Time-sensitive analysis of major developments as they unfold.
The accretive acquisition builds on the company’s strategy of rolling up the cannabis software sector, and it gives entry into Canada via an opportunistic use of cash to acquire a capital starved competitor.
The cannabis industry needs to improve capital return analysis and investor communication to public company standards if it is to successfully raise capital, as it is increasingly normalizing and competing for capital against traditional public companies industries.
Amid volatile stock prices, acquisitions based on share-swap agreements are more likely to close than those with a lot of cash consideration or with a fixed-dollar amount to be paid in equity.
Rapidly changing cannabis market conditions are forcing companies to dial back growth plans, restructure acquisitions, change guidance strategy, reduce spending and alter funding plans.
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?
Current conditions in the natural stores channel will make it difficult for CBD companies selling into that space to produce consistent revenue growth and profits.
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.
You would think the sting of a 30% stock price drop after Hexo Corp.’s preannouncement of a huge miss for fiscal fourth-quarter revenue and withdrawal of 2020 revenue guidance would have persuaded company management to introduce some conservatism when communicating with investors.
Recent skepticism of the cannabis sector may be overblown, especially for companies that are fully funded – as highlighted by Aphria’s latest quarterly results.
This morning MedMen Enterprises (CSE: MMEN) announced they are ending their agreement to acquire PharmaCann, terminating their CFO Michael Kramer and pushing out their EBITDA break-even to end of calendar 2020.
Our key expectation for Curaleaf was for the guidance for 2020, as we last noted in our review of the Grassroots Cannabis deal, and Curaleaf did not disappoint.
