Business Archives - Green Market Report

StaffSeptember 27, 2021
daily-hit.jpg?fit=700%2C394&ssl=1

6min2000

It’s time for your Daily Hit of cannabis financial news for September 27, 2021.

On The Site

Aurora

After delaying its earnings announcement, Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) released its financial results for the fourth quarter and full-year fiscal 2021 ending June 30, 2021. Aurora reported that its revenues in the quarter fell 20% in the quarter to $54.8 million from last year’s $68.4 million for the same time period. Revenue also dropped sequentially from the third quarter’s $55.1 million. The amount of kilograms sold during the quarter fell 32% to 11,346 from last year’s 16,748.

The net loss for the quarter was a whopping $133 million, which is down from the third quarter’s net loss of $160 million and last year’s eye-popping $1.8 billion for the same time period. For the full year, Aurora reported a net loss of $693 million versus 2020’s net loss of $3.2 billion. Aurora said it has identified cash savings of $60 million to $80 million and said it expects to deliver $30 million to $40 million of annualized cash savings within the next year, and the remainder by the end of the second fiscal quarter 2023. Aurora said that its consumer cannabis net revenue was $19.5 million ($20.2 million excluding provisions), a 45% decrease from $35.3 million ($37.1 million excluding provisions) in the prior year.

Delix Therapeutics

Delix Therapeutics closed on a $70 million Series A financing round.  The company said it expects to use the money to advance two lead candidates through Phase 1 clinical trials, further expand its drug discovery platform of novel neuroplasticity-promoting compounds known as psychoplastogens, and expand its team.

RWB

Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF)reported that it has completed a refinancing of an aggregate principal amount of $18.6 million debentures (plus accrued interest to September 1, 2021) previously issued to an arm’s-length investor. The Prior Debentures were replaced with a new debenture in the principal amount of $19.3million.

Audacious

Australis Capital Inc., operating as Audacious (CSE: AUSA) (OTC: AUSAF)  announced that it has retained DelMorgan & Co., an internationally recognized investment banking firm, to assist it with its $15 million capital raise.

In Other News

Perfect Union

Sacramento-based Perfect Union recently reached its latest funding round goal of $15 million to bolster its expansion efforts. Now, the cannabis company is looking to raise at least double that in its next funding round in 2022. David Spradlin, CEO of Perfect Union, disclosed last October that the company’s investment arm, MWG Holdings Group Inc., was planning a $15 million equity offering. According to a recent filing with the Securities and Exchange Commission, the company raised the funds through 16 investors.

 With the closing of the Series B round, Spradlin told the Business Journal that Perfect Union will have raised around $30 million since it held its first funding round in 2017. The latest funds, he said, will continue to help the company finish infrastructure projects, bolster its cultivation efforts, establish a commercial kitchen where it plans to develop new edible lines, and expand more into distribution.

Flower One

Flower One Holdings Inc.  (CSE: FONE) (OTCQX: FLOOF) has closed the first tranche of its non-brokered private placement (the “Private Placement”), raising aggregate gross proceeds of $5M.


Debra BorchardtSeptember 27, 2021
aurora2.png?fit=852%2C316&ssl=1

4min2360

After delaying its earnings announcement, Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) released its financial results for the fourth quarter and full-year fiscal 2021 ending June 30, 2021. Aurora reported that its revenues in the quarter fell 20% in the quarter to $54.8 million from last year’s $68.4 million for the same time period. Revenue also dropped sequentially from the third quarter’s $55.1 million. The amount of kilograms sold during the quarter fell 32% to 11,346 from last year’s 16,748.

The net loss for the quarter was a whopping $133 million, which is down from the third quarter’s net loss of $160 million and last year’s eye-popping $1.8 billion for the same time period. For the full year, Aurora reported a net loss of $693 million versus 2020’s net loss of $3.2 billion. Aurora said it has identified cash savings of $60 million to $80 million and said it expects to deliver $30 million to $40 million of annualized cash savings within the next year, and the remainder by the end of the second fiscal quarter 2023.

Aurora said that its consumer cannabis net revenue was $19.5 million ($20.2 million excluding provisions), a 45% decrease from $35.3 million ($37.1 million excluding provisions) in the prior year. The company said this was due to a reduction in orders from the Provinces in response to slower consumer demand, reflecting the impact of lockdown restrictions related to COVID-19. “Sequentially, consumer cannabis net revenue increased 8% over the prior quarter mainly due to completion of the transition of our fixed sales force to Great North and a $2.5 million reduction in actual net returns, price adjustments, and provisions as the company completed its product swap initiative to replace the low-quality product with higher potency product at the provinces.

