Cannabis companies looking for a cash injection will probably have a tougher time in coming months than in previous years as the investor pool shrinks, and financing options have narrowed, several experts told attendees during a finance forum this week in Las Vegas.
During Cannavest at MJBizCon this week, a number of financial professionals agreed that money is becoming increasingly expensive and hard to come by for those in the cannabis trade but emphasized that “the capital is there, for stronger operators,” as Valay Shah of C3 Industries said.
But, Shah noted, “It’s really tough right now. It’s hard to find new pathways” to actually landing capital investments due to several factors ranging from the overall economy to the poor returns on investment that many financial backers experienced over the past few years, as cannabis stocks have been in a lengthy slump.
“New capital sources are coming to the space, but the cloud to that silver lining is capital is also leaving the space,” said John Lykouretzos, CEO of Focus Growth Asset Management, who added that more “banks are starting to kick the tires” in parts of the industry.
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