Here’s the introduction to the piece. The WSJ has a narrative and we’re not disagreeing with their common 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 businesses.
Share rates of marijuana producers tumbled final week, some by practically 40%, following a string of disappointing quarterly reports and mounting skepticism about the industry’s rosy development forecasts.
Amongst the news this week: Two U.S. businesses 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. An additional warned it necessary to obtain 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-region organization mentioned Thursday that building financing for two cultivation and processing facilities, one particular slated for extra than 1.three million square feet, was getting 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 organization 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 involving C$46.five million to C$48.five million.
Hexo Chief Executive Sébastien St-Louis cited reduced sales and pot rates for the outlook, and mentioned the organization was generating important modifications to its sales and operations method. The news came a week following Hexo’s finance chief had resigned. The stock closed Friday at C$three.35.