ONGOING CORPORATE CARNAGE
Several stories this week indicate the pain of last year’s pot stock crash is not yet over.
- Terry Booth, co-founder and CEO of Aurora, one of Canada’s largest producers, stepped down as the company cut about 15% of its staff. Grizzle asks if the company can turn it around. WW Canada has more.
Barron’s - Big Canadian MED player Tilray cut its staff by 10%.
Reuters - MarketWatch asks how Canadian producer Sundial lost 87% of its market value in six months.
- Canadian pot stocks had their 10th consecutive down month.
New Cannabis Ventures - Caliva, a big California brand, will not renew its partnership with delivery company Eaze. Relatedly, Caliva will be laying off more than 200 people though they will be able to apply for new jobs. Caliva says it is raising a Series B round which will be larger than its $75M Series A in 2019.
Business Insider - The business climate overwhelmed Whoopi Goldberg’s cannabis company Whoopi & Maya which is shutting down.
CNN
Bucking the trend among publicly traded companies, MSO Acreage Holdings secured a $100M credit facility that will not dilute terms of its planned acquisition by Canadian player Canopy Growth for $3.4 Billion. “Where many have struggled to find any form of capital, Acreage is secure,” an MKM Partners analyst said.
MarketWatch
- In separate Acreage news, the company conceded its contracts with local license applicants in Massachusetts were “inoperable.” The Boston Globe previously reported how the agreements appeared to give the MSO control of more than the state maximum of three REC stores.
Boston Globe
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