Cannabis Corner: Investors benefit from its war chest

Article Excerpt

 Cannabis returns for investors have almost all dropped sharply since early 2019. Oversupply combined with major bottlenecks in getting products to consumers are the big reasons. This has pushed already optimistic projections for revenue, and perhaps even profits, further into the future. The long-term outlook for top growers is still positive. But in the near term, an emerging issue for producers, and their investors, is securing funds to keep money-losing operations going. Available debt financing will likely be on unfavourable terms and selling shares at today’s low prices would be dilutive to current investors. Our Cannabis Corner pick this month holds an edge in today’s tougher financing market. Cronos Group has a huge cash hoard and a well-heeled U.S. investor. That will let it keep expanding and pick up assets from distressed sellers. It also enhances the stock’s appeal for long-term investors. CRONOS GROUP $9.12 (Toronto symbol CRON; TSINetwork Rating: Speculative) (416-504-0004;; Shares o/s: 334.1 million; Market cap: $3.1 billion; TSI Cannabis Quality Rating…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.