The lack of liquid capital is crushing the cannabis industry and it’s not just hurting plant-touching operators. Companies across the supply chain are affected. Vendors are having to wait past normal terms to receive payment leading to massive cash flow issues. Industry operations are being forced to prioritize spending internally vs. externally which leads to possible defaulting to outside vendors to prioritize internal payroll. Add in rising inflation, high tax rates, and decreasing wholesale prices, and you have a potentially disastrous domino scenario set up. As an optimist, recognizing these variables at risk makes it even more challenging to understand the macro implications.
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