It's Closure for Distributors Pacific Expeditors

RIVERSIDE, Calif. - Jan. 3, 2020 - PRLog -- his is your latest Cannabis Market Insider report for the cannabis markets. The year has opened strong for 2020 with the Marijuana Index pushing upward from $112.00 to $120.60 since Dec 31st closing, stopping the latest 7 day decline. The last time the Index was this high was over a month ago at Thanksgiving. The biggest gainer was MariMed, Inc. with a 34% increase in their stock value. MariMed, trading with the symbol MRMD, announced the opening of a new dispensary as well as a strong outlook for their company in 2020. I am concerned, however, because when looking at their balance sheet, all things remained relatively the same, except almost $3.5MM disappeared from last quarter with no real return other than a $10MM increase in their receivables. As most people can attest to this industry, cash is king and receivables will go unpaid. The significant operating loss reported last quarter that was 6 times that of the prior quarter isn't giving me the best feeling either. Guess only time will tell.  The largest decliner was Aurora Cannabis. Hard not to see this coming as Aurora continues to be pummeled by a string of bad news, including key personnel jumping ship. Aurora lost 6.48% on over 32MM share volume in trading, ending up at $2.02 a share.

Speaking of personnel jumping ship, Pacific Expeditors, aka PacEx, of Santa Rosa, CA is shutting its doors and adding to the layoffs of people employed in the cannabis industry. Chris Coulombe, CEO of PacEx, was once heralded with an award by the North Bay Business Journal forty under 40 award. What I can report is that PacEx was fraught with poor decision making, lack of leadership at the helm, and unpaid bills that likely amount in the millions of dollars. I know of one Manufacturer demanding their products be returned, and lawsuits are imminent if Mr. Coulombe can't find a way out of the mess created. The website is still up and no indication of closer, but I can tell you based on several credible sources that PacEx is or will be, no longer in business. Sources in the industry tell me that their experience with PacEx was not a good one and it doesn't surprise them that this is the end of the line. That aside, the independent facts are present. The only question is how will the Bureau of Cannabis Control handle products under PacEx control? Can products be returned? Do they have to be destroyed? This event will surely lay the foundation for how future distributor closures will be processed.
Written by: Dr. Wise (aka Dr. D)

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