Some retailers, like the Ontario Cannabis Store (OCS), offer a small selection of products matching the prices of the black market, though additional tax and shipping costs often hike those prices substantially. Though the company’s trouble began before they lowered prices, the decline in projected revenue as a result of the lower prices was enough to spook shareholders, Soberman said. “When you lower your prices, your margins will also be lower. “Until we make strides on access to legal cannabis, lower prices might not matter much,” she said. In September, the Ontario Cannabis Retail Corp. reported a $42-million revenue shortfall in the last fiscal year, leading the province to order the OCS to re-evaluate its business model.

Source: thestar November 11, 2019 20:40 UTC