‘There’s just no money coming in’: Cannabis sector bracing for wave of insolvencies in 2020

Article Link: https://business.financialpost.com/cannabis/cannabis-business/cannabis-investing/theres-just-no-money-coming-in-cannabis-sector-bracing-for-wave-of-insolvencies-in-2020?video_autoplay=true

Discussion posted by: David McNamara

Cannabis industry insiders are bracing for a slew of bankruptcies in the coming year as small and medium-sized companies low on cash struggle to raise funds in the downtrodden sector. “We have had a busy few years, but next year we’re going to be busy for a different reason — we expect a few million dollars in legal fees from insolvencies and consolidation,” said Ranjeev Dhillon, a partner at McCarthy Tetrault LLP and the firm’s cannabis group lead. Dhillon says that his team is already seeing companies that are heading down that path.