Cannabis Companies Aren't Just Laying Off Workers, They're Exiting Key Markets
The cannabis industry is in free fall. Companies are struggling to find ways to grow, losses continue to pile up, and cash burn remains a big problem. For some businesses, that means it will take more than just layoffs to get things under control. Some large multi-state operators (MSOs) have been going to significant lengths this year and are planning to exit key markets.
Trulieve Cannabis (OTC: TCNNF) is one of the larger, more notable MSOs in the industry. For a while, the big knock on the business was it was too focused on the Florida market, where it has more than 100 dispensaries. It has expanded into other states since then, and one of the areas it was targeting as a key growth opportunity was the northeastern U.S.
But on June 1 the company said that it would be taking "additional measures to preserve cash and improve financial performance," which include ceasing operations in Massachusetts by the end of this year. The company also says that it will be exiting Nevada's wholesale market and getting rid of some retail outlets in California.
Source Fool.com
