From cash to ash: Pot companies have just months to live on average, study finds

The largest Canadian marijuana companies have less than a year’s worth of cash left on average, and their U.S. counterparts aren’t faring much better, according to a new study.

Two of the largest Canadian names are on pace to run out of money within the next 12 months, according to Ello. Aurora Cannabis Inc. ACB, -1.28% ACB, -1.44% has just more than two months of cash remaining in its war chest, according to the analysis, and Canopy Growth Corp. CGC, +4.51% WEED, +4.26% slightly less than eight months of cash, with about $833 million remaining, the report said. Previously, Constellation Brands Inc. STZ, -0.06% invested $4 billion in the Canadian weed producer.

“The entire sector is experiencing a considerable cash crunch,” a Green Growth spokeswoman wrote in an email. “Like many of our peers, we are closely monitoring capital and are working with key investors to secure additional funding.” Raising new capital has become more difficult. According to data from Viridian Capital Advisors, which tracks cannabis capital raises, the slowdown began in March 2019 and financing cratered by the last two months of 2019. Overall, capital raises for public and closely held weed companies fell 20.3% in 2019 from 2018, for a total of $11.3 billion.

Canadian pot companies gettin' high on their own supply. Rookie mistake.

Pot companies should supply they’re individual countries it’s cheaper that way. This is why they are running out of money 💵

We get High the most 💨🇺🇸

Yeah but this doesn’t account for the additional cash they’ll generate every coming month. This is a bunk headline. Marketwatch ha s really gone downhill.

All of a sudden smoking no longer creates lung cancer?

Oh Canada

The cannabis market is here to stay. Sorry .

Pot companies are in cash-burn mode?

How many people got burned chasing the green stocks? I think there’s good business there, but the spike went too quick and the revenue stream just isn’t quite there yet to support it.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

'I really love the vibes': How Yelp boosts black market pot shopsAn untold number of unlicensed dispensaries operate in plain sight across Los Angeles and appear on Yelp. The online review site said it won't remove the illegal businesses, but is planning to make a policy shift spurred by an NBCNews investigation.
Source: NBCNews - 🏆 10. / 86 Read more »

This hacker digs up new features on Instagram, Facebook, and Spotify - Business Insider.wongmjane reverse-engineers apps to find new features long before companies announce them — like Instagram's experiment with hiding likes, which she discovered weeks before it was unveiled. wongmjane Oh wow you famous now. So glad I started following you from way before :)
Source: BusinessInsider - 🏆 729. / 51 Read more »