Leafly to Issue Going-Concern Warning on Short-Cash Position
By Sabela Ojea
Leafly said its annual report for 2023 will include a going-concern notice due to its current financial position.
The cannabis-shopping platform on Thursday said it doesn't have enough cash to repay its $29.7 million of convertible notes, set to mature and due in January 2025.
The company ended the year with $15.3 million in cash, down from $24.6 million at the end of 2022.
Leafly's warning comes as it forecasts another drop in revenue in the first quarter following a 10% decline in revenue in the fourth quarter.
These going-concern opinions are published in the annual reports of public companies and refer to their likelihood to remain in business for the next 12 months.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
March 28, 2024 16:59 ET (20:59 GMT)
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