"All dried up" article[url=All dried up: How Bay Street cashed in on the cannabis frenzy before the carnage]https://archive.is/4CIsl#selection-4815.0-4857.80[/url]
But to win investors back, cannabis companies will need a new mindset: less cowboy mentality, more professionalism. Too many boards and executive offices were stacked with friends of the founders. “Finding great talent is the next important phase for this sector,” said Les Gombik, an executive recruiter. Yet hiring that talent isn’t so easy any more.
“A lot of people entered the industry because it was exciting, and there was huge upside potential,” Mr. Gombik said. Now, executives are confidentially calling his firm and asking for ways out. “It’s not as much fun any more,” he said.
The radical new reality may surprise retail investors who got burned. But the truth is, Canada has seen this all before. We are a country rife with commodity cycles.
If previous busts are any indication, there will be blood for many small cannabis producers. The TSX-V housed a lot of the junior mining companies that soared after the Great Recession and the index peaked in Feburary, 2011, but has since lost 78 per cent of its value. Once the growth financing disappeared, companies weren’t valued on their potential; they were assessed on what they actually produced.
It is still too early to definitively say that cannabis is in the same spiral. This market has been volatile and there may be another upswing.
All producers aren’t identical, either. A handful of companies with strong balance sheets and economies of scale "are ultimately going to be very successful,” Mr. Gimelshtein said.
“But before that happens, a bunch of these companies are going to hit the wall.”
I currently believe 48North is one of the handful of companies with a strong balance sheet that will be very successful. I just wish they would actually give us some data that would allow current and potential "investors" to be able to make a slightly educated decision as to whether they are of good value or not though (ie. estimated yields in extracts, estimated yields in flower, estimated burn rate, estimated sales, etc.).
Just watch shows like Shark Tank or Dragon's Den. The investors always ask these questions, and if they don't get the answers, they don't invest.
I'm not suggesting they should give us this type of information on a daily basis, but I believe it would be in their best interest that they give it once a month. IMO, in 48Norths case, it would attract a lot of investors that care about a good balance sheet and have great future potential.