Hmmm, from what I have read about cannabis prices in Canada and from what I saw while in America, their prices seem to be around $7/gram... but this is cheap cannabis, my opinion is that the average of selling both low grade weed at $6-7/gram and high grade weed for +$20/gram would come to an average of at least $11 dollar.
Also, the barriers for cannabis companies to import will impose significant customs fees making it unjustifiable to be sold at $5 per gram.
The Australian government is moving to make it easy and economical for the Australian cannabis companies to export. I highly doubt that the Australian government will make it cheap and easy for importers when they are trying to pave the way for Australian cannabis growers.
My opinion, the government will box them out with ridiculous customs fees and taxes that importers won't be able to compete with Australian grown cannabis.
From the other side, Auscan might be able to have a large enough facility to create significant price competition, but Warren Buffett made the comment that there is commodity companies that cut into each others margins making it unprofitable and ugly businesses, but there is some commodity type companies such as cereal companies that don't eat into each others margins. I think that cannabis is like cereal.
People will pay extra for high quality cannabis if they can. I give more of a cleaner high and less hangover effect, similar to top shelf alcohol.
Currently, the regulations for growing cannabis create a large cost.
$6 a gram is likely 7-10 years away when Cann Group and Auscan build the barriers of entry to high for anyone to enter.
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