

• Whether there's pricing power in this industry

• The illicit and the export market

• If $OGI and $CRON are the likely winners if the US legalizes federally

• Parallels between beer brewers during Prohibition and the cannabis industry today

• Whether beer or wine industry is the more likely endgame for cannabis

• Why Organigram and Cronos are most likely to survive the downturn and thrive in the next cycle

• The risk-reward of investing in $OGI and $CRON.

Enjoy! And make sure to check out Dylan’s Substack here:

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I may, from time to time, have positions in the securities covered in the articles on this website and reserve the right to buy or sell any securities mentioned in this article at any time, without prior notice.

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