Canopy Growth Corp (WEED)

[Bonno]

"If outdoor and micro licences were offered initially, Canada would not have seen billions (of dollars) wasted on large-scale cannabis facilities, whose cost of production is too high for the quality of product being produced."

—Av Singh, co-founder,Flemming & Singh Cannabis
27/4/2022


Matt Lamers ????
@matt_lamers
·to bonno

After Hexo's stock tanked, the company told investors there was “a significant positive total cumulative return”, which they then used to justify huge pay increases for execs.

About 847 people have been put out of work at $HEXO since 2020
mjbizdaily.com
Marijuana producer Hexo touts 'significant' shareholder return despite tumbling stock price
Cannabis producer Hexo Corp. is trumpeting “a significant positive total cumulative return” for its shareholders despite falling stock prices.
Matt Lamers ????
@matt_lamers
·
3h
Back in 2018, the "capacity" scam emerged as key driver of cannabis stonk valuations

PWC poured fuel on the raging fire of bullshit.

Cannabis business multiples "focused on production capacity ... may be more useful for analysis & comparative purposes"
pwc.com
A candid review of cannabis multiples
With the legalization of cannabis in Canada on October 17, 2018, we decided to take stock of the valuation multiples of publicly traded companies operating in this space.
Matt Lamers ????
@matt_lamers
·
3h
They even called it "A candid review" LOL

Candid would have been: "It's too early to know which of these companies will be successful. Do not make decisions based mainly on the production capacity of any company in any industry, including cannabis, because that would be crazy"
Matt Lamers ????
@matt_lamers
·
3h
Having the capacity to make a product doesn't give you the competence to do it well.

Firms like PWC and Deloitte only added to cannabis #stonk hysteria, contributing to misallocated capital. The industry, investors, workers etc are still paying the price.
Matt Lamers ????
@matt_lamers
·
3h
I can't repeat this enough: Even if Canada converted 100% of the underground market to regulated sales on day 1 of legalization—which obviously was impossible and not expected—there was never enough demand to justify financing and building these cultivation/production facilities