Cannabis bankruptcies start to roll in as pandemic halts financing

Article Link: https://www.thegrowthop.com/cannabis/cannabis-business/bankruptcies-begin-as-pandemic-halts-financing-cannabis-weekly/wcm/54ba8962-2ccf-490c-8a21-d6ef72b7c3af

Discussion posted by: JayMak

The cannabis bankruptcy filings are starting to roll in. Already plagued by a tough regulatory environment, disappointing sales and capital markets that had closed to all but the strongest companies, the industry is now facing a pandemic-related collapse in stock markets and ever-shrinking financing options. Pot companies completed two capital raises worth just US$5.6 million the week ended March 27, according to data from Viridian Capital Advisors. That’s the lowest level of activity this year and compares to 17 capital raises worth $169 million for the same period in 2019.