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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index lost 1.43 to 214.51, while the CSE Composite Index added 37.90 to 842.68. South of the border, U.S. MSO (multistate operator) Green Thumb Industries Inc. (GTII) added $2.46 to $39.06 on 675,100 shares, after trumpeting a $217-million (U.S.) private placement of three-year notes. It is using the money for expansions and to repay $105-million (U.S.) of separate debt.
The highlight of the financing is the low interest rate -- at least, low for the cannabis sector. The coupon on the notes is a mere 7 per cent. Cannabis operators are used to paying close to double that rate, if not more. The debt that Green Thumb plans to retire, for example, was issued in 2019 at 12 per cent. Fellow MSOs Cresco Labs Inc. (CL: $16.04) and Curaleaf Holdings Inc. (CURA: $17.35) both did debt financings in 2020 at interest rates of about 13 per cent. (They were still better off than Acreage Holdings Inc. (ACRG.A.U: $$5.29) or Canada's Speakeasy Cannabis Club. (EASY: $0.58), which in moments of desperation have borrowed money at interest rates of 55 to 60 per cent -- nearly enough to fall afoul of Canada's Criminal Code.)
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Good morning, I will like to know why TGOD has been under for a very long time, and still keep going down. I have tried on many occasions to get hold of someone from TGOD with no avail. I will like to get some info of where this company is going. I have been down with measly peanuts. With all these cannabis companies some is going some where, while this is going down with no hope. Can I get some info so I can make my decision with TGOD!