Within the U.S., cannabis is now legal in 16 states including Washington, D.C., with legalization taking effect in two more states, Virginia and New Mexico, later this year, Mondaq reported. This state-level trend toward legalization in the U.S. continues even though cannabis remains illegal at the federal level. However, in Canada, cannabis has been legal at both the federal and provincial levels since 2018. The opening of these markets has generated significant investment on both sides of the U.S./Canadian border. In January 2021 alone, North American cannabis companies reported more than $1.6 billion in capital raises. Despite this activity, numerous cannabis enterprises continue to fail or are currently experiencing financial distress. In many cases, this distress has resulted from oversaturation and a glut of market participants (legitimate and not) or an inability to keep up with (or a mistiming of) an ever-changing regulatory environment in both Canada and the U.S. It may also be a sign that the legal cannabis retail market has reached a peak, as reports show potentially sustained declines in month-over-month retail sales of cannabis products. Read more.