RE:American Cannabis had a tough run but ending soon
DaveInCalgary wrote: Ventura some businesses occasionally may lose a CFO due to?, but 4?
From Aug 9,2023
"Dr. James V. Baker
@caster561
Like other MSOs, $CURLF is rapidly running out of cash! Its cash position is down $78M in 6 months to only $85M as of June 30. Its tax-adjusted free cash flow for the first 6 months of 2023 was NEGATIVE $57M considering the nonpayment of $46M in income taxes. $CURLF $MSOS $MJUS" Trulieve Posts Q2 Net Loss Of $407 Million Due To Asset Impairments
4 CFOs out within a very short time.
Luckily the CEOs spouse getting out of prison soon and can help turn things around.
Thanks Dave, what a disaster!
Not looking good for the MSO's and will get a lot worse before it gets better. Safe or schedule III will not help any of these MSO's. Little to late!
Cheers,
V
Some of the industry’s bigger operators are now tipping into financial distress. Trulieve Cannabis bonds due 2026 change hands for 68.5 cents on the dollar, while rival Curaleaf has 8% notes trading at 78.5 cents. It cost Ayr Wellness a steep 12.5% annually to borrow in 2020. That bond too has slumped.
Florida-based Trulieve is now winding down operations in California, Nevada and Massachusetts. The retrenchment comes after once-coveted licenses to operate in states that permit recreational marijuana became unlimited, boosting competition and cutting profits.
“Without the scale or size in those states, it doesn’t make sense to continue to build out in certain states,” said Scott Fortune, an equity analyst at Roth Capital Partners.
Curaleaf, headquartered in Wakefield, Massachusetts, is the largest retail dispensary in the US, and took on debt to fund acquisitions. Now, it’s looking to trim its operations and has exited multiple states.
And Miami-based Ayr Wellness faces one of the industry’s nearest-term debt tests. It has more than $200 million of bonds due at the end of 2024 that Fortune said it may struggle to address. Rising interest rates, high taxes and a lack of access to traditional banking systems gives companies like Ayr fewer options.
“The theme right now is everyone’s working with their debt holders to extend their original term without trying to refinance these at higher rates. We’ve seen that across the board,” Fortune said.