What cannabis shortage? Analyst warns oversupply could become a problem in mere months

In Alberta, a moratorium on new cannabis retail store licences was just lifted. In Quebec, government-run pot stores have returned to normal hours. In Ontario, there are rumblings that a second tranche of retail licences may be on the way, perhaps as soon as the end of the month.

These incremental but significant signs are leading a growing number of analysts and industry observers to speculate that Canada’s cannabis shortage, a problem that has plagued the industry since legalization, may be coming to an end. Some are even starting to contemplate an entirely new problem that could emerge, as early as next year.

“I’m forecasting an oversupply in dried cannabis by January 2020,” said Chris Damas, an industry analyst who authors The BCMI Cannabis Report and has spent years documenting the growth of the domestic cannabis industry.