Cannabis companies scale back plans as access to capital tightens

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This week, The Green Organic Dutchman (TSX: TGOD) announced it is having difficulty funding its expansion plans (and, thus, its revenue and EBITDA estimates) via commercial banks and equipment leasing, and the Canadian company said it “may revise the construction schedule” if it is “unable to obtain sufficient financing on reasonable terms, within the required time frame.”

This followed the termination of MedMen Enterprise’s (CSE: MMENacquisition of PharmaCann, which was also blamed on the Los Angeles-based company’s inability to get funding for expansion plans.

And just a week ago, New York-based iAnthus Capital Holdings (CSE: IAN) announced it has raised $20 million with a commitment for another $80 million to fully fund its growth plans.

But if you read between the lines, the additional $80 million is far from guaranteed.

What do these have in common? Business plans that assumed additional capital raises.

Read more about how to this could play out at Investor Intelligence.