How Canadian cannabis firms lost millions on bad greenhouse https://mjbizdaily.com/how-canadian-cannabis-firms-lost-millions-on-bad-greenhouse-deals/ When Aurora Cannabis acquired greenhouse design firm Larssen in late 2017, it was a shot across the bow of rival Canadian marijuana producers.
In short, the Alberta-based producer was signaling to the industry it intended to win the “funded capacity” race at any cost – even if that meant buying the company designing your greenhouse.
Purchasing a company that specialized in designing greenhouses – at precisely the time more airport-sized greenhouses were the last thing the industry needed – was a distraction for the company’s management at a time when focus and execution were key, experts say.
Many of the greenhouse transactions in the industry at the time ultimately led to direct real estate losses worth millions of dollars and “balance sheet adjustments” worth billions of dollars, financial statements show.