Delta 9 Cannabis Inc. produced and sold recreational cannabis in Canada—a market that after legalization was characterized by volatility in supply, demand, and regulations. Nonetheless, Delta 9 grew rapidly, and March 31, 2020, marked Delta 9’s best-ever fiscal quarter. However, Delta 9’s share prices had deflated over the previous year and the economy had recently been upended by the COVID-19 pandemic. Thus, there was considerable uncertainty regarding the outlook of Delta 9’s three main business segments, each facing unique challenges and opportunities. The chief executive officer must decide how to allocate existing capital to keep Delta 9 on the path to growth.
Delta 9 Cannabis Inc. produced and sold recreational cannabis in Canada-a market that after legalization was characterized by volatility in supply, demand, and regulations. Nonetheless, Delta 9 grew rapidly, and March 31, 2020, marked Delta 9's best-ever fiscal quarter. However, Delta 9's share prices had deflated over the previous year and the economy had recently been upended by the COVID-19 pandemic. Thus, there was considerable uncertainty regarding the outlook of Delta 9's three main business segments, each facing unique challenges and opportunities. The chief executive officer must decide how to allocate existing capital to keep Delta 9 on the path to growth.