Staff, Author at Green Market Report - Page 2 of 181

StaffJune 27, 2022
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7min5940

The Daily Hit is a recap of the top cannabis business stories for June 27, 2022.

ON THE SITE

Safe Harbor Financial SPAC Deal Could Close Today

The Northern Lights Acquisition Corp. (NASDAQ: NLIT), a special purpose acquisition corporation, rescheduled its special meeting of stockholders to Monday, June 27, 2022 at 4:00 pm ET. The vote was originally planned for June 24 in order to approve Safe Harbor Financial as the qualifying transaction for the SPAC. The deal is valued at $185 million or 9.1x 2023 EV/EBITDA vs. 9.7x peer group average according to Northern Lights. The enterprise value of the IPO is 2.0x versus the cannabis SPAC average of 3.0x. Once complete, the company will begin trading on the Nasdaq stock exchange under the ticker “SHFS.” Read more here.

ManifestSeven Implodes Despite Raising Millions

How does a company raise millions, make millions, but then basically go out of business in just a few years? It seems to happen more and more in the cannabis industry. ManifestSeven is one such company. Too much debt and bloated salaries conspired to bring the company down. Read more here.

Medical Mushrooms Leave no Room for the Magic

In Oregon, when voters approved Ballot Measure 109 calling for the legalization of psilocybin in November 2020, there was a silent hurrah throughout the state among people who took magic mushrooms for fun that went something like this: “Now we can go into a psilocybin store and get a few grams of ‘shrooms—or maybe a handful—for the next concert.” But that wasn’t the case. The measure was created to provide psilocybin for mental health therapy. It was strictly medicine. Wasn’t it? Read more here.

Medical Mushrooms Showing Potential for Treating COVID Symptoms

Revive Therapeutics Ltd. (OTCQB: RVVTF) (CSE: RVV) gave an update last week on the company’s U.S. Food & Drug Administration (FDA) Phase 3 clinical trial  (NCT04504734) to evaluate the safety and efficacy of Bucillamine, an oral drug with anti-inflammatory and antiviral properties, in patients with mild to moderate COVID-19. Read more here.

IN OTHER NEWS

Curaleaf Holdings, Inc., B Noble Inc., and Fab 5 Freddy

B Noble Inc. and Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF), an international provider of consumer products in cannabis, today announced the expansion of its B NOBLE product partnership in New Jersey. Founded in collaboration with Fab 5 Freddy, legendary Hip-Hop pioneer, filmmaker, visual artist and cannabis advocate, and Bernard Noble, B NOBLE is a for-profit, cause-based cannabis brand. Read more here.

Cronos Group Inc.

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) announced that at its Annual Meeting of Shareholders held on June 23, 2022, shareholders voting in person or by proxy held in total 265,763,587 common shares of the company, representing 70.76% of the total number of common shares of the company outstanding. Read more here.

Agrify™ Corporation, Ora Pharm

Agrify™ Corporation (Nasdaq: AGFY), a provider of advanced cultivation and extraction solutions for the cannabis industry, announced it has signed a definitive agreement to supply Ora Pharm, a Waikato, New Zealand-based health and wellness company developing high-quality, sustainably-produced medicinal cannabis, with a full suite of end-to-end hardware and software products to be utilized at a 5,000-square-foot facility in Auckland, New Zealand. Read more here.

Chemesis International Inc.

Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA), announced that it will complete a consolidation of its issued and outstanding common shares on the basis of one post-consolidation common share for each two pre-consolidation common shares. Any fraction of a common share will be rounded down to the nearest whole number. As a result of the consolidation, the outstanding common shares of the company will be reduced to ‎33,588,039‎. Read more here.

Agra Ventures Ltd.

Agra Ventures Ltd. (CSE: AGRA) (OTC: AGFAF) (FRA: PU31), a diversified company focused on the international cannabis industry, is pleased to provide the voting results from its Annual General & Special Meeting that was held today in Vancouver, British Columbia. A total of 947,584 common shares of the Company were voted, representing 3.81% of Agra’s outstanding shares. Shareholders voted in favor of all applicable items of business set before the meeting. Read more here.

INDIVA Limited 

INDIVA Limited  (TSXV: NDVA) (OTCQX: NDVAF) announced the results of its annual general meeting of shareholders. At the meeting, Indiva shareholders approved: the re-election of the seven nominated directors, being Niel Marotta, Andre Lafleche, Hugh Hamish Sutherland, John Marotta, James Yersh, Russell Wilson and Rachel Goldman; the appointment of Ernst & Young LLP as the company’s auditors; and the adoption of the company’s amended and restated omnibus incentive plan. Read more here.


