Cannabis businesses scale back plans as access to capital tightens

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(This story is portion of MJBizDaily’s premium subscription service, Investor Intelligence.)

This week, The Green Organic Dutchman (TSX: TGOD) announced it is getting difficulty funding its expansion plans (and, as a result, its income and EBITDA estimates) by means of industrial banks and gear leasing, and the Canadian enterprise stated it “may revise the building schedule” if it is “unable to get adequate financing on affordable terms, inside the expected time frame.”

This followed the termination of MedMen Enterprise’s (CSE: MMEN) acquisition of PharmaCann, which was also blamed on the Los Angeles-primarily based company’s inability to get funding for expansion plans.

And just a week ago, New York-primarily based iAnthus Capital Holdings (CSE: IAN) announced it has raised $20 million with a commitment for one more $80 million to totally fund its development plans.

But if you study among the lines, the extra $80 million is far from assured.

What do these have in typical? Organization plans that assumed extra capital raises.

Study a lot more about how to this showdown could play out at Investor Intelligence.

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