Not quite sure what you are trying to say but I don't think you got your point across. Here are some basic pointers:
Cannabis is a global commodity
Due to the hype around cannabis, too many poorly run companies (including CAN) raised large quantums of money and attempted to set up cultivation facilities in melbourne.
Now many of these are shutting down as they have realised that there is too much cultivation to meet global demand.
Australia is one of the world's most expensive places to do cultivation of cannabis because of our high land, labour, water and electricity costs.
CAN took a gamble on starting construction on the Mildura facility prior to obtaining bank finance for the construction and also prior to confirming that there is indeed a sufficient demand for their product.
The market has realised that there will not be enough demand for CAN's product and with Aurora cutting back on their own facilities, it does mean that CAN's Mildura facility will no longer be needed.
Bank funding has not been obtained, Aurora do not plan to purchase the product and so Mildura is not going to be built out.
CAN have only two options - VA or CR.
It is one of the hardest environment's to get financing currently and so the only way to achieve this would be at a significant discount to list price (probably 20-30% discount).
Due to some significant errors by the CAN executive team, the widely held belief is that CAN should sack their existing management and bring on better executives.
CAN Price at posting:
87.5¢ Sentiment: None Disclosure: Held