StaffJune 27, 2022
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6min7260

Revive Therapeutics Ltd. (OTCQB: RVVTF) (CSE: RVV) gave an update last week on the company’s U.S. Food & Drug Administration (FDA) Phase 3 clinical trial  (NCT04504734) to evaluate the safety and efficacy of Bucillamine, an oral drug with anti-inflammatory and antiviral properties, in patients with mild to moderate COVID-19.

Following Revive receiving positive comments from the FDA in regards to the company’s request to determine and agree on the Study’s potential new primary efficacy endpoints and the company’s submission of a Data Access Plan (“DAP”) to the FDA, the FDA has accepted the DAP to allow for the unblinding of the pre-dose selection data. The company will now proceed to unblind the pre-dose selection data to potentially support the amended Study protocol with the new primary efficacy endpoints. The proposed new primary efficacy endpoints may include the rate of sustained clinical resolution of symptoms of COVID-19, which addresses the shift in COVID-19 clinical outcome observed over the course of the pandemic, and, therefore, to have more meaningful study endpoints for the FDA to consider for potential Emergency Use Authorization.

Despite the pandemic seemingly waning, the company believes that with the Omicron variant, including the BA.2 variant, being the dominant strain over the Delta variant, there is an urgent need to treat symptom resolutions in addition to preventing hospitalizations. Revive made sure to note that it is not making any express or implied claims that its product has the ability to eliminate or cure COVID-19 (SARS-2 Coronavirus) at this time.

Medical Mushrooms

According to a study, medicinal mushrooms have documented effects on different diseases, including infections and inflammatory disorders. “The related Basidiomycota Agaricus blazei Murill (AbM), Hericium erinaceus (HE), and Grifola frondosa (GF) have been shown to exert antimicrobial activity against viral agents, Gram‐positive and Gram‐negative bacteria, and parasites in vitro and in vivo. Since the mechanism is immunomodulatory and not antibiotical, the mushrooms should be active against multi‐drug resistant microbes as well. Moreover, since these Basidiomycota also have anti‐inflammatory properties, they may be suited for the treatment of the severe lung inflammation that often follows COVID‐19 infection.”
“An AbM‐based mushroom extract (Andosan), also containing HE and GF, has been shown to significantly reduce bacteraemia and increase survival in mice with pneumococcal sepsis, and to improve symptoms and quality of life in IBD patients via an anti‐inflammatory effect. Hence, such mushroom extracts could have prophylactic or therapeutic effect against the pneumonic superinfection and severe lung inflammation that often complicates COVID‐19 infection. Here, we review antimicrobial and anti‐inflammatory properties of AbM, HE and GF mushrooms, which could be used for the battle against COVID‐19.”

The Center for East-West Medicine, at the University of California Los Angeles (UCLA) applied to the US Food and Drug Administration (FDA) in April 2020 for approval to conduct 2 randomized phase 1 trials. According to the JAMA Network, the double-blind, placebo-controlled studies would evaluate the safety and feasibility of treating mild to moderate COVID-19 with either medicinal mushrooms, which have a long history as natural therapeutics for pulmonary disease, or a Chinese herb formulation that’s widely used there as a COVID-19 remedy. JAMA reported that the FDA ultimately sanctioned the MACH-19 (Mushrooms and Chinese Herbs for COVID-19) trials, which are now underway at UCLA and UCSD and are supported by the Krupp Endowed Fund. Meanwhile, a third MACH-19 trial is investigating the use of medicinal mushrooms as an adjuvant to COVID-19 vaccines.

“Researchers are currently conducting in vitro and animal studies with natural products to evaluate direct antiviral activity or to address COVID-19 sequelae,” D. Craig Hopp, PhD, deputy director of the Division of Extramural Research at the National Center for Complementary and Integrative Health (NCCIH), said in an interview. But the MACH-19 treatment trials are unique, he noted, because they’re evaluating natural products among humans with acute SARS-CoV-2 infection.”


StaffJune 23, 2022
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7min5330

The Daily Hit is a recap of the top cannabis business stories for June 23, 2022.

ON THE SITE

IGC Makes Progress on THC for Alzheimer’s

India Globalization Capital, Inc. (IGC) (NYSE: IGC) announces its financial results for the fiscal year ending March 31, 2022. IGC reported that its revenue was approximately $397 thousand and $898 thousand for Fiscal 2022 and Fiscal 2021, respectively. The net loss for Fiscal 2022 for IGC was approximately $15 million or $0.30 per share, compared to approximately $8.8 million or $0.21 per share for Fiscal 2021. Adjusting for approximately $5.3 million in one-time and non-cash expenses, the net loss is approximately $9.7 million in Fiscal 2022. Read more here.

