For the last few years, if cannabis companies wanted money, there was a long line of folks happy to oblige. More recently, those financiers have dried up, causing raise-addicted cannabis pubco execs to reach for their ‘balance sheets for dummies’ text books and have urgent meetings with accountants regarding how they stay alive.
Sometimes a deal broken is a good deal for shareholders, especially if you give a red rat’s behind about your favourite company having enough money to survive the year. Lately, we’re seeing a lot of deals that, at one time, were announced with much fanfare, being quietly dropkicked off the bridge as once high flying companies realize they need to make more than they spend.
GTEC Holdings (GTEC.V) completed its transaction with Fire and Flower Holdings (FAF.T), selling them some of their Cannabis Cowboy (CCI) dispensaries in exchange for cash, so they can pay their debts.
Crop Infrastructure (CROP.C) has been “humbled” by major damage to its Nevada property caused by rampaging antelopes and weeds, the unprofitable kind.
GTEC Holdings (GTEC.V) signed an agreement to sell eight of their non-operational store locations to Fire and Flower Holdings (FAF.T) to finance their debenture debt today.