2019 has been an particularly disappointing year for investors in cannabis stocks, with the general industry, as measured by the New Cannabis Ventures International Cannabis Stock Index down 20% following a 55% decline in 2018. The industry, which has declined more than 71% considering the fact that early 2018, has moved to 3-year lows:
The present atmosphere is difficult, as funding has dried up, a scenario I discussed a month ago. Quite a few businesses will not make it or will have to raise capital on particularly unfavorable terms that will substantially dilute shareholders, as they are not adequately capitalized. Investors are speedily figuring this out, and the broad promoting has surely hurt the businesses with higher money-burns and weak balance sheets the most.
– Study the whole short article at Forbes.