137
Balance sheet tweaks: If you notice that a company has made a vast amount of write-offs in its books then this could be another sign that they are considering going public. Due to accounting rules companies are required to write off inventory when it is not deemed able to sell or worth
less than it originally cost. There is plenty of leeway in how this is practiced though. A reason you might see this done is to avoid a negative reaction from shareholders down the road when this is inevitably done.
Conclusion:
The possibility of private cannabis companies going public is something we are likely to see more and more of as this space evolves and grows going forward. Understanding why companies may choose to go this route is important and knowing what signs to look for should assist you when evaluating your investments. To be blunt, we can look for signs of management changes, policy changes, selling parts of business and balance sheet adjustments as signs that a potential IPO is around the corner. As an investor, you can be rewarded when a good cannabis company goes public and you are then able to cash in on your shares. Like companies looking to boost their research and development - we hope this has helped and encouraged you to continue your cannabis research and develop your investor skills.
133