“We are very pleased with our strategic and financial progress in growing our high-margin medical revenue, rationalizing expenses, strengthening our balance sheet, and reducing our cash burn during fiscal year 2021. Given ongoing challenges in the Canadian adult recreational market, our broad diversification across domestic medical, international medical, and adult recreational segments provides us with underlying strength, stability, and growth opportunities in an evolving industry for global cannabinoids. Additionally, our enviable leadership position as the #1 Canadian LP in global medical cannabis by revenue on a trailing twelve-month basis, supported by regulatory and compliance expertise, is a tailwind that we expect to enable us to ultimately expand into global adult recreational as medical regimes evolve” stated Miguel Martin, Chief Executive Officer of Aurora Cannabis.

“We further believe our Canadian adult recreational segment is poised for recovery due to our product portfolio enhancements coupled with an acceleration of new store openings and rising consumer demand. We have positioned ourselves for long-term success by delivering further improvement in our industry-leading Adjusted gross margin and substantially narrowing our Adjusted EBITDA loss compared to the year-ago period. With annual cost savings of approximately $60 to $80 million across selling, general, and administrative (“SG&A”), production cost, facility and logistic expenses, we have a clear pathway to achieve Adjusted EBITDA profitability. Importantly, our considerable cash balance of $440.9 million, substantial improvement in working capital, and strong balance sheet support our organic growth and can be utilized for opportunistic M&A, particularly in the U.S,” he concluded.

StaffSeptember 27, 2021
money-2.jpg?fit=960%2C640&ssl=1

4min2540

Cannabis companies are continuing to make money moves in this capital hungry industry. This week is kicking off with two companies making announcements.

RWB

Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF)reported that it has completed a refinancing of an aggregate principal amount of $18.6 million debentures (plus accrued interest to September 1, 2021) previously issued to an arm’s-length investor . The Prior Debentures were replaced with a new debenture in the principal amount of $19.3million. The New Debenture is unsecured, bears interest at the rate of 10% per annum, which accrues and is payable on the maturity date of January 21, 2023. The New Debenture is payable in full on a change of control.

Audacious

Australis Capital Inc., operating as Audacious (CSE: AUSA) (OTC: AUSAF)  announced that it has retained DelMorgan & Co., an internationally recognized investment banking firm, to assist it with its $15 million capital raise.

Terry BoothAUSA CEO, said, “DelMorgan is a highly regarded name with broad access to institutional investors active in the cannabis industry, our target audience for this raise. The funds will largely go to initiatives that we believe will enable us further to accelerate growth. We have a number of potential transactions and partnerships on our radar screen. These funds will help to capitalize on these opportunities and take AUSA to the next level. We look forward to working with the DelMorgan team on this fund raise and potentially other initiatives.”

Industry Capital

According to Viridian Capital as of the week ending September 17, the total capital raised year-to-date in 2021 of $9.36B is now approximately $1.1B lower than the same period in 2019 (the previous peak year); however, U.S. capital raises are far more robust. “U.S. equity raises are up by $448M (12%), and U.S. debt raises are up by $748M (76%) compared to 2019. Canadian raises are off sharply, with equity raises down 49% and debt down 12%,” said Viridian.

On September 15, 2021, Glass House Brands Inc. (NEO: GLAS.A.U)(OTCQX: GLASF) closed its acquisition of a 5.5 million square foot greenhouse facility in Southern California. That deal was valued at $233 million or $158 million without earnouts. It was comprised of $93 million upfront cash, $65 million in stock (6.5 million shares valued at $10/ share), $75 million in earn-outs (based on performance for the 12 months commencing 30 months after CAPEX is completed at the facility). The upfront cash consideration was reduced from $118 million to $93 million, preserving an additional $25 million in funds for buildout.

On September 17, 2021, Halo Collective Inc.  (NEO: HALO)(OTCQB: HCANF) closed an at-the-market offering raising approximately $15.6M between May 4, 2021, and September 17, 2021.


StaffSeptember 27, 2021
psychedelic.jpg?fit=960%2C640&ssl=1

5min3170

Delix Therapeutics closed on a $70 million Series A financing round.  The company said it expects to use the money to advance two lead candidates through Phase 1 clinical trials, further expand its drug discovery platform of novel neuroplasticity-promoting compounds known as psychoplastogens, and expand its team.

