Foreign assets could be next on the block for cash-hungry cannabis companies
International holdings becoming burden to companies needing to divest non-core assets
Friday, January 10, 2020
Two years ago, Canadian cannabis companies were racing to scoop up international assets, from swaths of fertile land in southern Africa to cultivation licences in Jamaica and everything in between. Now, with fears of a cash crunch looming over the industry, some of the same producers who spent tens of millions to build an international presence have started dialling back, putting projects on hold or divesting of their foreign operations altogether. And it’s a trend that some pot analysts expect will only intensify over the next 12 months. “Licensed producers are now in a capital constrained environment and investors want to see profitability.” (See: ‘Building a new industry from scratch is hard’: Cannabis firms brace for more spilled blood in 2020)
