Toronto, Ontario and Canada as a whole could be facing a massive wave of cannabis business closures this year.
According to blogTO, Canada has about 3,200 cannabis stores and there are about 1,200 retailers in Ontario alone.
But financial pressure and market saturation could spark a significant amount of closures soon.
According to the report, Canada could see up to 1,000 cannabis businesses close, or about one-third of the total.
The figure comes from a recent letter to shareholders sent by Sundial Growers CEO Zach George.
He cited “bizarre behavior” and said licensed producers are “still prioritizing market share and revenue over capital preservation and profits.”
“Most retailers are struggling to be profitable, and we are starting to observe a trickle of closures on a weekly basis. I expect to see massive store closures in Canada,” he said.