With many cannabis LPs completing their 2019 financial year as of 31 December, the last day of March is the final day to report the 2019 Year and Q4 Financials.

And what we got was a whole bunch of negative news from several of the big players, $CRON, $HEXO, $SNDL, $ZENA… Massive impairments, covenant breaches, debt waivers, the race to sell assets just recently purchased. 

Sundial CEO quote summed it up nicely: 

“Despite our successes in 2019, we also faced a number of internal and external challenges, including operational difficulties, excess leverage, poor cost controls, a loss of focus on our core value proposition, regulatory delays, and rapidly evolving industry conditions.” Yikes.

There is basically zero goodwill in the industry, literally (financial reporting) or metaphorically. There was a lot of poo emojis thrown around cannabis finance twitter this week.

There was some positive news among the rubble; Q-on-Q revenue increases, massive Y-on-Y improvements vs. 2018, of course. No-one cares. The analysts are downgrading everything, probably slower than the market is pricing the industry. After all, if EVERYTHING is sell, you don’t need any cannabis analysts.

At this point, the only plan is to avoid bankruptcy, asset stripping, closure…while those around you fall to that fate. There will be survivors. Cannabis is an essential service! We (the people) want cannabis companies to get through this. I have my fingers crossed.

This Much We Know.