https://podcasts.apple.com/us/podcast/the-cannabis-investing-podcast/id1455998535?i=1000645514230

• Bengal Capital’s Jerry Derevyanny discusses his evolving thoughts on 280E and the process of rescheduling cannabis.
• What metrics should be used when evaluating cannabis stocks?
• Concerns about debt management and lack of transparency in the industry.

“The more uncomfortable answer is that there are no good metrics for investors to quickly take a look at these companies and get a really good feel for them. And that comes from, as we kind of noted in the letter, the companies really threadbare disclosures about their businesses.

The business of a company, an MSO that operates in Massachusetts and Illinois, those two businesses are distinct. They might share different executives, but they don’t share production facilities. They don’t share any meaningful things. And they’re very, very different margin profiles. They can have different capital employed, all that kind of stuff. Unfortunately, if you just had that kind of business, that’s already difficult to try to tease apart what’s going on where and what’s going to happen in the future.

Take a company like Cannabist (OTCQX:CBSTF) that operates in 16 markets and it becomes almost impossible. And the companies don’t make it any easier. And I think that’s by design, in large part, because they don’t have to. The investors aren’t kind of clamoring for it and it kind of helps hide some of the things that are going on.”