Aurora Cannabis May Need to Write Down $1 Billion Tied to Its MedReleaf Acquisition
Pardon the pun, but at this time last year hopes were incredibly high for the legal marijuana industry. Our neighbor to the north was preparing for the launch of high-margin derivative products, such as vapes, edibles, and infused beverages, while in the U.S. numerous states were in the process of pushing forward measures that would legalize medical or recreational pot. With tens of billions in weed sales conducted annually in the black market, the door appeared wide open for the legal market to capture a big piece of this pie.
But this wasn't to be the case. The North American pot industry has struggled under the weight of high tax rates on legal product, production shortages and/or bottlenecks, regulatory delays, and the inability to access traditional forms of financing.
Perhaps no company has been the poster-child of this disappointment more than Alberta's Aurora Cannabis (NYSE: ACB).
Source Fool.com
