PLUNGING STOCKS HAVE THE MARKET IN A FUNK…
He doesn’t like it any more than you do.
Virtually everyone expects massive industry growth in coming years. But layoffs at prominent companies, difficult business conditions and sagging stock prices all point to a rough patch for the industry.
- California multi-state operator (MSO) MedMen reported a net loss of $277M for fiscal 2019 up from $113.9M for fiscal 2018. This comes as revenue increased 227% to $130M.
Benzinga - After a 57.4% gain in Q1, New Cannabis Ventures’ Global Cannabis Stock Index suffered its seventh straight month of decline. It’s down from more than $105/share in March to about $47 today.
- Hexo, a Canadian producer, reported losses triple analysts expectations and announced lay-offs. ????WeedWeek Canada has more.
Bloomberg - After layoffs at competitor Weedmaps, Leafly has a hiring freeze.
CrunchBase
- With its stock in the tank, California mega-dispensary Harborside fired CEO Andrew Berman. Chairman Peter Bilodeau will serve as interim CEO. ��WeedWeek California has more.
CNN
- With most institutional investors staying away from the sector, some executives are blaming mom and pop investors. Jeff Mascio, CEO of Colorado-based Cannabis One Holdings, said, “The stock price is driven by Canadian retail investors, and that Canadian retail investor is a fickle, ignorant investor that doesn’t really understand what they’re investing in.” The stock trades for about $.17/share in Canada, down from more than $4.50 in April.
Bloomberg - Massachusetts-based MSO Curaleaf slashed the price for its acquisition of the Select brand from Oregon-based Cura from $947M in stock to $286M.
Oregonian - New Cannabis Ventures has seven key questions for earnings season.
