Here’s the introduction to the piece. The WSJ has a narrative and we’re not disagreeing with their basic train of believed even if some of the language is a bit more than dramatic.
Here’s how they they introduce the piece
The celebration is more than for cannabis providers.
Share costs of marijuana producers tumbled final week, some by practically 40%, just after a string of disappointing quarterly reports and mounting skepticism about the industry’s rosy development forecasts.
Amongst the news this week: Two U.S. providers scrapped a merger initially valued at practically $700 million. A single Canadian producer mentioned its prospects had turn out to be so uncertain that it was pulling its forecast for subsequent year. One more warned it required to discover new sources of funding.
“The capital markets have dried up,” mentioned Brian Athaide, chief executive of Green Organic Dutchman Holdings Ltd. , a marijuana grower. The Toronto-location corporation mentioned Thursday that building financing for two cultivation and processing facilities, 1 slated for a lot more than 1.three million square feet, was becoming delayed.
Meanwhile, the stock of Hexo Corp. , a producer in a joint venture with Molson Coors Brewing Co. , fell 38% final week. On Thursday, the Quebec corporation withdrew its income outlook of 400 million Canadian dollars (about US$300 million) for fiscal 2020, ending July 31, and mentioned it expects fiscal 2019 income of amongst C$46.five million to C$48.five million.
Hexo Chief Executive Sébastien St-Louis cited reduced sales and pot costs for the outlook, and mentioned the corporation was creating important alterations to its sales and operations technique. The news came a week just after Hexo’s finance chief had resigned. The stock closed Friday at C$three.35.
Study a lot more at https://www.wsj.com/articles/marijuana-madness-turns-into-a-cannabis-crash-11570888800