Cannabis stocks have lost about a quarter of their value in the first half of 2020, compounding a 50 per cent drop in 2019.
The upside for investors? There’s never been a better time to do distressed deals, according to Codie Sanchez, managing director at private equity firm Entourage Effect Capital LLC.
Liquidity in the sector has been diminishing since the first quarter of 2019 but now that trend is “on steroids,” with private companies’ access to capital almost completely dried up, Sanchez said at a virtual conference hosted by Prohibition Partners last week.