Cannabis investing slump: stocks fall, layoffs, fewer deals - Business Insider

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Layoffs, cratering stocks, and blown-up deals: 11 experts take us inside the cannabis industry's meltdown and tell us where the industry goes from here

missed revenue estimates and saw its sales fall 15% quarter over quarter. The stock fell 14.4%.

Cash-starved cannabis companies have historically relied on their stocks as currency to make deals, because THC, the chief psychoactive component of marijuana, is federally illegal in the US and "But growth capital — that traditional later stage, B, C, D series capital — where the check sizes are anywhere from 25 to 150 million bucks? Good luck in cannabis," Sedlin said. "That doesn't exist."The story of the industry's rise and stumble, cannabis industry executives and experts say, goes something like this.

"What's going on in cannabis isn't unique to cannabis," said Jennifer Drake, a former Goldman Sachs managing director who is the chief operating officer of Ayr Strategies. "It's what happens when you have exuberance and free-flowing capital from retail investors."

 

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