Selling the Psuedo-Psychedelic Sizzle

Say you want a quick microdose of an uplifting substance this morning and decide to turn to one of a handful of companies promising a “magic” experience with their mushroom concoctions—such as Mudwtr. A little psilocybin buzz should do the trick, right? Oops… better look closer. Read more here.

Executive Spotlight: Dave Choulpek

Juva Life (OTC: JUVAF) is a life sciences research company with an immense background in cannabis, allowing the company to cultivate and to derive small molecule compounds that target inflammation in the human body. Currently Juva Life is working with Juva-019 and Juva-041, which are non-cannabinoid molecules found to be naturally occurring in the cannabis plant. Juva Life’s assets include one micro business, one cannabis cultivation facility and two cannabis delivery companies in California. Read more here.

IN OTHER NEWS

Khiron Life Sciences Corp.

Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), a global medical cannabis company throughout Latin America and Europe, announced the results of its 2022 Annual General and Special Meeting of shareholders held on June 23, 2022. Read more here.

Auxly Cannabis Group Inc.

Auxly Cannabis Group Inc. (TSX: XLY), a consumer packaged goods company in the cannabis products market, announced that it has amended and restated the unsecured convertible debentures in the capital of the company issued under its standby facility with an institutional investor, which was previously announced on April 28, 2020. Read more here.

Nabis Cannabis, Teamsters Local 630

Drivers and fleet maintenance workers at Nabis Cannabis have voted overwhelmingly to ratify their first contract with Teamsters Local 630. It is the first collective bargaining agreement at the rapidly-growing cannabis distribution company. “I’m incredibly proud of the tenacity and courage that was demonstrated by this group of workers,” said Lou Villalvazo, Local 630 Secretary-Treasurer. “What they have done at this company can serve as a model for successful organizing and bargaining throughout the California cannabis industry moving forward.” Read more here.

Item 9 Labs Corp.

Item 9 Labs Corp. (OTCQX: INLB) — a vertically integrated cannabis dispensary franchisor and operator announced today that its new 20,000 square-foot, state-of-the-art cultivation and lab facility in Pahrump, N.V. is nearing completion and expected to be fully operational by end of 2022. Read more here.

CannTrust Holdings Inc.

CannTrust Holdings Inc. (unlisted), minority investor in Phoena Holdings Inc. (formerly CannTrust Equity Inc.) today announced that it is seeking an order from the Ontario Superior Court of Justice extending the time for the company to call the next annual meeting of its shareholders. The company also provided an update concerning its board of directors’ review of strategic alternatives. Read more here.

CryoMass Technologies Inc.

CryoMass Technologies Inc. (OTCQX: CRYM) announced that CryoMass begins trading today on OTCQX under the symbol “CRYM.” Christian Noël, CryoMass CEO, stated, “We are pleased to reach this important milestone, as OTCQX is the highest tier of the OTC markets. Of more than 12,000 securities traded on the OTC Markets, only 644 (as of May 31, 2022) have met the requirements for trading on the OTCQX® Best Market. The upgrade to the OTCQX will increase CryoMass’s accessibility to U.S. investors and will allow our shareholders to trade more effectively. This also reflects our continued commitment to responsible corporate governance.” Read more here.

Akanda Corp.

Concerned shareholders of Akanda Corp. have today replaced a majority of the board of directors of the Corporation, with highly-qualified and motivated directors. The concerned shareholders of the corporation collectively own or control 16,556,779 common shares of the corporation (representing approximately 54.1% of the issued and outstanding common shares of Akanda), and yesterday passed a written resolution of the shareholders of the corporation pursuant to the provisions of the Business Corporations Act (Ontario) removing each of Louisa Mojela, Philip van den Berg, Charles Kié, Gila Jones, Gugu Dingaan and Bridget Baker as directors of the Corporation effective immediately. Read more here.


StaffJune 23, 2022
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7min6580

Juva Life (OTC: JUVAF) is a life sciences research company with an immense background in cannabis, allowing the company to cultivate and to derive small molecule compounds that target inflammation in the human body. Currently Juva Life is working with Juva-019 and Juva-041, which are non-cannabinoid molecules found to be naturally occurring in the cannabis plant. Juva Life’s assets include one micro business, one cannabis cultivation facility and two cannabis delivery companies in California. The company was founded by Doug Chloupek in 2018, with the ultimate goal of bringing together a hand-picked team of cannabis industry veterans and leading, highly-respected medical researchers to create rigorously-tested, consistent, quality products built on research and a retail system that fosters informed customers through education and science. 

