Cannabis Corner: Keep an eye on these industry stocks

Article Excerpt

Canada legalized cannabis over four years ago. While demand has been steady, stiff competition has cut selling prices significantly. Meanwhile, advertising restrictions and plain packaging rules make it hard to build brands that win customer loyalty. Still, we think some companies have a distinct edge—including their prospects for added sales in the U.S. as President Joe Biden stirs talk that the federal government could eventually decriminalize cannabis use. Those are the quality stocks we focus on in “Cannabis Corner.” FIRE & FLOWER HOLDINGS (Toronto symbol FAF; TSINetwork Rating: Speculative) (fireandflower.com; Shares o/s: 45.5 million; TSI CQR: ) has ceased trading after the company filed for protection under the Companies’ Creditors Arrangement Act (CCAA). The company had been actively pursuing additional financing to fund its operations, and on May 26, 2023, engaged a financial advisor to assist it with reviewing strategic options, including financing options. Following a review and after careful consideration of all available alternatives, and consultation with legal and financial advisors, Fire & Flower determined…