For years, the marijuana industry has had investors seeing green. That's because the potential of the legal cannabis industry has appeared to far outweigh the risks. Promises were made of substantial production, a rapid ramp up in sales, and a quick push into profitability as consumers moved into legal channels to gobble up cannabis products.
While robust expectations remain, with up to $200 billion in annual worldwide sales predicted in a decade, the actual rollout of legalized marijuana in Canada and in select U.S. states hasn't exactly gone to plan. In Canada, supply issues have been persistent since recreational sales launched more than 11 months ago. Meanwhile, in the U.S., a combination of oversupply and exceptionally high tax rates in certain legalized states have encouraged black-market producers.
In short, things have not gone well, and that's been reflected in marijuana stock valuations over the past six months. But things could be about to go from bad to worse with the very first delisting from a major exchange possibly being imminent.