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Do due diligence, not doo-doo diligence.

Distressed #cannabis assets present a particularly tricky honeypot situation. On the one hand, there's a strong allure enticing you to get in on the fire-sale investment/deal/opportunity quickly, before you miss out!

However, on the other hand.... there's a reason(s) these companies are in such desperate need of financing that they're willing to take money at expensive and/or otherwise unfavorable terms.

The real issue is that it is VERY easy to misdiagnose the reason a company is struggling. For example, by assuming the specific opportunity/situation developed as a result of “industry” problems, rather than company-specific issues.

There are endless ways a cannabis company (or really any other type of company) can end up in a "fire-sale" situation.

Unfortunately, there are also endless ways for these companies to mislead, misdirect, misrepresent or otherwise outright defraud their investors into mistakenly believing that they FULLY understand the risks involved.

There are a lot of snakes and scorpions in this #business. Watch your back. And your front. And your everything else.

Better yet, hire a good #lawyer to C.Y.A..

Knowing the right questions to ask makes all the difference.

Caveat emptor.

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