I’ve seen some musing lately about $OGI’s cash position and burn rate. And so has the market.

They filed a shelf prospectus November 4th, adding to a LOC and Revolver they maintain for cash. As one of the earliest to enter the land of EBITDA positive goodness – one has to wonder if their expansion plans have simply overshot demand in the short-term. Or if, perhaps…..there exists a ‘right size’ of a cannabis company that hits quality and production metrics…..and should simply be content to live in the size of suit they have.

And it prompts the question: is cannabis is too ductile an output to scale up beyond a certain level?

Will segmentation doom those who don’t scale to the size where they most naturally ‘fit’?

Big questions for a Tuesday. $OGI is putting up a backstop and building a ‘financing runway’ – just in case. Sector maturation isn’t a bad thing. But like any teenager, the ultimate end-state isn’t yet known.

I bought a preroll of Edison’s Rio Bravo on the weekend. Tasted no hell, but smoke was fine and product was good. Here’s hoping our friends out in New Brunswick keep on growing, and keep getting better.