Canada legalized recreational cannabis in 2018, but the legal cannabis market continues to struggle even three years later. Observers blame overregulation by both federal and provincial regimes, high taxation, and a thriving black market that continues to sell cannabis at much lower prices. What has this meant for cannabis bankruptcies in Canada, and what lessons can the U.S. learn?  For an in-depth discussion, listen to Episode 3 of Sheppard Mullin’s Restructure This! podcast. We speak with Kathryn Esaw, partner in the Insolvency and Restructuring group at Osler, Hoskin & Harcourt LLP, and Susan Newell, partner in Osler’s Health Industry and Cannabis groups. 

What We Discussed in This Episode:

• What Canada’s federal Cannabis Act governs and the objectives behind the legislation

• What aspects of recreational cannabis sales that the provincial laws govern 

• How the Canadian regime differs substantially from the US, where cannabis is still banned at the federal level but over a dozen states have legalized and regulated it

• The structural challenges that legal recreational cannabis market in Canada faces

• How the COVID-19 pandemic impacted cannabis bankruptcies