“We appreciate the overwhelming support from new and early investors alike, and continue to attract top neuroscience, chemistry, and biotech talent as we pursue a unique pathway toward treating – and potentially healing – neuropsychiatric conditions in a new way, at scale,” said Mark Rus, Delix Therapeutics CEO. “We’ve made tremendous progress towards developing efficacious and easily manufactured compounds that have the potential to deliver safe, fast-acting, FDA-approved treatments to help patients in need.”

Delix Therapeutics was co-founded by Nick Haft & David E. Olson and was built upon the discovery of Dr. Olson, together with his team at the University of California, Davis, that non-hallucinogenic psychoplastogens are capable of producing sustained therapeutic effects. Olson’s research and Delix’s discoveries have been widely published in Cell, Nature, Molecular Psychiatry, Cell Reports, and other leading peer-reviewed scientific publications. Delix has produced nearly 1,000 novel compounds to date, with several potential clinical development candidates identified. Delix said that its improved safety profile, non-hallucinatory efficacy, and simplified manufacturing process of its psychoplastogens make its novel compounds highly scalable and suitable for early use in patients. DLX-1 and DLX-7, the first two development candidates to emerge from Delix, are currently undergoing pre-IND safety and toxicology studies to enable clinical trials to begin in 2022.

Senior Partner of ARTIS Ventures and Delix Board Member Vasudev Bailey said, “Delix is at the forefront of neuroscience with a growing platform of novel compounds, a great team, and a novel approach. Delix has the potential to advance our understanding of neuroplasticity, a core component of psychedelics, and its ability to heal. Through its platform, we see a significant opportunity for Delix to develop next generation therapies, with strong IP protection and the potential to positively impact a range of neuropsychiatric and neurodegenerative conditions.”

Andrew Levin, Managing Director at RA Capital Management, added, “The healthcare system is in serious need of new and improved neuropsychiatric treatments that are scalable and more accessible than first- or second-generation psychedelics. We have been looking for an optimized scientific approach to achieve this, and believe that Delix’s team, therapeutic strategy, and early lead candidates are on the critical path.”

The round was led by ARTIS Ventures, RA Capital Management, and founding investor OMX Ventures, with participation from a diverse syndicate of life sciences and psychedelic investment funds. Additional investment funds participating in the round include Apeiron, Bail Capital, Casa Verde Capital, Dolby Family Ventures, Negev Capital, Noetic Fund, Ocama Partners, Palo Santo, Presight Capital, PsyMed Ventures, R2, Re.Mind Capital, Saya Bio, Vertical Venture Partners, WPSS, and other leading family investment funds.

“This funding is an important step in transforming our years of scientific research and discoveries into innovative treatments for patients in need,” said Professor David E. Olson, co-founder and Chief Innovation Officer of Delix Therapeutics. “Our preclinical data to-date suggest that our compounds are unlike anything currently in psychiatrists’ arsenals and have the potential to treat a wide range of conditions. Because the Delix platform directly reverses cortical atrophy — the root cause of many brain disorders — we are optimistic that our treasure trove of novel compounds will yield many safe and scalable treatments for improving mental health.”


Video StaffSeptember 24, 2021

4min8412

First big news. Green Market Report is being acquired by Crain Communications. We are excited to join the team and expect to grow and expand. I will continue as Executive Editor and we will keep bringing you the quality journalism you’ve come to expect.

And speaking of acquisitions Michigan-based SKYMINT, is buying 3Fifteen Cannabis and also closing its $70 million Senior Secured Term Loan from Tropics LP, an affiliate of SunStream Bancorp, a joint venture sponsored by Sundial Growers and its $8 million equity investment from Merida Capital Holdings. The acquisition will bring Skymint’s workforce to 730 employees and a combined retail portfolio of 27 locations totaling 101,000 square feet, with an additional 18+in the 2021-2022 pipeline.

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) paid $1.35 million for a property in Missouri and entered into a long-term lease with CPC of Missouri – Smithville, LLC (CPC), a subsidiary of Calyx Peak, Inc. (Calyx). CPC is expected to construct approximately 83,000 square feet of industrial space at the property, for which IIP has agreed to provide reimbursement of up to $26.72 million. 

