2024-01-25 06:30:00 ET
For years, Canopy Growth (NASDAQ: CGC) was one of the safest cannabis investments. That was due to the billions in cash it had on its books thanks to an investment from alcoholic beverage maker Constellation Brands . But for years, Canopy Growth also continued to burn cash.
Now, its cash balance is tighter, and the business is still using up tons of money. Is the company in the midst of a cash crunch, and if so, what does that mean for investors?
On Jan. 18, Canopy Growth said that it entered into an agreement with institutional investors to raise $35 million. This is not unusual for businesses that are growing, and it's one of the reasons investors need to exercise caution when it comes to companies that are in their early growth stages.
For further details see:
What Would a Cash Crunch for Canopy Growth Mean for Investors?