This Cannabis Company Isn't Issuing Shares, It's Buying Them Back
It's difficult for U.S.-based cannabis companies to raise money from banks due to the federal ban on marijuana. And many of these multi-state operators are burning through cash, meaning they'll need to dip into the equity markets to help keep their operations afloat. For investors, that can be frustrating because frequent share issues not only dilute their ownership in the company, but also drive the share price down.
None of this is the case for marijuana producer Ayr Wellness (OTC: AYRW.F), which recently announced that it was going to buy back shares rather than issue them. But is this a good move for a company that will likely need cash to keep funding its growth?
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Source Fool.com
