With $34 Million in Tow at the End of Q2, Plus Products Unrattled by Cannabis Market Tumult – Baystreet.ca

Early in 2018, so-called pot stocks were essentially halved. After a rebound, a 50% pullback happened again late in the year. This latest drop, which started in March 2019 and has already erased more than half of the valuations of most cannabis-related companies, is not surprising to those that have watched evolving markets before.

In short: This too, shall pass.

It is with good reason that Merida Merger Corp. (NASDAQ: MCMJU)(NEO: MMK.UN), a blank check company run by Mitch Baruchowitz and Peter Lee, was able to raise $120 million this month for opportunities in the cannabis space and billionaire money manager Jim Simons’ Renaissance Technologies hedge fund added or opened positions in six of the biggest names in cannabis during the third quarter.

“Market tumult is part of any business. While it certainly can be uneasy, it keeps management at the top of their game to move efficiently forward,” said Jake Heimark, co-founder and CEO of hemp and cannabis food company Plus Products (CSE: PLUS)(OTCQX: PLPRF), in a recent phone conversation on market volatility with Baystreet.ca. “We’re still really early in the evolution of legal cannabis and valuations will take care of themselves over time. Our team remains focused on holding our leadership position in California and building similar top-selling positions in new markets and with new products,” he added.

Clearing the Cash Hurdle

One of the single biggest obstacles for cannabis companies today is capital. The sharp decline in stock prices – along with companies hemorrhaging cash – has many institutions, funds and family offices trepidatious and moving cautiously with investments amid the market downswing.

To that end, Plus hasn’t gotten too far out over its skis. After raising CAD$25 million from selling convertible debentures and from the exercise of warrants during the first half of the year,

Read More Here...

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top