 Hi guys, this is Rich from Rich2VeeLive and I was reading this article here on BNN, Bloomberg and on the cannabis section and this is the breaking news that I think could be hurting the market. 7 pot producers run afoul of Health Canada amid legalization growing pains. Apparently, Health Canada has issued warnings to 7 cannabis producers since October 17 for violating new federal laws against promoting marijuana, the latest post legalization stumble for an industry that has been mired in countrywide product shortages and shipping delays. Since the coming into force of the Cannabis Act, Health Canada has communicated with 7 regulated parties to promote an understanding of the new prohibitions relating to the promotion of cannabis in the Cannabis Act and to bring specific concerns to their attention. Set a spokesperson with Health Canada. All regulated parties contacted have addressed or are in the process of addressing the issues raised by Health Canada. Health Canada declined to identify the pot companies that have not complied with the new laws under the Cannabis Act or what they have done in violation of the spirit of the law. But the statement is a rare admission from the Canadian government that the rollout of legal cannabis hasn't been as smooth as policymakers had hoped. To date, when contacted by Health Canada, licensed producers have been responsive in addressing issues raised by the department concerning promotion activities. Health Canada will not hesitate to take enforcement action to ensure compliance with the law and to disclose details of these activities as appropriate. Now I wonder why they're not disclosing it. Things that make you go hmmm, doesn't it? Under the Cannabis Act, pot companies are prohibited from promoting cannabis or accessories or any services related to marijuana. Those include communicating to youth, testimonials or endorsements associating cannabis alongside the depiction of a person, character or animal or presenting it in a manner that evokes a positive or negative emotion such as glamour, recreation, excitement, vitality risk or daring. Very interesting here. When a violation of the Cannabis Act is identified, Health Canada works with the affected party to promote compliance by ensuring that they are aware of the prohibitions and provide them with an opportunity to comply with their legal obligations. Rebecca Brown, founder of Crowns Agency, which cares to the cannabis industry, said that Canadian pot laws are so new that the nuance behind some of the regulations are subject to interpretation, despite the efforts of some producers to suggest specific use cases to Health Canada to gauge whether or not they would be appropriate. Now it's critical. It's created a situation where there is no choice but to experiment with the new laws, Brown said in an interview with B&N Bloomberg. In fairness to the producers, there was no way to unpack the compliance of specific activities but to try them and see what happens. Meanwhile, the initial two weeks of legal pot have been marred by several operational setbacks in some provinces, including Ontario, whose online store has been mired with overwhelming demand and shipping delays. Product shortages have also been reported in Quebec and Ontario, with the former opting to shut down its provincially run retail stores for three days a week to allow its inventory to catch up with demand. Wow, this has been a nightmare. GMP Securities Analyst Martin Landry issued a report Monday specifying that these issues make it increasingly clear that recreational cannabis sales this year will be much lower than previously expected. The extremely limited distribution network in many provinces, fulfillment challenges in Ontario, inventory shortage in Quebec, and LPs coping with limited availability of excise stamps may take several months to be resolved, Landry said. This is truly an unprecedented scenario, Brown said. You don't usually see a multi-billion dollar industry appear overnight. It would have been naive to think that it was going to be completely functional on day one. Now, this could be causing this widespread crash in the market, which essentially it has been. I mean, really, it's nothing short of just a nightmare right now in the markets in the cannabis sector. Be very careful, guys. Remember, Rich TV Live is strictly for education, entertainment purposes. You can find all the news, all the information at www.richtvlive.com, absolutely free. And if you want to join our secret groups with all of our picks, you can go to the secret stock picks group right here, join absolutely free, and become a member. We are not just investing in these companies. We are working with these companies, and you too can work in this industry. It will eventually hit a bottom, and then it'll come back up. But the news right now is not good. There seems to be a lot of problems with the rollout, and it has definitely been affecting the market. And we have a lot of red throughout the entire cannabis sector right now, unfortunately. So at some point, we will hit a bottom, and it will be a great buying opportunity. But right now, I think we need to be very careful, be very cautious, because the market is very aggressively selling off. You can see all the red right here. And some of the biggest companies like Aurora Cannabis, Charlotte's Web, big companies that are taking it on the chin, Aphria, just getting obliterated today. Still some companies doing well, but for the most part, we are having a lot of bloodshed. So what do you think about this? If you like this, please smash the like button, share the video everywhere, comment down below, seven pop producers run a fowl of Health Canada amid legalization, growing pains. Could this be what is triggering the sell off? Let me know what you think. This is your boy Rich and I'm out. Peace.