Which Canadian Cannabis Company Will Be the Next Takeover Target?
The Canadian government's decision to license over 1,000 cannabis producers, along with its inability to rein in black market operators, has been an unmitigated disaster for the country's top legal cultivators. Despite billions of dollars being spent on state-of-the-art cultivation facilities, brick-and-mortar retail outlets, and virtual storefronts, Canada's largest cannabis companies have been losing money at an alarming rate due to a vast oversupply of product in the country.
This oversupply problem has caused the prices of dry flower to plummet since the country first legalized recreational marijuana use among adults in October 2018. In turn, profit margins have cratered across the industry, spurring some notable cannabis companies like Aurora Cannabis (NASDAQ: ACB), , and Tilray Brands to diversify into non-cannabis businesses like alcohol and vegetables in an effort to become cash-flow-positive.
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Source Fool.com
