Two weeks ago we wondered how much cash hemorrhage 2019 Q4 reports would reveal among public cannabis companies. Today, there is a tightening of the pack – almost every company has the same amount of cash – except Acreage Holdings, which notified Canadian and American securities administrators that it would delay its Q4 and 2019 annual reports a second time, to arrive sometime before the end of May rather than the original deadline of before April 30.
For young companies, current assets can be an indicator of a company’s health, since it demonstrates tight spending habits and an ability to reap your marketing dollars’ work. Except when it isn’t a good indicator, like when you have to spend a lot of extra cash to boost marketing, or make extra CapEx investments, then it just shows that you’re trying to grow the business.
But one thing this chart demonstrates for sure, is that since public cannabis companies have less cash on hand, they are much less likely to make big acquisition moves for a while, creating room for small, independent operators.