Two weeks ago, BC LP Pasha laid off a dozen of its 50 employees, mainly in communications and client services, calling six of them back on a commission basis, as it shifted focus to producing pre-rolls.
The Deep Dive, MarketWatch
- Pasha positioned itself as an umbrella organization to help BC craft producers enter a market dominated by corporate players.
- Subsequently, most of Pasha’s board of directors resigned—including important sector players like extraction entrepreneur Rosy Mondin and Auxly CEO Hugo Alves.
The Deep Dive
Cannabis lifestyle magazine/website Civilized was bought by American firm New Frontier Data, which laid off all staff “temporarily.”
CBC New Brunswick
- Based in Saint John, Civilized had received $200,000 in public funds from the province of New Brunswick.
GrowthOp - A former employee said the company was having trouble generating ad revenue due to Health Canada’s strict prohibitions on advertising cannabis.
CBC New Brunswick
Ernst Young cannabis manager Ashley Chiu warned—of the sector in general—that “30-40% of these companies won’t be around in a year. It will come down to execution and whether these companies have a differentiated strategy and a road to profitability.”
Twitter—Ashley Chiu
- Investments advisor Aaron Salz explained the valuation arms race that left companies with sky-high valuation, unable to raise capital.
Twitter—Aaron Salz
Quick Hits
- Now that cannabis is legal, the next hot investment for canna-executives is psychedelics, which show therapeutic promise despite illegality.
Globe and Mail
