The coronavirus has the potential to try to to tons more damage to the cannabis industry than simply a slowdown in Chinese vape cartridges and plastic packaging coming over from Asian countries, it could put a hammer down on the already struggling finance and debt market that the present cannabis industry is battling immediately .
Huh? i assumed cannabis is sweet to assist viruses, including the coronavirus?
As we mentioned fortnight ago on within the Weeds with Jimmy Young, our biggest concern within the cannabis industry is that the lack of funding within the cannabis industry immediately . it’s dire. Companies that touch the flower are shedding many people, companies that are within the media or ancillary space are shedding many folks that had taken the career chance of leaving a non-cannabis job to enter the cannabis space. Programmers, HR people, CPAs, real jobs, real people, real layoffs.
The priority was that if the cannabis market’s access to funds is tight immediately and you can’t find loans and cash anywhere within the market, what happens if the overall market overall takes an enormous dip, or we enter a full fledged recession? A flood tide raises all ships as they assert on Wall Street, but a lowering tide exposes who has swim trunks on also .
Enter the coronavirus scare, while it appears to be a significant viral flu strain, it doesn’t appear to be a zombie apocalypse or bubonic plague-type situation. One thing has created is fear and nervousness within the market. The stock exchange has dropped over 2,200 points on fears regarding the coronavirus.
This is often important to the cannabis market because things were already tight within the public markets for cannabis company getting funds so as to survive subsequent 12 months, now contribute a down market and a nervous investor profile, and that we could have some real problems ahead for cannabis.
Does MedMen survive if we’ve another 2,000-point downturn within the Dow Jones and their stock hits $0.15?
Do you think High Times, who recently got approval from FINRA for an over the counter stock symbol and listing, wants to travel public during this market? Can they afford to carry off and await a far better market environment or do they only need to go and obtain those public funds into the corporate regardless of what the market is doing?
Weedmaps and Leafly have recently laid off 20% of their workforce and EAZE was headed for a brutal end before recently getting a $35mil lifeline funding round and future credit source from previous investors that have already invested within the company.
Massroots, having burned through $20mil and having their stock back around $0.003, has their website down again. After having it down for 9 weeks over the autumn , will it come up this time?
Civilized had to pay someone to require their company and debt, has stopped publishing content and is seeing their ranking and traffic plummet.
All these events happened during the roaring market of the past 12 months that saw the Dow Jones rise to almost 30,000. Interests rates are at all-time lows for mortgages, home equity loans, and car loans, so money has never been easier to urge , and therefore the cannabis market was already floundering for cash and credit lines during this era .
We stand by our line to Bruce Linton in our interview on within the Weeds, the downfall of the general public cannabis industry, or the bubble began to pop, when he was fired from Canopy Growth. the primary question we asked Bruce as whether he caused the cannabis stock exchange crash by being fired from Canopy Growth. We all should have seen the writing on the wall at that moment. That was the canary within the coalmine for the cannabis public stock markets.