So sayeth the Canadian Financial Post….
“They could be right they could be wrong” to paraphrase Public Image Ltd .
That song was called Rise… so let’s hope for a trajectory in that direction
The FP reports….
Several cannabis companies are set to run out of cash in the next few months as capital markets grind to a standstill.
An analysis of 33 firms tracked by trade publication Marijuana Business Daily found that eight don’t have enough funding to last more than 10 months. It looked at the companies’ operating cash flow, cash on hand, unused credit facilities and new debt or equity and subtracted capital expenditures and debt due in 2020 to reach the conclusions, which were detailed in a presentation last week.
“It’s going to be an extinction-level event for some companies,” said Craig Behnke, equity analyst at the trade publication commonly known as MJBiz Daily. “But it’s a healthy and necessary process for any industry to go through once it’s had a phase of absolute excess and exuberance.”