By Nichola Saminather
By Nichola Saminather
TORONTO, Feb 7 (Reuters) – Traders are bracing for extra job cuts and writedowns at Canadian hashish producers earlier than the trade stabilizes and turns into worthwhile, after two of the most important weed firms, Aurora Hashish ACB.TO and Tilray TLRY.O introduced value reductions this week.
Canada legalized leisure hashish in October 2018 however earnings have confirmed elusive for many marijuana firms as fewer-than-expected retail shops, larger costs than on the black market and gradual abroad progress resulted in oversupply.
“The Aurora story will probably be far more frequent in 2020,” stated Hap Sneddon, founder and chief portfolio supervisor at Castlemoore. “I do not see rationalization. I see firms leaving the enterprise.”
Many producers, together with Cover Progress WEED.TOCGC.N, Aurora, Tilray and Aphria APHA.TO quickly expanded at residence and abroad as capital flooded into the trade earlier than legalization.
Aurora…