Time-sensitive analysis of major developments as they unfold.
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.
MedMen Enterprises is undergoing a slow-motion restructuring of its capital structure and operations in public view as its lenders, led by Gotham Green Partners, equitized the company’s credit facility into something resembling preferred equity.
Hexo Corp. (TSX: HEXO) disclosed that it needs to raise an additional CA$23.6 million – at least – just to satisfy cash needs for fiscal 2020, which total CA$105 million.
The average cannabis stock that we track is down 76% from its 52-week high. What does this all mean for cannabis investors and executives?
New Canopy Growth CEO David Klein is already imposing discipline upon the Canadian market by closing a staggering 58% of the Ontario company’s existing indoor production capacity and 29% of its total production area.
Denver-based Medicine Man Technologies reduced its pro forma revenue guidance but maintained its pro forma margin and EBITDA guidance via a new presentation filed with the SEC that outlines the story and the vision of the company – including a new name.
It was a day of big moves for Canadian cannabis giant Aurora. The company announced:
• A new CEO and the retirement of Terry Booth.
• An enormous current miss and guide down for next quarter.
• Several cost-cutting measures, including layoffs.
• And more.
Three key executives at Harvest Health will surrender a total of 2.4 million stock options back to the company – without compensation – so the options can be redistributed to employees throughout the company. It’s a novel concept, but common equity holders will still be diluted.
Adam Biermen and his super voting shares are no longer in charge at MedMen, which means the dilution of common shares might finally stop. But it remains to be seen if a new CEO can stop the bleeding.
California-based MedMen’s attempts to renegotiate payment terms with vendors – including the use of equity for those payments – raises some big questions about the health of the multistate operator.
The dispute between Harvest Health & Recreation and Falcon International over a failed deal continues to heat up, with Harvest now apparently fighting over a $50 million breakup fee and the two heading to arbitration.
Curaleaf’s $275 million syndicated loan facility announced Friday shows that capital markets are indeed open for companies with positive EBITDA and specific revenue and profit targets.
