LAYOFFS, DISMAL EARNINGS AS SLUMP DEEPENS
PHOTO BY ANDRE TAN ON UNSPLASH
MedMen and (WeedWeek advertiser) Flow Kana became the two latest prominent California brands to lay off staff.
- Flow Kana, said it would lay off up to a fifth of its workforce as CEO Mikey Steinmetz blamed California government for failing the industry. The company sells craft flower produced by a network of Emerald Triangle farmers. ????WW California has more.
SacBee - MedMen said it was laying off more than 190 workers including 20% of corporate employees as part of some significant belt-tightening which also includes divesting non-core assets and scaling back spending on mergers, marketing, technology and other aspects of the business. The company’s stock fell below $1/share for the first time.
Press Release - Falling stock prices have forced Cresco Labs and Origin House to cut the terms of their merger in half to about $400M.
MJBIz
Canada’s major players reported earnings this week and Canopy Growth revealed a big loss on the quarter. It’s stock fell as much as 17%. ????WW Canada has more.
CNBC
- ????Also in WW Canada, Canopy’s new partner Drake is picking a fight with regulators.
- In Business Insider, 11 in the know folks discuss the industry “meltdown” and what’s next.
- Bloomberg‘s Kristine Owram explains why, “Capital markets have gone from frothy to completely closed.”
- Canadian regulators are planning to impose stricter securities guidelines for pot stocks after finding “a series of inadequacies” in disclosures.
Financial Post
At Forbes, commentator Mike Adams goes so far as to discuss reasons why legalization seems to be failing. “It’s hard to argue that marijuana legalization is working,” he writes. “It should be, but the scene is just too convoluted.”
But at New Cannabis Ventures, analyst Alan Brochstein sees some reasons for optimism.
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Quick Hit
- Colorado-based dispensary chain Terrapin Care Station announced a $15/hour minimum wage for all employees.
