Farmer’s Edge on the edge

Back during sunnier times for most technology ventures (March, 2021), Farmer’s Edge (TSX: FDGE) managed to raise gross proceeds of $144 million in their IPO at $17/share.

Now they are trading at 19 cents per share, and a cursory look at their balance sheet shows that they have $49 million in debt, owed to Fairfax and due early 2025, and $15 million in cash. Even worse, they bled another $15 million for the first quarter.

Sometimes it is really difficult to make money in a particular sector and no matter how much money you throw at it ($620 million and counting), the story doesn’t change.