Frank Colombo
The nation’s largest marijuana multistate operators collectively could tap into nearly $2 billion worth of debt – should any want to borrow money to expand capacity, make acquisitions or buy back stock.
This finding underscores our previous assertion that the major MSOs are in reasonably good shape to withstand the current tumultuous economic environment – one where rising inflation and interest rates are fanning fears that the economy might be headed toward a recession.
Stock prices, meanwhile, have swooned, making it more difficult for cannabis companies to issue shares to raise money.
The lower stock prices, however, make it more attractive for the MSOs to buy back their own shares if they have available funding from other sources, such as debt financing.
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Let’s dig into the numbers.
Strong cash positions
In the case of the big MSOs, their cash positions are strong. And they are expected
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