For the past year, the marijuana industry has been an absolute train wreck. Since the industry exploded higher during the first quarter of 2019, virtually every pure-play cannabis stock has lost between 50% and 95% of its value.
To our north, regulatory-based supply issues are predominantly to blame, with Health Canada slow to approve cultivation and sales licenses, and Ontario (Canada's most-populous province) struggling to assign dispensary licenses. Meanwhile, in the U.S., high tax rates on legal weed have made it difficult for licensed producers to complete with black-market growers. And, as the icing on the cake, obtaining financing for North American pot stocks has been hit and miss.
But there is one exception to the rule: Innovative Industrial Properties (NYSE: IIPR).