There has been a significant shift in cannabis debt issuance from equity-linked debt to straight debt.
In the early debt days of 2018, nearly all cannabis debt issues were convertibles, and many issues had additional attached warrants to achieve total coverages of over 100%.
As the U.S. MSOs became EBITDA positive in 2020, issuance of straight coupon debt began in earnest. Most of the top MSOs have now completed straight coupon issues in $100M+ sizes at rates between 8% and 10%.
This shift reflects the industry’s growing maturity and profitability.
Summary
*Sin stocks hedge during economic uncertainty
*Sin clauses, SRI and ESG may come at a financial cost
*Sin stock’s benefits in addition to being recession proof, generating strong and consistent earnings, and having limited competition
*Historical evidence on the performance supports sin stock’s higher alpha
*Sin stocks plausible underperformance due to “shunned-stock hypothesis”
L1 – L8 “How to Start a Cannabis Business” Playlist:
https://youtube.com/playlist?list=PLlhqNE1AwWecYhBUy_cA253ntANkqKvlK
Host:
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
https://www.linkedin.com/in/joshkincaid/
Episode 936 The #TalkingHedge…
Your Cannabis Business Podcast.
Covering cannabis products, reviews, business news, interviews, investments, events, and more.
https://www.theTalkingHedgepodcast.com
Music Info:
Song: Beat | Keep On | 2020
Artist: Milochromatic Beats
&
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018
Artist: LuxrayBeats
Keywords:
Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks, Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data
Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers. This is only entertainment.
source