Stem Holdings, Inc., also known as Driven by Stem (OTCQX: STMH) (CSE: STEM), is buying an Oregon-based extraction company called Artifact Extracts and two dispensaries. The deal is valued at $2.9 million 

The (SEC)  filed charges against three individuals and one issuer on a crowdfunding scheme for two cannabis companies that raised $2 million. The money was supposed to be used to buy and invest in cannabis properties, but no money was ever used for those purposes. Instead, the money was siphoned off for personal use. In addition to that, the SEC also charged the registered crowdfunding portal, TruCrowd, and its CEO Vincent Petrescu, who placed the offerings on the portal’s platform.

This week Stifel analysts issued a huge report updating investors on their outlook for the cannabis industry. The group lowered estimates and price targets on several companies. They also noted they have a negative outlook on the Canadian cannabis industry and Canopy Growth in particular. With regards to the U.S. market, the analysts don’t believe the current administration will change the legality of the industry but believe this is actually a positive thing.


Debra BorchardtSeptember 23, 2021
MedMen9.jpg?fit=1200%2C675&ssl=1

3min5530

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) released its consolidated financial results for its fourth quarter of 2021 and for the fiscal year ending June 26, 2021.  MedMen had revenue of $42 million for the fourth quarter, up 55.4% year-over-year and up 18.5% from the previous quarter. Still, the company reported a net loss of $46.2 million. This greatly increased from a net loss of $9.7 million in the previous quarter, which the prior quarter included a $32.7 million tax provision benefit.

For the full year, MedMen reported revenue of $145 million across MedMen’s continuing operations in California, Nevada, Illinois, Arizona and Florida. This declined 6.6% from the prior year, reflecting the impact of COVID-19, particularly during the first half of the fiscal year and in the Las Vegas and California markets. MedMen also delivered a net loss of $157.6 million for fiscal year 2021 versus a net loss of $526.5 million in the previous year, which prior year included an impairment charge of $246.7 million.

“The past quarter was pivotal for MedMen, defined by increased sales and EBITDA profitability at our retail stores, as well as our cultivation and manufacturing facilities,” said Tom Lynch, Chairman and Chief Executive Officer of MedMen. “We set a new record for quarterly revenue at MedMen, driven by broad-based increases in traffic and frequency of transactions across nearly all of our retail locations. Strength in California accelerated during the quarter, with revenue up 24.4% sequentially. Additionally, our improved operating results have helped us shore up our balance sheet and attract strong partners in Tilray and Serruya. As previously announced, we amended the terms of our secured debt to extend the maturity to 2028, reduced restrictive covenants and eliminated cash debt service requirements. Additionally, we added $100.0 million of new capital subsequent to the end of the fourth quarter via private placement.”

At the end of June, MedMen only had cash and cash equivalents of $11.9 million. After the quarter ended, MedMen announced that investors, led by Serruya Private Equity, purchased $100.0 million of units, which consisted of 416,666,640 Class B Subordinate Voting Shares of MedMen and five-year warrants to purchase 104,166,660. Proceeds from the private placement will allow MedMen to expand its operations in key markets such as California, Florida, Illinois, Arizona and Massachusetts, and identify and accelerate further growth opportunities across the United States.

Lynch added, “Over the next several quarters, we plan to both accelerate our growth and improve EBITDA profitability as we leverage our national brand recognition into opening new stores in Florida, California, Massachusetts, Arizona and Illinois.”


StaffSeptember 23, 2021
cropped-favicon.png?fit=512%2C512&ssl=1

3min11040

Crain Communications has acquired the cannabis financial news website Green Market Report. Green Market Report was launched in 2017 by co-founders Debra Borchardt, a  financial journalist and former Wall Street executive, Cynthia Salarizadeh, a seasoned public relations expert and legal cannabis industry insider, and Vince Pitetti the co-founder of CrowdFund Connect. The acquisition will be finalized on Sept. 30, 2021.  

“We are excited to add Green Market Report to our now 21-brand portfolio,” said KC Crain, president, and CEO of Crain  Communications. “They focus on the financial, business, and economic side of the cannabis industry, so it’s a natural fit  with our other business brands.”  

Green Market Report, which includes a network of freelance journalists and garners 150,000 monthly page views, is led by Borchardt and is located in New York.  GMR won a 2020 Gold Stevie Award for Website of the Year and is a finalist this year for the Folio Magazine B2B Website Award. 

“Crain is one of the highest quality business news organizations in the country,” said Borchardt, CEO and co-founder of  Green Market Report. “Their team, resources, and respected journalism will make the perfect partner as Green Market  Report continues into the future. The combination of Crain’s experience and Green Market Report’s expertise will turn  us into a leader in the industry, and I’m personally excited to be a part of that growth.” Borchardt will continue to oversee GMR as the Executive Editor. In 2020, she was awarded a Silver Stevie Award for Female Executive of the Year – Business Services. 

