Oversupply, declining prices, and a slow rollout of stores in Ontario has led to consecutive quarters of weak revenue for many licensed producers.
Cannabis industry insiders are bracing for a slew of bankruptcies in the coming year as small and medium-sized companies low on cash struggle to raise funds in the downtrodden sector.
“We have had a busy few years, but next year we’re going to be busy for a different reason — we expect a few million dollars in legal fees from insolvencies and consolidation,” said Ranjeev Dhillon, a partner at McCarthy Tetrault LLP and the firm’s cannabis group lead.
Dhillon says that his team is already seeing companies that are heading down that path.
– Read the entire article at Financial Post.