When a cannabis company loses a lot of money every quarter, and has to sell real estate, cancel acquisitions, lay off staff, renegotiate existing financing to higher interest rates and offer stock to new financiers at a discount to the market price, all to stay afloat, one might expect their newsflow to show bold new moves, innovation, maybe some hard austerity decisions.
The Father Daughter Dance at West Vancouver country club Hollyburn is usually a fairly tame affair, where the city’s well-to-do dress up, eat steak, and dance with their little girls in a tony family friendly setting where everyone is home by bed time.
“Fiscal 2019 was a transformative year for Medmen, with over two million completed retail transactions to date and revenues increasing 227% year-over-year,” said Adam Bierman, Medmen co-founder and chief executive officer in a news release that should see the company gutted on the markets Tuesday.
Fairmont Hotel gadfly and resource exploring ‘man about town’ Jared Lazerson, otherwise known as the CEO of MGX Minerals (MXG.C), put out a hasty news release this afternoon suggesting news of his termination had been greatly exaggerated.
Turns out running an illegal drug operation out of your legal, licensed drug operation isn’t such a good business model. Health Canada announced today what many had long assumed was coming, when they suspended CannTrust’s (TRST.T) license to sell and process cannabis in the wake of ongoing allegations of illegal behaviour.
There’s an old damage control routine that goes, instead of admitting you have a problem, you focus on how you’ve fixed the problem you had, so the interested observer focuses on your fix and not your initial incompetence.
Over the last few days, as cannabis took another face plant into the toilet bowl, a ton of money has been looking for somewhere else to go.
Abattis Bioceuticals (ATT.C): A grift building over several years until regulators couldn’t ignore it anymore
Several years ago, when Equity.Guru boss Chris Parry was writing at Stockhouse, he was called out to a new client – a company called Abattis Bioceutical (ATT.C).
Canadian licensed cannabis producer The Wayland Group (WAYL.C), formerly Maricann, currently halted for not being able to get their financials through three different audit teams, has succumbed.
We may never know whether it was the brazen hubris of doing a promotional video in front of an unlicensed grow room filled with illegal plants, or if it was the email trail the Globe and Mail discovered yesterday that showed top brass at CannTrust (TRST.V) were not only aware the company was growing illegal weed, but actively working around Health Canada inspectors while doing so, and looking to gaslight regulators in the eventuality they got caught.