Doug has an immense background in both medical and adult-use cannabis, and was the visionary, co-founder, and COO of BAS Research. BAS Research (BAS) was California’s first licensed medical cannabis manufacturing and research group, dedicated to developing breakthrough pharmaceutical-grade cannabis products. He is a strong believer that standardized dosing and research is the first step to confirming the effectiveness of medical cannabis. The pharmaceutical industry follows an existing set of processes, and takes many different pathways to achieve an ultimate goal. Juva Life is taking a chemical approach to research versus a biological one, and is using modern tools to identify potential answers. In short, cannabis is known to anecdotally reduce pain and inflammation – Juva Life’s goal is to identify how and why this works, and isolate the specific molecules responsible for positive pain management effects in humans. 

Full name: Doug Chloupek 

 

Title: Founder, CEO, and Chairman of the Board

 

Company: Juva Life

 

Years at current company: 4

 

Education profile: I took an atypical route – I graduated high school 2 years early, and college wasn’t for me. I worked hard as a young person, homeschooled myself and have been working a 40/hr week job since age 15. 

 

Most successful professional accomplishment before cannabis: 

Over the past 12 years, I have led and created seven successful cannabis businesses, including the operation of cannabis retail businesses for 9 of those years, cultivation businesses for 8 of those years, and manufacturing businesses for 6 of those years. Prior to joining the cannabis industry, I acquired an additional 12 years of experience in marketing, brand creation, and advertising. I had been in media sales for about a decade, launched an online advertising/marketing firm for attorneys back in 2005, and had an entertainment company booking entertainers for local venues. Unlocking the health benefits hidden in cannabis was the motivating and all-consuming factor to create Juva and has brought us to where we are today. 

Company Mission: 

The Company’s mission is to leverage its unique knowledge of the chemistry and anti-inflammatory properties contained within cannabis to develop safe and effective therapeutics. We believe there are unappreciated small molecules identified by Juva and found in the cannabis plant that hold the keys to regulating inflammation in the human body. Our team of scientists are doing the much-needed research to validate our findings using established pharmaceutical assays to prove their efficacy.

Company’s most successful achievement:  

The discoveries of proprietary non-cannabinoid molecules, JUVA-019 and JUVA-041.

Juva-019 is a molecule found and derived from cannabis. It is a non-cannabinoid molecule, which is a naturally occurring molecule that is different from THC and CBD, with no psychoactive effects. Juva Life’s research team discovered Juva-019 by screening the whole library of compounds in cannabis using standard pharmaceutical assays, looking for compounds that stood out for their anti-inflammatory properties. 

Juva-041 is unique in that it actually inhibits multiple cytokines, which are responsible for inflammation in the human body. Juva Life’s researchers expect Juva-041 to have a potentially broader application than Juva-019, and have identified a process for straightforward, inexpensive synthesis of this molecule, without having to cultivate cannabis.

Has the company raised any capital (yes or no)? If so, how much?:

Yes, $36 million to date

Any plans on raising capital in the future?

Yes

Most important company 5 year goal: 

Juva Life’s goal is to unlock the secret of cannabis’ relationship with inflammation and pain management. Our team’s deep research background brings together top experts across multiple disciplines to apply a level of science and rigor not historically seen in the cannabis industry. At the core of its research, Juva Life is embarking to discover why and how cannabis works, and who it works for. With the recent discoveries of JUVA-019 and JUVA-041, we believe we are well on track to accomplish this goal. 

 


StaffJune 23, 2022
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4min5530

India Globalization Capital, Inc. (IGC) (NYSE: IGC) announces its financial results for the fiscal year ending March 31, 2022. IGC reported that its revenue was approximately $397 thousand and $898 thousand for Fiscal 2022 and Fiscal 2021, respectively. The net loss for Fiscal 2022 for IGC was approximately $15 million or $0.30 per share, compared to approximately $8.8 million or $0.21 per share for Fiscal 2021. Adjusting for approximately $5.3 million in one-time and non-cash expenses, the net loss is approximately $9.7 million in Fiscal 2022.

In Fiscal 2022 and Fiscal 2021, revenue was primarily derived from the Life Sciences segment, which involved sales of in-house brands and alcohol-based hand sanitizers, among others. In Fiscal 2022, the company de-emphasized the manufacturing and sale of low-margin hand sanitizers and shifted its focus to higher-margin white label services and the sale of products under its brands. This increased the gross margin from 12% in Fiscal 2021 to 48% in Fiscal 2022. The infrastructure segment had lower revenue in Fiscal 2022 due to the continued impact of the COVID-19 pandemic.

