Eve & Co Inc V.EVE.H

EVE will not be able to get additional financing

[Crazyfrog03]

“Providing lines of credit to these businesses is a very risky behavior,” said Morgan Paxhia, managing partner with cannabis investment firm Poseidon Asset Management. “A lot of these businesses are going to fail, and cannabis in its aggregate is still in the startup mode, so you will see many, many failures, in which case your recoveries would be minimal.”

In both the U.S. and Canada, collateral value often depends on whether hard assets such as property, a plant, or equipment can be repurposed for other uses outside of cannabis, the sources noted. The more cannabis-specific the assets are, the less likelihood of a full recovery for lenders.

RBC will revover some of their money however shareholders will get zero. 
 

https://www.forbes.com/sites/debtwire/2020/02/28/cannabis-companies-look-to-debt-financing-but-lenders-question-collateral-value/