Canadian cannabis companies have found it difficult to compete with the healthy illicit market that existed pre-legalization. But if there’s one thing that everyone can agree on, it’s that legal companies are still massively over-pricing their products.
One company, Hexo, is looking to finally break away from that pattern. The company is planning to undercut the illicit market with weed at a big discount — $4.50 a gram. That’s roughly half the average market price for weed in Canada.
“We’ve listened, we’re removing their reason for not shopping legal,” the company’s CEO, Sebastien St-Louis, told the CBC.
The catch? You’ll have to buy an ounce, which the company is selling for $125, to get the discount price.
All things considered, if they can produce a decent product it could actually be a serious competitor. The cheapest ounces tend to go for $99 in Canada, which vary widely in terms of quality. But then again, so does legal weed. More than half of all Canadians are still opting to purchase their weed from illegal sources.