The Pain Continues - Market Update - Oct/12/2019
We are at a critical juncture in Cannabis:
- There is a structural shift to evaluating companies on fundamentals and cash burn
- Bad News: Medmen and Pharmacann cancel proposed merger
- Who got a better deal? And Medmen's CFO getting fired
- How this might impact Origin House / Cresco Labs
- More Bad News: HEXO misses revenue and CFO gets fired (note the pattern)
- HEXO drops hard in price - is it valued fairly?
- Even More Bad News: Village Farms raises $25M at half the value from a few months ago
- How we should have seen this coming
- What this says about the market and about VFF (good and bad)
- Good News! Mitch McConnell (senate leader) visits California and meets with Cannabis companies
- This bodes well for the SAFE Banking Act vote (but still uncertain)
- Good News: MediPharm Labs gets an increased bank facility at reasonable rates