The COVID-19 pandemic is likely to force at least a dozen cannabis companies to file for bankruptcy as available liquidity dries up, according to Tilray Inc.'s chief executive officer.
"I've actually been surprised by the dozen bankruptcies that have already happened," said Tilray CEO Brendan Kennedy in a phone interview with BNN Bloomberg.
"Based on the calls that I'm getting, I'm expecting another dozen more as funding has dried out,” he added. “If companies haven't already strengthened their balance sheet, they've got a hard road ahead."
The pandemic has exasperated liquidity concerns for much of the cannabis sector. Companies in the space already faced challenging conditions amid overspending, inventory writedowns on overpriced products, and steep debt repayment plans, leading several firms to file for creditor protection in the first half of the year.
Read more at bnnbloomberg.ca