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by Stockwatch Business Reporter

The Canadian Securities Exchange Composite Index climbed 9.59 points to 552.21 Friday; the index lost 19.27 points on the week. Statistic Canada reported that about 4.9 million, or 16 per cent of Canadians aged 15 or older, reported using cannabis in the last three months. This was unchanged from the second quarter of 2018. However, among Canadian citizens aged 65 and older, cannabis use increased to 5 per cent in Q2 2019, up from 3 per cent in Q2 2018.

Statistics Canada also reported that 42 per cent of cannabis users reported purchasing cannabis from illegal sources in the second quarter of 2019. Or perhaps more accurately, 42 per cent of cannabis users admitted to purchasing illegally in Statistics Canada's survey. Three-quarters of all those who consumed cannabis in the first half of the year said quality and safety were the most important factors to consider when purchasing cannabis. After that, the most important factor was price; 42 per cent said price was a main consideration. This 42 per cent likely consists mostly of regular users, a group that accounts for a disproportionately high amount of revenue from marijuana sales. Those who are using cannabis daily are more likely to be sensitive to price, as it is a significant monthly expense for them. It is more typical for casual users to accept paying a little bit more to buy from a legal source. Thus, 42 per cent of cannabis users admitted to purchasing cannabis illegally may underestimate the amount of revenue lost for legal Canadian cannabis companies.

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