RE:RE:Closes Sale/Leaseback for Mass. Facility Expands partnershipretiredcf wrote: It's unfortunate that CL is being swept along with the generally negative tide being applied to Canadian based MJ companies. That said, we'll likely need the Covid situation in the US to calm down before we'll get any solid traction. GLTA
Covid is a concern for CL, analysts say the burn rate indicates another year before CL could possibly run out of cash, hence one reason CL has to do the lease back. You also have to look at M&A missed due to lack of cash in an opportunistic market vs what competitors might have. Another possible reason that I personally think is that there is a hidden advantage in doing the lease back at peak value now as I believe the vertical model is flawed and freeing the capital tied up in infrastructure now that will eventually have to be sold by all MSO's to restructure to a model consistant with established commodities when MJ is made federally legal. The perception now that CL may be concerned about cash burn which may be a drag on the SP, but in fact that may be a silver lining 1yr down the road when CL has already sold facilities and there could be a flood of facilities for sale from other MSO's and no buyers for them! Interesting times to say the least!