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Stock impact report

1 Major Problem for the Cannabis Industry [The Motley Fool]

Tilray Brands, Inc. - Class 2 (TLRY) 
Last tilray brands, inc. - class 2 earnings: 3/2 04:05 pm Check Earnings Report
Company Research Source: The Motley Fool
Another earnings season is just weeks away, where much of the focus will be on sales and profits and how they may change amid the coronavirus pandemic. However, for cannabis companies, there's something much more important -- liquidity. A big problem for many cannabis companies today is that they don't have access to a lot of it, and they aren't generating positive cash flow, either. A lack of liquidity makes for a potentially dire situation for the industry, and here's why.Raising cash is more challenging now than ever beforeiously, if a cannabis company needed to raise cash to grow its business, it would just issue more shares. But that's no longer an attractive solution given that many pot stocks have lost more than of their value in the past months. TheHorizons Marijuana Life Sciences Index ETF(OTC: HMLSF)If share prices are down, that means a company needs to issue more shares to raise the same level of cash than it would have had to if it issued the shares earlier. And a flood Show less Read more
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