Canopy Growth (NASDAQ: CGC) has been scaling back its operations to contain its cash burn. It's no longer funding its BioSteel nutritional supplement line. It recently sold its facility in Smiths Falls, Ontario, which previously served as its headquarters. The company is getting smaller and leaner. But the problem is that the cash burn still continues. Will Canopy Growth end up running out of money, and what would that mean for investors?

Beer maker Constellation Brands announced a $4 billion investment in Canopy Growth back in 2018. This provided the company with plenty of cash to help fund its operations and bring aboard a partner, which would make Canopy Growth seem like a safer pot stock to invest in than its peers.

But over the years, with Canopy Growth's cannabis business stumbling, the company's current assets, which include cash and short-term investments, have deteriorated sharply.

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Source Fool.com