Maryland is opening the gates
This Saturday, legal adult-use cannabis sales will begin in Maryland. Nearly 100 dispensaries have been approved by state regulators to covert to dual licensees that will be able to serve patients and adult consumers. “In order to operate on or after July 1, 2023, an existing medical cannabis licensee or preapproved entity must pay the conversion fee and convert their license to a standard medical and adult-use license,” MCA said. “Standard cannabis licenses will be valid for five years and will authorize a licensee to grow, process, or dispense both adult-use and medical cannabis. Licenses who choose not to convert may continue to hold their license for resale, but may not operate under the license beginning July 1, 2023.”
canopy is doomed
So far this year, Canopy (CGC) is down 78% because investors are finally figuring out that the company has a cash burn issue. Its market capitalization has slumped from C$25B in 2021 to less than C$400M, leading to its expulsion from the S&P/TSX Composite Index earlier this month. Now CGC has lost KPMG as the company has resigned as the Canadian cannabis licensed producer's independent registered public accounting firm. A Canopy Growth (CGC) SEC filing said that a June 22 KPMG report on the company found it "did not maintain effective internal control over financial reporting as of March 31, 2023." KPMG added that "an ineffective control environment, resulting from a lack of the required number of trained operational and IT personnel with the appropriate skills and knowledge and with appropriate assigned authorities, responsibilities and accountability related to the design, implementation and operating effectiveness of internal control over financial reporting." There are real question marks on whether or not the company can turn its balance sheet around and survive as a public company. This is a massive reason we are long Cronos (CRON) which has the strongest balance sheet in the cannabis industry.
We remain negative on Canopy.
CONSUMABLES MONTHLY Q&A CALL
CALL DETAILS:
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WE WILL EXPLORE THE FOLLOWING TOPICS:
- Cannabis trends.
- Discuss the pushback and feedback from our recent Black Book calls.
- Share feedback on our outlook for 2023.
- Trends we are seeing in 2Q23.
- Discuss earnings.
- Discuss the most common and noteworthy inbounds we have received in the past month.
- Revisit changes to our Position Monitors.
- Provide updates on some of our best ideas.
- Discuss recent trend changes in consumer spending & inflation.
WE WILL ALSO TAKE LIVE QUESTIONS.
Send us your questions ahead of time to .
