If pot is eventually allowed to cross state borders, high-cost growers will be undercut
It is wise to know where your cannabis comes from. Intoxicated by bullish demand forecasts, pot investors aren’t paying nearly enough attention to supply.
U.S. states currently decide whether to legalize cannabis within their own borders, even though the drug remains illegal at the federal level. It is a misnomer to speak of a single U.S. pot industry, considering the patchwork of self-contained cannabis economies across the country.
Pot can’t cross state lines today, even between two states where the drug is allowed. Should federal laws change, high-cost growers and areas with less favorable climates for cannabis growing will be undercut.
Read more at:https://www.wsj.com/articles/cannabis-investors-are-zoning-out-about-supply-11561626711