The MJ Business Model is Shattered & Non ViableExcept those high on Hopium, the business model for most MJ companies is just not viable. For every gram of pot sold they lose money and eventually need more financing to keep the executives employed. Nothing is changing on the sell price.
Often companies management look to scaling UP to find profitability. That's fine if you are profitable with your business but when 1 unprofitable comapany takes over another unprofitable company you just get a bigger unprofitable company with a much larger float that needs consolidation to raise more funds as in para 1.
The latest circular that has gone out recently is Stem Holdings (stem) planning up to 1/100 R/S. It was kept quiet no news release. I was holding 1/4 millions shares just waiting to unload and yesterday the stock's Santa Claus rally spiked locking in a nice 150% profit.
If you are good at analysing these deals and have seen what happens with others in this scenario there is no win for common shareholders and you'll see that eventually here.
The only companies that are or very near profitable are the small boutique companies. Now if a small profitable boutique company meargers with another of the same, great.
The MJ business: It's great for customers with cheap and accessible pot. The Executives make very good salaries and stock options, the governments get more tax revenue, the savy MJ traders can do very well, the MJ investors unfortunately have been and will be wiped out.
Profitable small floats....yeahhhhh. Unprofitable large floats....neahhhhh. Mearging unprofitable large floats....uhrggggg.