What do we know..NextLeaf
Pre RTO 14 mil shares at $0.11c CDN
RTO price was 82 millin shares at $0.35c
subsequent 10 mil shares at $.70c
14 million options at $0.35c
$5 mil cash on hand and they state will not need financing to get to cash low
Shares outstanding 108 mil
NextLeaf is fundamently sound and is outperforming the sector ( see T.HMMJ)
Technically it appears there is support at $0.20c CDN and Resistance at $0.35c CDN
What we don't know is where is the bottom to this sector. You could either hold and wait for OILS to get up and running or sell and buy it back when the indicators turn around for the sector.
Could there be companies go under in the LP ( WEED Producers) Sure. Comments on websites continually quote that there is no financing available for WEED producers , many are under water or cash poor. The market is said to have 1.5 times the production vs demand.
The CBD market will not be initially big enough to help those cash strapped now.
Will the CBD companies be dragged down with the Producers. Probably , however it will be measured in my expectation.
There are also some commentary that the market will change the narrative once the thinning process is done and the remaining companies are significantly oversold.
Fund managers will see a mature market, with only the strong survivng , retail prices dropping by 30-40% ( compare what has happened in California and Colorado) and consequently a much higher demand for legal product moving away from the crimminal markets.
These are just postings I have read over the last week on many sites and my best understanding and recolection of the content.
You should dive in yourselves and see what is being discussed. I'm not at liberty to post from these sites as rules have changed here and the sites themselves have rules.
Not hard to find .
JMHO