High Production Cost + $3B Goodwill=Danger ACB's production cost is simply too high and their goodwill is absurd. I feel much safer in low cost producers with supply agreements such as ZENA and HEXO. ZENA is doing the rights offering which has crushed the stock, but it is a well run producer with scale and extremely low cost production. The rights offering is the first step in reducing its debt, and there is a good chance it can renegotiate its senior low cost debt on a quarter or two.
Below is a Seeking Alpha article.
https://seekingalpha.com/instablog/1096367-kelly-jc-brown/5368932-zenabis-global-ltd-rights-offering-mechanics-cash-flow-model-balance-sheet-discussion What happens if ACB has material impairment charges on its goodwill? I don't know if their huge valuation can be supported.