CRLBF - A Major Cannabis Stock Merger Is Now Complete but Few Shareholders Are Cheering
What a difference a year can make.
At this time last year, the marijuana industry was fully expected to see its rapid sales growth result in recurring profitability within a year's time. Further, ongoing state-level legalizations in the U.S., coupled with the launch of derivative pot products in Canada, were believed to be a means of improving cannabis stock margins. However, all of these forecasts proved too aggressive, with the North American cannabis industry suffering from a combination of supply issues and high tax rates, both of which encouraged illicit producers.
Not only did these struggles throw out any hopes of near-term profitability for most brand-name pot stocks in the industry, but it also disrupted merger and acquisition activity within the cannabis space. A number of deals that looked like slam-dunk winners when announced have become a source of unrest for shareholders.