Beleaguered cannabis producer Canopy Growth received a $0 price target by Eight Capital on Wednesday after the Toronto-based financial firm said it is no longer appropriate to value the Canadian operator as a going concern.
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In a research report titled “Last Puffs of the Roach,” analyst Ty Collin said it’s Eight Capital’s view that Canopy has:
Fewer than 12 months of cash runway. A lack of viable financing alternatives. Large ongoing losses without a clear path to profitability.
“We therefore apply an asset-based/breakup valuation for Canopy, where we find a net asset value of zero after accounting for the Company’s substantial debts,” Collin wrote.
“With the recent bankruptcy of leading cannabis retailer Fire & Flower and the distressed sale of Hexo to Tilray, we think investors should be awake to the fact that no Canadian cannabis company is too big to fail in this
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