On Wednesday, the Motley Fool reported after attaining two straight days of gains, the marijuana stocks again fell. The catalyst was a steep quarterly net loss from Aphria which pulled down stock by 17%. But also pulled down its peers Aurora Cannabis Canopy Growth and Curaleaf in late afternoon trading. Although much of the fall for Aphria was a result of pandemic related accounting moves, it starkly illustrates the persistent difficulty marijuana companies have in simply turning a net profit. Dilutive stock issues are all too common in the marijuana business, and like those constant bottom-line losses, investors are losing patience with them.
– Sean Hocking, Cannabis Law Report, 07/30/2020 3:48:19 AM