Here’s the introduction to the piece. The WSJ has a narrative and we’re not disagreeing with their general train of thought even if some of the language is a bit over dramatic.
Here’s how they they introduce the piece
The party is over for cannabis companies.
Share prices of marijuana producers tumbled last week, some by nearly 40%, after a string of disappointing quarterly reports and mounting skepticism about the industry’s rosy growth forecasts.
Among the news this week: Two U.S. companies scrapped a merger initially valued at nearly $700 million. One Canadian producer said its prospects had become so uncertain that it was pulling its forecast for next year. Another warned it needed to find new sources of funding.
“The capital markets have dried up,” said Brian Athaide, chief executive of Green Organic Dutchman Holdings Ltd. , a marijuana grower. The Toronto-area company said Thursday that construction financing for two cultivation and processing facilities, one slated for more than 1.3 million square feet, was being delayed.
Meanwhile, the stock of Hexo Corp. , a producer in a joint venture with Molson Coors Brewing Co. , fell 38% last week. On Thursday, the Quebec company withdrew its revenue outlook of 400 million Canadian dollars (about US$300 million) for fiscal 2020, ending July 31, and said it expects fiscal 2019 revenue of between C$46.5 million to C$48.5 million.
Hexo Chief Executive Sébastien St-Louis cited lower sales and pot prices for the outlook, and said the company was making significant changes to its sales and operations strategy. The news came a week after Hexo’s finance chief had resigned. The stock closed Friday at C$3.35.