3 Cannabis Firms On A Collision Course With Bankruptcy

Going forward, Aurora Cannabis will need to find a way to fund the business and we would not be surprised if we saw it sell off additional assets. The company has significant leverage to the global cannabis opportunity which provides the business with an avenue to raise capital. The next twelve months are crucial for Aurora Cannabis and this is an opportunity that we will be closely following.

DionyMed Brands is what Companies Should Aim to Not Be Like

DionyMed Brands is the perfect example of a cannabis company that was unable to operate ethically and ended up going out of business because of it. In early 2019, DionyMed terminated its contract with Eaze after claiming that the processing procedure met California regulatory requirements. Following this decision, DionyMed said it was going to invest in its own delivery service and made up an excuse to terminate the Eaze contract for cause.

DionyMed’s mistake was canceling a contract for services (payment processing to be specific) that were not even provided by Eaze. This decision did not sit well with Eaze which accused DionyMed of utilizing a series of schemes in an effort to destroy the company and take over its business.

The last few months have been more than challenging for DionyMed (and rightfully so) and this is an opportunity that we are cautious with. Following these deceptive actions, DionyMed has been de-listed from the Canadian and the US stock exchanges and it is unfortunate to see the impact that a few bad actors can have on a business.

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Disclosure: This report was authored by and is property of Technical420. All information and data relied upon in drafting this report is publicly available. The author believes and considers its ...

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Cannabis Stock Buyer 8 months ago Member's comment

Lost of these cannabis companies are in trouble. I suspect many won't survive the pandemic.