A broad retreat in the pot industry was confirmed recently with the reporting of quarterly results by a number of publicly traded cannabis companies.
As reported in BNN Bloomberg, more than a dozen operators reported results, all disappointing. The main issues seem to be oversupply, a lack of retail stores, and prices that continue to keep customers away. Another cannabis business, DionyMed, was recently placed in court-ordered receivership by its main creditor here in British Columbia.
These reversals have wiped millions off the share value of these companies, and put creditors at risk. Although the potential for the industry remains huge, “high times” are not here yet, and navigating this environment requires skilled accounting and legal advice.