The company has roughly $10 million in cash on hand. SG&A expenses increased by approximately $5.3 million or 68% to $13.2 million for Fiscal 2022, from approximately $7.9 million for Fiscal 2021. The increase is attributed to one-time expenses, which include law-suit settlement expenses of approximately $264 thousand; impairment of facility of $833 thousand; net realizable value (NRV) adjustment of $1.7 million for its hemp crop; approximately $475 thousand in provisions for advances paid; approximately $1.7 million in provisions against inventory that was stolen at our vendor’s facility; and an increase of approximately $1.3 million attributable to non-cash expenses. Adjusting for approximately $5.3 million in one-time and non-cash expenses, the SG&A for the fiscal year 2022 was lower year over year by approximately $500 thousand.

R&D

Research and Development expenses were attributed to the Life Sciences segment. The R&D expenses increased by approximately $1.4 million or 151% to $2.3 million in Fiscal 2022, from approximately $929 thousand for Fiscal 2021. The increase is attributed to the now completed Phase 1 clinical trial on Alzheimer’s. “We expect R&D expenses to increase with progression in Phase 2 trials on IGC-AD1 and pre-clinical trials on TGR-63.”

Alzheimer’s

IGC completed the first-in-human safety and tolerability trial on its tetrahydrocannabinol (THC) based investigational new drug IGC-AD1. During the trial, the company discovered positive signals for improving several neuropsychiatric symptoms including agitation in dementia associated with Alzheimer’s. “Based on these signals, we are initiating a larger efficacy trial to test IGC-AD1 as a symptom modifying agent, specifically on agitation in dementia due to Alzheimer’s disease.”

On June 7, 2022, the USPTO issued a patent (#11,351,152) to IGC titled “Method and Composition for Treating Seizures Disorders.” The patent relates to compositions and methods for treating multiple types of seizure disorders and epilepsy in humans and animals using a combination of cannabidiol (CBD) with other compounds. Subject to further research and study, the combination is intended to reduce side effects caused by hydantoin anticonvulsant drugs such as phenobarbital, by reducing the dosing of anticonvulsant drugs in humans, dogs, and cats.


StaffJune 22, 2022
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5min6220

The Daily Hit is a recap of the top cannabis business stories for June 22, 2022.

ON THE SITE

Supreme Court Just Says No

Two Supreme Courts rejected employee requests to have employers reimburse for medical cannabis costs. On Tuesday, the U.S. Supreme Court said it would not hear an appeal that pits the Controlled Substances Act (CSA) against a state workers’ compensation law requiring employers to reimburse workers for medical cannabis. Like many issues within the cannabis industry, there are competing and conflicting government positions. In this situation, the CSA says cannabis is federally illegal, while state law is saying employers need to reimburse employees for medical costs. Read more here.

Analysts Downgrade Scotts, Cuts Targets on Hydrofarm, GroGen

When Scotts Miracle-Gro (NYSE: SMG) first began telling shareholders that its hydroponic subsidiary Hawthorne was slowing in sales, it seemed like a temporary situation. That might not be the case. A new in-depth report by Wells Fargo analyst Chris Carey based on survey data collected by Cannabiz Media is depressing, to say the least. Reality bites. Carey’s response to the study has promoted him to downgrade shares of Scotts to Equal Weight and roping his price target to $85 (from $115). Read more here.

Greenlane Sells Off Assets to Generate Cash

Greenlane Holdings, Inc.  (NASDAQ: GNLN) has said it has a plan to generate more than $30 million in liquidity. Part of the company’s strategy to achieve this goal includes getting a loan to cover its working capital needs, selling the company’s headquarters building in Boca Raton Florida, and getting rid of non-sore and lower-margin inventory. Greenlane has been through a series of struggles since the company’s salad days of selling Juul vapes. Read more here.

IN OTHER NEWS

High Tide Inc.

High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), a retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, announced that it has closed a short-term debt financing from an arm’s length credit provider for CAD$5 million. The company has chosen to proceed with a small debt facility at this time as the company’s proposed non-dilutive credit facilities with ConnectFirst Credit Union for CAD$30 million (as previously announced on April 18, 2022) has been delayed until July 2022. Read more here.

Tilray Brands, Inc.

Tilray Brands, Inc. (NASDAQ: TLRY; TSX: TLRY), a global cannabis-lifestyle and consumer packaged goods company, welcomed the Luxembourg Ministry of Health Delegation to the Company’s European campus and facility located in Cantanhede, Portugal. Tilray’s EU-GMP-certified medical cannabis cultivation and manufacturing facility in Portugal provides patients in Luxembourg and across Europe, where permitted by law, with safe and reliable access to high-quality medical cannabis. Read more here.

Ultimate Sports, Inc.

