The week was busy with earnings misses and beats, legislative progress, contract and deal adjustments as well as reduced expectations.Read More
As cannabis company fundamentals weaken and capital gets tighter, common equity investors need to recognize the possibility of major dilution from the equitization of debt that is due soon. This raises the cost of equity for any companies with debt.
It was not a good earnings week for Canadian cannabis companies. Canopy Growth announced price cuts and wrote down significant amounts of inventory, while Aurora Cannabis pulled back its expansion plans. Have we hit bottom in Canada cannabis?
It was a week of alternative financing and increasing competition in CBD, all of which may have a bigger impact on the investing environment.Read More
Columbia Care’s cashless acquisition of The Green Solution (TGS) will buy EBITDA and cash flow in Colorado that will offset losses elsewhere, as well as access a new market and brands.
It seems that Andy Berman wasn’t executing Harborside’s cost cut and cash generation plans fast enough, and has been replaced as CEO only four days after our Executive Webcast with him.
Capital is shifting to focus on profitable business models – either positive EBITDA today or a clear path to positive EBITDA with the deployment of incremental capital – and it is shifting to nonequity sources.Read More