October brought along the much-anticipated “Cannabis 2.0” stage of legalization in Canada; while edible products won’t be sold until December, the market celebrated the policy.

Meanwhile, Zenabis Global (TSX:ZENA) suffered through a difficult month for its share price after investors proved to be skeptical of a new rights offering to raise additional capital.

Also during the month, Hadley Ford, CEO of iAnthus Capital Holdings (CSE:IAN,OTCQX:ITHUF), told the Investing News Network (INN) that the capital-raising landscape for marijuana companies has significantly changed, with stricter guidelines.


Cannabis - Will The Fortune 500 Join The Party?

Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!

Zenabis makes case for rights offering as stock takes hit

As mentioned, Zenabis has had a difficult month, in part due to concerns surrounding a C$20.8 million rights offering revealed toward the end of October.

Prior to the rights offering, the company was already on the downturn following the announcement of a split and delay on the expansion of its site in Langley, British Columbia.

During a conference call with investors after the rights offering news, the executive team of the company defended the offering and described it as the best option at this time for Zenabis to raise capital without affecting valuations for its shareholders.

“Zenabis determined that it was not in the best interest of shareholders to raise incremental debt from non-traditional sources, given additional debt would’ve increased cash burn until it became cash flow positive (and) increased our overall leverage, and given the requirement to raise convertible debt would’ve been meaningfully dilutive to shareholders,” CEO Andrew Grieve told investors during the call.

The company admitted it could not complete a traditional unit raising and was hard against a convertible debt offering.

iAnthus exec paints gloomy picture for cannabis investing landscape

“The actual values that exist in the (cannabis) market today bear no resemblance to what the value of the actual companies are,” iAnthus’ Ford told INN in an interview.

The executive explained that a lot of companies are struggling to raise capital as they continue operations in thriving markets, such as the US.

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

Watch the video above to get the full details on cannabis highlights for the month of October.

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

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.


Cannabis - Will The Fortune 500 Join The Party?

Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or the “Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products and Bluma Wellness Inc. (“Bluma Wellness”), a vertically integrated operator in Florida, today announced the closing of the Company’s previously announced acquisition of Bluma Wellness.

Transaction Highlights

Keep reading... Show less

Construction of New Facility Under Way

TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is pleased to announce the appointment of commercial farming and construction expert, Josh Baker, to its Board of Directors today.

Keep reading... Show less

– Virtual Investor Conferences and KCSA Strategic Communications today announced the agenda for the upcoming KCSA Cannabis Industry Virtual lnvestor Conference. Individual investors, institutional investors, advisors and analysts are invited to attend. The program opens at 10:15 AM ET, with the first live webcast at 10:30 AM ET, on Tuesday, April 20 th .

Keep reading... Show less

Launching Digital Sales Platform

Global Wellness Strategies Inc. (CSE: LOAN) (FSE: O3X4) (OTCQB: PNNRD) (formerly Redfund Capital Corp.) (“Global” or the “Company”) announces KaleidoMyco agreement with digital marketing firm The Wolf of Marketing to launch digital sales platform.

Keep reading... Show less

An Emerging Markets Sponsored Commentary

Health and wellness, beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) recently announced that following the appointment of former Pepsi Co. executive, Melise Panetta to President of the organization. it has further bolstered its leadership team with veteran consumer packaged goods (“CPG”) expertise, which is anticipated to deepen and expand BevCanna’s existing sales and distribution network, and accelerate growth.

Keep reading... Show less