Ultimate Sports, Inc. (OTC: USPS), a men’s health services provider, announces negotiations to acquire Sannabis S.A.S., a Colombian cannabis company. Sannabis, and affiliated companies, hold all four cannabis licenses: Seed Use, THC-Cultivation, Non-THC (Hemp)-Cultivation, and Fabrication/Export. Read more here.

Kiva Sales and Service, Jones Soda Co.

Jones Soda Co. (OTCQB: JSDA) (CSE: JSDA), a craft soda known for its unconventional flavors and user photo-submitted labels, today announced an exclusive partnership with Kiva Sales and Service, a cannabis industry sales and distribution platform, to launch its new line of cannabis-infused beverages, Mary Jones, into the California market. Read more here.

The Valens Company Inc., Coldhaus Distribution

The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS)), a manufacturer of branded cannabis products, today announced that it has secured an exclusive cannabis partnership with Coldhaus Distribution to provide integrated logistics solutions for Valens-branded cannabis products across Ontario, Alberta, and British Columbia. Read more here.


StaffJune 22, 2022
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3min5390

Two Supreme Courts rejected employee requests to have employers reimburse for medical cannabis costs. On Tuesday, the U.S. Supreme Court said it would not hear an appeal that pits the Controlled Substances Act (CSA) against a state workers’ compensation law requiring employers to reimburse workers for medical cannabis. Like many issues within the cannabis industry, there are competing and conflicting government positions. In this situation, the CSA says cannabis is federally illegal, while state law is saying employers need to reimburse employees for medical costs.

With the Supreme Court declining to take on the case, it reverts back to a Minnesota Supreme Court decision from October that overturned a workers’ compensation court decision that ordered Mendota Heights Dental Center and its insurer, Hartford Insurance Group, to pay for medicinal cannabis that petitioner Susan K. Musta was prescribed for an on-the-job neck injury. The appeal to change the decision back fell on deaf ears as the Court declined to hear. Both petitions asked the justices to weigh in on tensions between federal and state cannabis policies as they touched on medical marijuana patients’ right to be reimbursed.

In May, the Department of Justice (DOJ) weighed in on the Musta case and told the Supreme Court that it shouldn’t take up the case. In it’s brief, it wrote, “Minnesota’s Cannabis Act does not “require the medical assistance and MinnesotaCare programs”— state-run health programs for low-income patients—“to reimburse an enrollee or a provider for costs associated with the medical use of cannabis.”

The DOJ also noted in its brief that if the federally illegal substance of cannabis was forced upon companies to reimburse for the use, then companies could be forced to reimburse for other illegal substances like LSD. “A State could likewise compel private parties to provide reimbursements for services that are banned by federal law.”

The brief went on to say, “Minnesota’s Cannabis Act itself exempts state-run health programs for low-income patients from any requirement “to reimburse an enrollee or a provider for costs associated with the medical use of cannabis.” Minn. Stat. § 152.23(b) (2021). That exclusion—which by definition affects patients with the greatest financial needs—avoids placing
state officials who implement those programs into conflict with federal law. The conflict with the CSA remains, however, when Minnesota law compels private employers to subsidize the same federal crimes.”

The government seemed to acknowledge to conflict between the CSA and various state laws but clearly wants legislators to fix the problem versus the courts.

 


StaffJune 21, 2022
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10min7490

The Daily Hit is a recap of the top cannabis business stories for June 21, 2022.

ON THE SITE

Juva Life Gets $11 Million in Pelorus Equity Deal

Privately owned Pelorus Equity Group has closed an $11.8 million financing with Juva Life Inc. (OTC: JUVAF), a life science company with pharmaceutical research and development and consumer-facing operations in cannabis production and distribution. Pelorus said the primary purpose of the financing was to finance the exercise of the tenant’s purchase option on its recently completed Stockton cultivation facility, as well as provide working capital and R&D funding. Read more here.

Prices Falling for Cannabis Companies

Once upon a time, owning a cannabis company seemed like a sure bet. Even if you couldn’t make the business work, there was always an option to sell it. So many people have been desperate to get into the cannabis industry that they were willing to pay just about any price. In other words premium prices regardless of whether the business warranted it or not. Now as the bear market in stocks seems to have some staying power and competition in some cannabis markets is heating up, prices for these businesses is dropping. Read more here.

High Times Sells LGBTQ Titles

High Times has sold its LGBTQ publications to Equal Entertainment for an undisclosed amount. The publications include Out.com/ Magazine, Advocate.com/ Magazine, Out Traveler Magazine, Plus Magazine, and Pride.com and given a new name for the company Equal Pride. According to the press release, “The acquisition returns the company to LBGTQ+ majority ownership and creates the largest LGBTQ+ – owned media, digital, TV, and entertainment company in the country with the majority of Equal Pride employees also identifying as LGBTQ+, women, and/or people of color.” Read more here.