“Remaining a trustworthy brand as a media company while trying to profit is a challenge in today’s environment,” said co-founder Cynthia Salarizadeh. “We kept a lean operation that remained unbiased against all odds. Crain’s is one of the most respected business media publishers in the world. Now, Green Market Report will grow to become everything it was envisioned to be with all of the resources necessary for success, and we could not be more proud that it is with Crain Communications.”

This deal comes two years after Crain’s acquisition of GenomeWeb — an online news organization covering trends in  genome sequencing — in 2019, both contributing to the company’s overarching goal of portfolio diversification. 

Green Market Report will join Crain Communication’s family of brands that spans across 10 offices and includes 650+  employees, with headquarters in Detroit and additional main offices in Chicago and New York.  


StaffSeptember 23, 2021
cure.jpg?fit=480%2C320&ssl=1

4min6730

Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) is buying Bay, LLC better known as Cure Pennsylvania in a deal valued at $90 million. The cash and stock acquisition is expected to close in the fourth quarter. The acquisition includes three operational Cure Penn dispensaries in Lancaster, Phoenixville, and Philadelphia. Cresco noted that the three new stores would be incremental and complementary to Cresco Labs’ four existing Sunnyside dispensaries in Pennsylvania

“As we implement localization strategies tailored to state level dynamics, this Transaction with Cure Penn is expected to expand our retail footprint in Pennsylvania, increase profitability, and strengthen our wholesale leadership position in the state. We’re thrilled to continue executing our playbook of achieving depth in strategic markets via rigorous capital allocation,” said Charlie Bachtell, CEO, and Co-Founder of Cresco Labs. “The Cure Penn team has developed a high-performing retail platform across three dispensaries that sets up another immediately accretive acquisition for Cresco Labs. We’ve proven our ability to drive incremental top and bottom-line growth from the implementation of Sunnyside’s best-in-class operating model, and we look forward to growing our house of brands which are already among the most sought after by patients in Pennsylvania.”

Cure Cannabis also has locations in Colorado and Oklahoma, but the group originated in Colorado. It was also one of the early licensees in the state of Pennsylvania.

Expansion Moves

Just last month Cresco Labs closed on its acquisition of vertically integrated Cultivate which operates three cannabis dispensaries in Leicester, Worcester, and Framingham Massachusetts. the deal included approximately 42,000 square feet of active flowering canopy, bringing combined canopy in-state to approximately 64,000 square feet. The three dispensaries bring the combined retail storefronts in-state to four. Concurrent with closing, the company’s Fall River retail location transitioned to medical sales only.

“The closing today constitutes another important step for Cresco Labs as we deepen our presence in large, attractive states like Massachusetts and increasingly tailor and strengthen our state-level strategies to optimize growth and profitability. Expanding operations in the most strategic U.S. cannabis markets is at the heart of our growth strategy and we’re thrilled to have the opportunity to show what can be achieved through a maximized footprint in Massachusetts,” said Charlie Bachtell, CEO and Co-Founder of Cresco Labs. “We have been thoroughly impressed with the Cultivate team and the quality of their operations. We look forward to a productive and efficient integration process to carry their historical strong momentum into the fourth quarter and beyond.”

 


Julie AitchesonSeptember 23, 2021
shutterstock_1330668950.jpg?fit=960%2C496&ssl=1

4min11380

The power of the social media influencer has evolved from a curiosity of internet culture to a fixture of the modern-day marketplace, and one that brands across sectors ignore at their peril. Brands that are having their social media pages deleted for content violations are now relying on influencers to help market their products, and cannabis brands are no exception. Instagram, which is owned by Facebook (NASDAQ: FB), in particular, has a low tolerance for the marijuana industry, freely deactivating or restricting accounts dedicated to cannabis content where there has been a perceived breach of terms of service or user complaints. But on Instagram perhaps more than anywhere else online, the influencer reigns supreme—a reality that is helping to keep marijuana companies in the social media spotlight.

