The silent killer of cannabis stocks...Dilution

Interesting

The silent killer of cannabis stocks

However, all of these risks are well known and readily visible. There's one potentially silent killer which could wreck marijuana stocks that investors seem completely unaware of -- dilution.

The legal marijuana industry isn't particularly profitable, save for a handful of the larger players in the Canadian market that have managed marginal profits as a result of medicinal cannabis sales. This means cash flow for most pot stocks is either marginally positive or negative. For those that are rapidly expanding their growing capacity organically or through acquisitions, cash flow is most decidedly negative. Therefore, in order to generate the capital needed to expand growing capacity, marijuana stocks in Canada have been turning to bought-deal offerings.

Source

APH Insider Transactions Buy/Sell And New Cheaper Stock Options

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Filing Date	TransDate	Insider Name	Ownership Type	Securities	Nature of transaction	Volume
Jun 6/18	May 31/18	Waddington, Philip	Direct Ownership	Deferred Share Unit	38 - Redemption, retraction, cancellation, repurchase	-16,000
Jun 6/18	May 31/18	Waddington, Philip	Direct Ownership	Options	38 - Redemption, retraction, cancellation, repurchase	-30,000
Jun 6/18	May 31/18	Staudt, Dennis Joseph	Direct Ownership	Deferred Share Unit	38 - Redemption, retraction, cancellation, repurchase	-16,000
Jun 6/18	May 31/18	Staudt, Dennis Joseph	Direct Ownership	Options	38 - Redemption, retraction, cancellation, repurchase	-35,000
Jun 6/18	May 31/18	Dym, Shawn	Direct Ownership	Deferred Share Unit	38 - Redemption, retraction, cancellation, repurchase	-16,000
Jun 6/18	May 31/18	Dym, Shawn	Direct Ownership	Options	38 - Redemption, retraction, cancellation, repurchase	-48,000
Jun 6/18	May 31/18	Persofsky, Renah	Direct Ownership	Deferred Share Unit	38 - Redemption, retraction, cancellation, repurchase	-16,000
Jun 6/18	May 31/18	Persofsky, Renah	Direct Ownership	Options	38 - Redemption, retraction, cancellation, repurchase	-48,000
Jun 6/18	May 31/18	Caciavillani, Cole	Direct Ownership	Deferred Share Unit	38 - Redemption, retraction, cancellation, repurchase	-35,000
Jun 6/18	May 31/18	Cervini, John	Direct Ownership	Deferred Share Unit	38 - Redemption, retraction, cancellation, repurchase	-35,000
Filing Date	Transaction Date	Insider Name	Ownership Type	Securities	Nature of transaction	Volume or Value
Jun 8/18	Jun 1/18	Merton, Carl	Direct Ownership	Options	50 - Grant of options	50,000
Jun 8/18	Jun 1/18	Cervini, John	Direct Ownership	Options	50 - Grant of options	50,000
Jun 8/18	Jun 1/18	Caciavillani, Cole	Direct Ownership	Options	50 - Grant of options	50,000
Jun 8/18	Jun 1/18	Neufeld, Victor	Direct Ownership	Options	50 - Grant of options	100,000
Jun 8/18	May 31/18	Persofsky, Renah	Direct Ownership	Deferred Share Unit	97 - Other	694
Jun 8/18	May 31/18	Dym, Shawn	Direct Ownership	Deferred Share Unit	97 - Other	694
Jun 8/18	May 31/18	Waddington, Philip	Direct Ownership	Deferred Share Unit	97 - Other	694
Jun 8/18	May 31/18	Staudt, Dennis Joseph	Direct Ownership	Deferred Share Unit	97 - Other	694
Jun 6/18	May 31/18	Waddington, Philip	Direct Ownership	Deferred Share Unit	38 - Redemption, retraction, cancellation, repurchase	-16,000
Jun 6/18	May 31/18	Waddington, Philip	Direct Ownership	Options	38 - Redemption, retraction, cancellation, repurchase	-30,000