A Miracle or Bankruptcy?As most seasoned investors on these Cannibis forums know by now, i've been calling for this dreadful doomsday scenario ever since the collapse started in this sector in 2019. Actually called it so accurately that's it's scary to say the least. Unfortunately for WEED s/h, It seems that faithful day may have finally come for Canopy. The only question remaining is how long do they left?
After spending quite a bit of my prescious time on the Hexo forum recently, trying my best to convince as many folks as possible to call it quits BEFORE they lose whatever remains of their investment there, i was asked by another fellow investor to give my take on WEED....again. After a brief exchange of PM's with this fellow, giving him my honest assesement, i was asked if i could possibly post something here, like i did with Hexo. I falied to WHY i needed to do this, as i did give him my brutally honest evaluation of Canop's delicate situation already. So he had all he needed to know and from my point of view, there was no need to say anything more. Then he have me his explanation & justification as to why, and i understood where he was coming from. He wasn't asking for himself personally, but for the benefit of others.....possbily friends or fellow investors.
Now, there's absolutely NO WAY that will post a indepth assessment or waste all that time like i did with the Hexo folks. You can forget about that my dear friends. But what i will do, is give you a brief synopsis of what i told this poor fellow. And the following is what i said.....
Canopy needs a God given super mircale to survive the year. Absolutely no two ways about it or around it. Unfortunately, this mircale will ONLY come in two forms, either in the form of a cash infusion, by whatever means they can get OR by passing laws. And by laws, i mean by the US Federal Gov't immediately regulating & legalizing Cannibis use country wide. Personally, i seriously doubt US Federal legaliztion gets done in time to save Canopy from serious financial difficulties. So what your left with, is only one remaining option, finding & getting a cash infusion by ANY means possible. Why is a cash infusion so important right now? Because Weed will run out of money to sustain operations in a few months, if the aren't precariously close already by now. As is the case with Hexo and many others. Fortunately for Hexo, it has a few options left and more time, not so much for WEED. They are desperate....
As the majority of their debt is crushing for the company, paying almost 8% in interest, there's no way out. They can attempt to borrow more to payoff the high interest stuff or maybe renegotiate with lenders to stave of BK, but who will lend them more credit in this evironment with such a horrible balance sheet? Probably no one EXCEPT their current lenders to prevent insolvency & the hardships of costly court proceedings. So in the end, IF Canopy mgmt cannot renegotiate their debts or find additional financing, they better get on their knees & pray the US Gov't passes legalization this year.....soon.
I hope this helps in some way, the people my friend had requested this for.
GLTA