Over the past year, brands like Canndescent, Papa & Barkley, Hervé, and cannabis subscription box service Nugg Club have utilized influencers to promote their products, to great success. Nugg Club in particular has worked with over 1200 influencers since July 2020, and 700 influencers so far in 2021. Cannabis companies are tapping influencers from a range of demographics, including mommy bloggers, eccentric performers like Kimmy Tan, and food bloggers who are a good match for their brands in order to flog their products. Consumers are watching, and spending, accordingly. Influencers have a ready-made platform and attentive audience, with recent studies showing that social media influencers have 16 times higher engagement rates than paid media and media-owned alternatives. Social media sites tend to be more lenient with individual content, which makes influencers an ideal adaptation to online regulations around promoting cannabis.

With a billion monthly users, Instagram holds a lot of marketing potential for companies, as well as the power to deflate a campaign before it truly begins. Instagram is a major pipeline of information and communication for consumers, and when it closes that pipeline down due to brands attempting to sell or promote the sale of drugs on their pages, the disruption can be devastating. Cannabis companies are permitted to have a presence on the platform in order to raise awareness or talk about cannabis-related issues like legalization, but this can be a slippery slope towards inducing the sale of cannabis, linking to e-commerce sites that sell it, or baldly marketing products. These, at least on Instagram, are major no-no’s. 

Once an account is deleted it can be reinstated under certain circumstances, but the lapse in outreach capability can be the difference between a successful brand and a fail costing millions of dollars. Many companies have launched protests over inconsistencies in Instagram’s implementation of their terms of service, claiming a lack of clarity and specifics regarding what content is and is not allowed. Whether it is the rules themselves or the enforcement thereof that is inconsistent, the impact of social media silence on businesses and the trend towards tapping social media influencers to pick up the marketing slack is indisputable.


Debra BorchardtSeptember 22, 2021
law.jpg?fit=960%2C640&ssl=1

10min5760

The latest twist for the SAFE Act, which would provide safe harbor to banks working with cannabis companies, is that it is now in the defense policy bill. Rep. Ed Perlmutter wanted to add the SAFE Act to the defense policy bill that Congress is expected to enact into law this fall. It is one of 812 amendments that were submitted to the House Rules Committee to be included in the defense bill, but most are actually related to national defense. It was approved by the House on a voice vote. 

“This will strengthen the security of our financial system in our country by keeping bad actors like foreign cartels out of the cannabis industry. But most importantly, this amendment will reduce the risk of violent crime in our communities,” Perlmutter said on the floor ahead of the vote. “By dealing in all cash, these businesses and their employees become targets for robberies, assaults, burglaries and more.”

The language that is being put forward in the defense bill does not include capital markets access. That would mean that a new amendment would be needed and that seems unlikely. That means access to the exchanges would not improve. 

Jaret Seiberg of Cowan & Co. wrote that he believes there are significant hurdles to this happening.  Seiberg said that he thinks Perlmutter knows there is not another non-spending bill that will pass this fall and that the House often adds amendments to bills that it knows will become law. “We saw that last year with efforts to add the SAFE Act to other bills. It is rare for those amendments to survive in the Senate. Senate Banking has not approved the SAFE Act. It has not even held a hearing on the bill. That would make it highly unusual for it to get added to a broader legislative package.”

He went on to write, “We believe Democrats are not going to give up the capital markets issue without getting social justice measures added to the bill. And we don’t see how one puts social justice provisions on this package as that would then require an excise tax. And once there is an excise tax then you are addressing 280E. In short, this quickly goes from a small protection for banking to a controversial package that could sink the broader bill. Adding the SAFE Act to the defense bill would derail Senate Majority Leader Chuck  Schumer’s broader push to legalize cannabis. Comments on his bill were due this month. We believe Schumer wants to keep momentum for his effort.”

In a similar vein, Stifel’s analysts also wrote that they don’t believe anything will happen with regards to the SAFE Act. They wrote in a recent report, “Senate Majority Leader Schumer (D-NY) said he is not interested in pursuing this piecemeal solution while Senator Booker said he would do everything in his power to oppose something “making the rich richer”. Some Democrats view this as only benefiting banks, and they are unwilling to give a “win” to the industry without restorative justice, which is a bridge too far for some Republicans. Federal decriminalization and expungement would accomplish very little, given minor drug cases are handled by the states.”

 


Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.


About Us

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


READ MORE



Recent Tweets

@GreenMarketRpt – 4 hours

$ACB revenue falls in Q4. Co also buries that it had a net loss of $133 million. But that’s an improvem…

@GreenMarketRpt – 4 hours

RT : Media maneuvers: sues Facebook, claiming was defamed when the platform appended fact-checking labels to two vide…

Back to Top