While marijuana legalization was a major winner in the U.S. general election, Canadian firms appear to be reveling in the post-election boost more than U.S. cannabis companies.Read More
Since we last looked at the performance of U.S. and Canadian operators on July 10, publicly traded cannabis companies have seen some interesting stock price trends as candidates running for the top offices in the U.S. take positions on marijuana reform. For a week in October, sentiment improved and cannabis stocks rallied on four words […]Read More
Capital markets remain very tight, but they started to open up again for marijuana companies in the third quarter of 2020, as shown in Viridian Capital Advisors’ deal tracker. Yet demand remains much greater than the supply of available funding, driven by the capital intensity of the industry and the limited participation by most institutional […]Read More
The stocks of U.S.-focused operators have rallied while Canada-focused operators have underperformed in the second-quarter earnings season, closing the valuation gap on enterprise value-to-2021 sales. The rally in the United States bodes well for the thawing of the capital markets for U.S. operators – at least for those that can show strong and profitable revenue […]Read More
Already struggling capital markets further tightened by the coronavirus, a declining stock price and an improving legalization outlook for cannabis have combined to derail five of the 10 planned deals in Schwazze’s strategy to consolidate the Colorado market. While COVID-19 actually has improved the long-term investment case for the marijuana industry after state governments deemed […]Read More
Though revenue and profit estimates for the cannabis industry have declined, the upcoming second-quarter earnings season brings the risk of further estimate cuts. California-based KushCo Holdings might be a forewarning for the industry given that it already reported its financials for the quarter that ended in May and supplies many larger cannabis companies. KushCo’s results […]Read More
Average trading multiples for U.S.-focused operators were up slightly versus last week, while the average stock price remained flattish. Canada-focused operators still trade at a premium on sales compared to U.S. operators.
KushCo Holdings is a canary in the coal mine for the cannabis industry with regards to how bad debts are likely to impact profitability in the sector.
Average trading multiples for U.S.-focused operators were roughly flat versus last week because of a decline in estimates. Canada-focused operators still trade at a premium on sales compared to U.S. operators.
It was a week of reckoning for many in the cannabis industry as the coronavirus outbreak has become the straw that broke the cash-challenged camel’s back – or the material adverse change companies are using to change plans made in different times.
Abandoning the targets outlined only a month ago on its fourth-quarter call (the transcript is available here) shows how rapidly the COVID-19 situation is affecting Acreage.
These comp tables provide a benchmark for private investors to evaluate existing and future investments, a way for companies to judge their own valuations for current and future capital raises as well as a menu for public investors to peruse.
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