This Is a Huge Red Flag for the Cannabis Industry
Cannabis companies used to be focused solely on growth at all costs. But that's not the case anymore. Investors are growing weary of businesses that aren't generating profits, and that's putting pressure on them to be more financially responsible. Marijuana companies are normally chomping at the bit to jump into new markets that have recently legalized cannabis use, but that trend could be changing.
There have been recent developments involving marijuana businesses slashing costs and laying off staff, but what really got my attention was when a top cannabis company dropped a bombshell: that it would be exiting not one but three states.
On Jan. 26, multi-state marijuana operator Curaleaf Holdings (OTC: CURLF) announced that it will be shutting down most of its operations (production and cultivation) in three top markets: California, Colorado, and Oregon. The company says that the move is "part of its continued effort to streamline its business." It also said that it would consolidate its operations in Massachusetts.
Source Fool.com
