As much as $3 billion in debt will come due for major U.S. cannabis operators by the end of 2026, a “wave” of maturities that could portend a significant shake-up in the regulated industry.
Most analysts contend that companies have enough time to craft solutions to refinance their debt on favorable terms.
However, some factors not under the industry’s control – such as major federal or state reforms that could open new markets and ease operations for existing companies, or a total lack thereof – will also determine whether companies are forced to sell assets, disappear entirely or cede more control to their lenders, observers told MJBizDaily.
“It paints a concerning picture,” said Jesse Redmond, a California-based analyst and head of cannabis at Water Tower Research, an investment advisory firm.
“I think anyone investing in cannabis has to be concerned,” he added.
This item originally appeared on MJBizDaily. The rest of the story is available here.
