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.
