Investing In Cannabis During A Crisis: What To Know About Stocks, Debt, Equity, M&A
Public Cannabis Stocks
Cannabis stocks took a severe beating in 2019. In 2019 alone, stock prices we’re down over 35% on average and over 75% from their prior peak in 2018. However, 2020 is showing promise, despite the virus. While the year may have gotten off to a slow start for cannabis pubcos, a number of these stocks are experiencing multi-month highs. Recent earnings reports from companies like Green Thumb Industries, GrowGeneration, and Aurora Cannabis show very promising revenue and profitability trends. If you’re looking for opportunities in the pubco cannabis space, now’s the time to take a closer look.
Debt in Cannabusiness
Capital is king right now for many starving cannabis companies. The level of stress on companies in the space has effectively placed many into survival mode. This has been the case since mid-2019 and has only been exacerbated by the virus. For the most part, equity investors are still on the sidelines and cannabis companies are either willing, or have no choice, to raise capital through debt structures.
– Read the entire article at Benzinga.