In this week’s exclusive, WeedWeek business columnist Dan Mitchell finds California manufacturers and farms are largely able to maintain operations, even as the financial forecast gets cloudy:
Flow Kana (a WeedWeek advertiser) has reconfigured its workspaces to distance its lab workers, packagers, inventory managers, office staff, and others. It has installed hand-sanitizing stations throughout its facilities and issues gloves and handwipes to drivers and outside salespeople. While he said that cannabis being declared an “essential” business in California has been “a bit of a silver lining,” [Vice President of business development Adam]Steinberg’s under no illusion that the industry will be unscathed.
He noted in particular that capital markets, already closing to the industry before the virus, might become even more stagnant if the economy struggles. There are “active discussions” going on about future financing and investment, but “we’re day-to-day at the moment.”
Flow Kana is among the cannabis industry’s most successful private fundraisers. It has raised a total of $175M, with $125M of that coming last year.
- ????Donny Alexander has lots more on conditions in the Golden State in the WeedWeek California newsletter.