The seized marijuana all came from designated growers who were licensed to grow for up to two patients each under the old system. These are the same home gardens which Health Canada ordered to be shut down, claiming that they are all mold-ridden, unsafe and unhealthy. Yet at the same time, it's allowed for these growers to sell their product to the newly licensed producers, who can then flip it to patients at a profit? How does any of this make sense?
Some say that the proliferation of home cultivation licenses has also helped to drop prices, but I don't think this has had a major impact. The amount of cannabis being produced by all licensed patients is not that significant when compared to the total level of underground production in Canada. It's shrinking U.S. demand that is driving prices down here.