The Bulls Are Running in Psychedelic Stocks

The stock market has been tough over the last month, as has most of the U.S. economy. The Federal Reserve raised interest rates by 0.75 percent on Wednesday, June 15, and that reduces the amount of money in the economy. Besides mortgages, rising interest rates impact the stock and bond markets, credit cards, personal loans, student loans, auto loans, and business loans according to Forbes. It’s the third hike this year and the largest since 1994. The move is aimed at countering the fastest pace of inflation in over 40 years. Another rate hike could come in July, according to Fed Chairman Jerome Powell. Read more here.

IN OTHER NEWS

Cronos Group Inc., Ginko Bioworks

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), a global cannabinoid company, and Ginkgo Bioworks (NYSE: DNA), a horizontal platform for cell programming, today announced the achievement of the third target productivity milestone in their partnership to produce eight cultured cannabinoids. Using Ginkgo’s platform for organism design and development, Cronos has successfully achieved the productivity target for tetrahydrocannabivarin (THCV), a cannabinoid hypothesized to reduce the appetite-enhancing property of THC. Access to additional rare cannabinoids will support Cronos’ innovation pipeline and commercialization strategy. Read more here.

BioLumic Inc.

BioLumic Inc. today announced the closing of a $13.5-million Series B funding round that will be used to accelerate commercial growth for its cutting-edge, patented agricultural technology that harnesses the power of ultraviolet light to improve plant productivity. The funding round is led by OurCrowd and is joined by Finistere Ventures, Icehouse Ventures, Rabo Ventures, Entourage Effect Capital, Arcview Ventures Seed Fund, Flatiron Venture Partners, RIV Capital, Virtu Capital, Bravos Capital, Privthi, NZ Booster Fund, Norwind Capital, MIG Nominee No 1 Limited, Aspire NZ Seed Fund and others. Read more here.

Rubicon Organics Inc.

Pierre Lassonde, of 45 Hazelton Ave, Toronto, Ontario, M5R 2E3, today announced that on June 20, 2022, Mr. Lassonde sold common shares of Rubicon Organics Inc., a company with a head office at 505-744 West Hastings Street, Vancouver, BC, V6C 1A5, in an amount of 1,000,000 Common Shares. The Common Shares were sold to the Chair of the Board of Directors of Rubicon, Julie Lassonde, and occurred through the facilities of the TSX Venture Exchange at a price of C$0.77 per Common Share, for aggregate consideration of C$770,000. Read more here.

Body and Mind Inc.

Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ),  a multi-state U.S. cannabis operator, reported its financial results for the third fiscal quarter ended April 30, 2022. Read more here.

In related news: Body and Mind Inc., a multi-state U.S. cannabis operator, is pleased to provide an update on the first amendment to the Seaside dispensary purchase agreement. The company, through its wholly owned subsidiary, DEP Nevada, Inc., executed definitive agreements to purchase the Reef dispensary in Seaside California on November 30, 2021 and has been operating the dispensary since December 1st, 2021. Read more here.

CEA Industries Inc., Greene Brothers Farm

CEA Industries Inc. (NASDAQ: CEAD, CEADW) subsidiary, Surna Cultivation Technologies LLC, a leader in controlled environment agriculture (CEA) systems engineering and technologies, today announced it has entered into a letter of intent to provide products and mechanical engineering services over five phases with Greene Brothers Farm, Inc., a family owned and operated farm that is developing a 26-acre site exclusively for indoor cannabis cultivation. CEA Industries anticipates contract revenues of approximately $10 million over an estimated two to three-year period. The initial contract, valued at $1.2 million, is for the first phase of products and services and is planned to be completed by early Q4 2022. Read more here.

Intercure Ltd., Cookies

Intercure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) announced today the opening of the first flagship Cookies store in Austria, located in the Neubau district of Vienna. The flagship location offers Cookies’ unique CBD menu, available for the first time in Europe, as well as clothing and life-style products. In the future, as regulations are evolving, pharmaceutical grade medical cannabis will be available for Austrian patients, including Cookies EU-GMP THC products. Read more here.

Captor Capital Corp.

Captor Capital Corp. (CSE: CPTR; FRANKFURT: NMVA; STUTTGART: NMVA), announced today that the board of directors has initiated a process to identify, examine and pursue strategic alternatives to the company’s current business. Brady Cobb, a cannabis industry veteran, has been named as the interim chairman of the board of directors, effective July 1, 2022, to oversee the leadership of the company and the Strategic Review process with an eye towards maximizing operational efficiencies and charting the most accretive path forward to maximize shareholder value. Read more here.

