Out Of Pocket: Which U.S. Cannabis Company Owes The Most Money In 2024?
Portfolio Pulse from Nicolás Jose Rodriguez
A recent report by Pablo Zuanic of Zuanic & Associates analyzes the debt maturities of over 20 multi-state operators (MSOs) in the U.S. cannabis industry. Ascend Wellness Holdings (OTC:AAWH) refinanced $200 million in debt, issuing $235 million in 5-year Senior Secured Notes at a 12.75% coupon rate. Other MSOs with significant debt include Schwazze (OTC:SHWZ), The Cannabist (OTC:CCHW), 4Front Ventures (OTC:FFNTF), Gold Flora (OTC:GRAMF), and Jushi Holdings (OTC:JUSHF). The report also highlights high income tax debt and leverage ratios for several companies, including StateHouse (OTC:STHZ) and Verano (OTC:VRNOF).
August 02, 2024 | 3:17 pm
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NEGATIVE IMPACT
The Cannabist has a debt commitment ratio of 41%, which could impact its financial stability and operational flexibility.
A high debt commitment ratio could negatively impact The Cannabist's financial stability and operational flexibility in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
4Front Ventures faces significant financial obligations with a debt commitment ratio in the mid/high 30s and high income tax debt relative to sales.
High debt and tax obligations could strain 4Front Ventures' cash flows and operational flexibility, leading to potential negative short-term impacts.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 70
NEGATIVE IMPACT
Gold Flora has a debt commitment ratio in the mid/high 30s, indicating significant financial obligations that could impact its cash flows.
Significant debt commitments could strain Gold Flora's cash flows and operational flexibility, leading to potential negative short-term impacts.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 60
NEGATIVE IMPACT
Jushi Holdings has a debt commitment ratio in the mid/high 30s, which could impact its financial stability and operational flexibility.
A high debt commitment ratio could negatively impact Jushi Holdings' financial stability and operational flexibility in the short term.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 60
NEGATIVE IMPACT
Schwazze has a high debt commitment ratio of 55%, indicating significant financial obligations that could impact its cash flows and operational flexibility.
High debt commitments relative to sales could strain Schwazze's cash flows and operational flexibility, potentially leading to negative short-term impacts.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
StateHouse has a high income tax debt relative to sales at 39% and a leverage ratio of 1.8x sales, indicating significant financial strain.
High income tax debt and leverage ratio indicate significant financial strain for StateHouse, potentially leading to negative short-term impacts.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 70
NEGATIVE IMPACT
Verano has a high income tax debt relative to sales at 29%, which could impact its cash flows and financial stability.
High income tax debt could strain Verano's cash flows and financial stability, leading to potential negative short-term impacts.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 60
POSITIVE IMPACT
Ascend Wellness Holdings refinanced $200 million in debt by issuing $235 million in 5-year Senior Secured Notes at a 12.75% coupon rate, extending the maturity of a significant portion of its debt.
The refinancing extends the maturity of a significant portion of Ascend's debt, alleviating immediate financial pressure despite a higher interest rate.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100