Next in line comes Canopy and see what the market thinks of a company that can not pay off its debt via profits !
Aurora Cannabis Is Selling Stocks To Pay Off Debt And These Canadian Marijuana Giants Are Next In Line
The dwindling cash and limited prospects for achieving substantial cash generation would leave the company in a very vulnerable position ahead of the 2026 maturity of its CA$900 million credit facility,” he said, adding that it “requires a minimum liquidity of $250 million.”
With analysts suggesting that Canopy won’t be able to achieve positive adjusted EBITDA in the following three years, the refinancing of the debt could be questionable.
“While its stock is trading near a 5-year low, we think it makes sense for the company to sell stock, as it currently trades at 2X tangible book value despite projected losses ahead and looming debt maturities,” Brochstein said.