The soaring investor excitement for the cannabis industry that was seen late last year into this year has been replaced by a sense of discouragement, an industry players said.

Analyst and industry experts have spoken at length about the trying summer the cannabis industry has faced recently.

One cannabis executive’s firm has suffered along with the rest of the industry, but he said it could be nearing the bottom of its most recent downturn.

Hadley Ford, CEO of iAnthus Capital Holdings (CSE:IAN,OTCQX:ITHUF), called the current struggle the sector is dealing with “a freefall of exuberance,” comparing it to the dot-com bubble burst in the mid ’90s.

During a presentation at a Canaccord Genuity investing event in October, Ford told investors the US-based multi-state operator (MSO) had been hit hard by the bear market, falling 65 percent in value year-to-date.

However, the executive told the Investing News Network (INN) there is a certain level of dissonance between market reaction and the value of individual companies.

“The actual values that exist in the market today bear no resemblance to what the value of the actual companies are,” he said.

Ford expressed confidence in the assets managed by his firm. The executive told INN, “You can go through market by market by market with us (to see) what our licenses are worth, and the actual tangible assets value of what we own is greater than the value of our company. That makes no sense whatsoever.”

This past summer was marked by a general drop in the hype-like sentiment surrounding the marijuana space, marked by an imbalance between investor expectation and the reality of company results, alongside struggles for the sector in its capital-raising ability.

For iAnthus’ part, the company recently confirmed a US$100 million financing plan in September, backed by Gotham Green Partners, to help in building out the company’s assets within its existing markets, including Arizona, Colorado, Florida and Nevada, among others.

Ford said the funding would be used to achieve cash flow generation by the second half of 2020 as the company prepares to position itself in the consumer branded goods space.

Finding capital has been a difficult feat for some MSOs in the space, however.

“We’re all getting painted with the same brush,” Ford told INN. “Six months ago, anyone who smoked a joint could raise US$100 million. Now? It’s tough.”

In the company’s results for Q2 2019, iAnthus brought in US$25 million in pro forma revenue, up 35 percent from the first quarter.

The company also noted an increase in its production and retail footprint in Florida, a coveted marijuana market. iAnthus expanded its cultivation facility in Florida to 120,000 square feet and opened an additional five dispensaries, bring its total to eight retail locations across the coastal state.

The MSO also announced the acquisition of the Nevada-based Sierra Well, a vertically integrated cannabis firm, bringing iAnthus’ footprint to six dispensaries in Nevada.

Despite iAnthus’ recent moves toward becoming cash flow positive, Ford told INN the stock is being traded at a rate four times lower than that of its peers that have what he described as very similar strategies and results.

Ford urged investors to buy into the company at its discounted rate in a recent earnings call.

Moving into 2020, Ford said the company plans on pushing its brands further into the retail market, with its line of branded “Be.” stores set to open in Brooklyn, New York, during the fourth quarter this year.

The market thus far has been driven almost solely by investor sentiment, Ford added. He said the space could be benefited by a “watershed moment,” though, not unlike the recent passing of the SAFE Banking Act through the House of Representatives.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms, is pleased to announce the appointment of Mr. Al Reese, Jr., to its Board of Directors

Mr. Reese has over 40 years experience in public and private businesses including as CFO of a formerly Nasdaq-listed energy company where he arranged finance transactions totaling over $10 billion dollars during his 20-year tenure. Mr. Reese was a Director and Chairman of the Audit Committee of a community bank in Texas for ten years until such time as it was acquired by a larger banking group in 2018.

Keep reading... Show less

Mexico looks to be closer than ever to cannabis reform, with the country releasing its regulation plans to make the drug legal in medical settings.

Meanwhile, despite the financial hardships seen recently in the Canadian cannabis market, CEOs in the country are still receiving top dollar, as per a new study.

Keep reading... Show less

Not for Distribution to United States Newswire Services or for Dissemination in the United States

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today the pricing of its previously announced best efforts overnight marketed offering (the “Offering”) of subordinate voting shares (the “Offered Securities”) of the Company at a price of C$16.00 per share for a total gross proceeds of approximately US$125 Million. The issue price represents a 3.3% discount to the last close of the Company’s subordinate voting shares traded on the Canadian Securities Exchange as of January 14, 2021. 100% of the Offering is expected to be purchased by a total of seven new and existing institutional investors, including current shareholder, Wasatch Global Investors.

Keep reading... Show less

Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN) Red Light Holland (OTC: TRUFF) (CSE: TRIP) and Aphria, Inc. (NASDAQ: APHA).

Investors are cheering new and expected legislation which is opening new market opportunities for both cannabis and psychedelics globally. Innovation in premium branding, growing technologies, manufacturing, with operational execution are key, in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders in cannabis and psychedelics:

Keep reading... Show less

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company”) today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,828,571 units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock at a public offering price of $5.25 per unit (all prices in US$). The warrants have an exercise price of $6.58 per share, are immediately exercisable and will expire five years following the date of issuance. In connection with the Offering, the underwriter exercised in full its option to purchase an additional 274,285 shares of common stock and additional warrants to purchase 274,285 shares of common stock. The gross proceeds from the Offering were approximately $11.04 million, before deducting underwriting discounts and estimated offering expenses. No securities were offered or sold in Canada, including through the CSE or any other trading market in Canada

H.C. Wainwright & Co. (“Wainwright”) acted as the sole book-running manager for the Offering and is a non-related party to the Company.

Keep reading... Show less