AIkido Pharma Inc.

Shalom Auerbach, a significant stockholder of AIkido Pharma Inc. (NASDAQ: AIKI) owning approximately 3.8% of its common stock, today issued the following letter to stockholders of AIkido Pharma Inc. Read more here.


StaffJune 21, 2022
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Harvest Health or rather Trulieve since it bought Harvest Health must be heaving a sigh of relief that it’s High Times on the hook for the rent at Geary St. in San Francisco. Before it was acquired Harvest Health had tried to quickly jump into the San Francisco market by signing numerous agreements. One of them was with Alexis Bronson from the Have A Heart 2 CA LLC  as a social equity licensee for a dispensary at a prime shopping spot on the famous Geary Street.

Touted at the time as snagging a spot in the luxury shopping street, neighbor Chanel boutique protested. This was early 2020 and right before the pandemic struck. However, Harvest Health didn’t waste much time on some of the assets including 152 Geary and flipped some of its properties to High Times who was anxious to diversify into dispensaries. Soon thereafter, COVID took hold and San Francisco’s downtown has yet to recover. The problem with retail rental contracts is that many of them can’t be broken with covid blame. Something High Times has learned the hard way.

Cannabis Law Report wrote that on May 31, a judge found that Vijaya Properties (High Times) owes the building owner $4.9 million in back rent. The dispensary was never opened and to add insult to injury, the building is only worth $20 million. The landlord Thor Equities actually wanted $5.9 million, but the judge said that since the landlord basically took the $1 million in a credit facility that was somewhat like a deposit, that money would be subtracted. 

The judge noted that a tenant can get out of a lease if another tenant comes along. The landlord could ask the current tenant to leave and replace them and in effect take back possession. But 152 Geary hasn’t done so and so High Times is stuck. Geary St has experienced some scary smash and grab robberies this past year that were so frightening that police were blocking the street from car traffic as closing hours came near. So it’s no surprise that with crime and a depleted downtown along with a moribund retail scene the landlord probably couldn’t find a tenant willing to pay that much. 

There was also nothing in the rental contract that gave High Times an “out” in case it never opened the dispensary.

The trial had no jury and was handled remotely. High Times or Vijaya Properties as it’s listed in the case did not dispute the money owed. Side note – Vijaya is a botanica plant with medicinal properties and shares a lineage with cannabis.


StaffJune 21, 2022
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Privately owned Pelorus Equity Group has closed an $11.8 million financing with Juva Life Inc. (OTC: JUVAF), a life science company with pharmaceutical research and development and consumer-facing operations in cannabis production and distribution. Pelorus said the primary purpose of the financing was to finance the exercise of the tenant’s purchase option on its recently completed Stockton cultivation facility, as well as provide working capital and R&D funding. The facility was recently completed at a cost of $17 million. Juva also said it plans to use a portion of the funds to further its clinical research development programs on Juva-019 and Juva-041, novel compounds targeting the treatment of inflammation.
“We’re thrilled to fund Juva to acquire its Stockton, California, facility,” said Pelorus Equity Group CEO and Manager of the Pelorus Fund Dan Leimel. “In addition to advancing Juva’s research on its two compounds, this compelling transaction will support Juva’s development of products derived from cannabis that offer evidence-based therapeutics for the treatment of many challenging health conditions. As we continue to expand our assets under management, we look forward to continuing to provide leaders in the cannabis ecosystem with flexible capital markets solutions that meet the complex deal structures of large, mid-sized and small operators.”
Juva was founded by pioneers in the science and business of cannabis and guided by a team of highly-acclaimed medical professionals. The company leverages revenue derived from its retail operations to advance its consumer and clinical development efforts of Juva-019 and Juva-041, as well as other potentially valuable non-cannabinoid bioactives with significant consumer and pharma products applications. In April, Juva Retail RWC Inc was granted a license to operate a retail cannabis storefront in Redwood City, California, at 2301 Broadway. Juva was granted one of only four approvals allowing storefront retail cannabis businesses in commercial and mixed-use zones, following a rigorous and highly competitive application process.
“I am extremely pleased to close this round of debt financing, especially given the recent distressed capital markets and economic conditions,” said Juva CEO and Founder Doug Chloupek. “I believe it is a testament to the excitement around Juva’s cannabis operations as well as our clinical research initiatives. As our cannabis operations continue to grow and generate revenue, it was imperative that we secure our real estate holdings while advancing our pharmaceutical programs. This financing allows us to accomplish both of these goals, while retaining significant equity in our Stockton real estate asset. Additionally, the financing will also provide us with the capital needed to finish construction on our downtown Redwood City retail store which, upon completion, will create a new revenue stream for Juva.”

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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