Business Archives - Green Market Report

Video StaffFebruary 3, 2023

5min4150

Earnings season is just beginning and it kicks off with Scott’s Miracle-Gro whose hydroponic brand Hawthorne saw its sales drop by 30%. Sales are forecast to continue falling by another 20-25%. CEO Jim Hagedorn described the cannabis market as a bloodbath and said the New York market had tripped over itself. Still, he insisted there was progress in the company’s investment into RIV Capital and Etain even though shareholders are suing RIV for the acquisition. Overall the company reported total sales fell by 7% to $526 million which beat expectations.

Canadian cannabis company High Tide (NASDAQ: HITI) (TSXV: HITI) saw both its revenues and its losses balloon in its final fiscal quarter of 2022, which ended on Halloween. revenues shot up for the year as a whole by 97% to C$356.9 million, but High Tide still lost $52.5 million in the fourth quarter alone, and posted a C$70.8 million loss for the fiscal year. 

LeafLink raised $100 million in Series D financing this week. The company also moved co-founders Ryan Smith and Zach Silverman to new roles. Smith is moving from CEO to Executive Chairman and Silverman from Chief Technology officer to Senior Advisor. The company has now raised more than $230 million. 

In Other fundraising news, Village Farms raised $25 million and 3D cannabis shopping app company Weedar raised $1.5 million. 

In legal news, a New York judge is still not allowing cannabis licenses in the five regions currently involved in a lawsuit regarding social equity applicants. It was a blow to the Office of Capital Management that has made social justice applicants a priority in the very slow opening of the adult-use program.

Two dozen people have been indicted for a national cannabis smuggling operation that shipped California cannabis to New York. The U.S. Attorney’s Office in the Northern District of New York, said the indictments cover an alleged six-year operation that “shipped thousands of kilograms of marijuana” and edibles from Fresno, California, to “locations throughout the United States, including the Capital Region of New York.”

Speaking of New York, cannabis regulators extended a deadline for marijuana farmers to choose their business model to the end of the month, instead of requiring them to make a choice by Feb 1. Brittany Carbone, a board member of the Cannabis Association of New York, said that the state OCM relented on Monday during negotiations with cannabis farmers and gave all 280 growers until Feb. 28 to make their business model selection.

And finally, one of the original cannabis tech firms is saying goodbye to the industry and hello to bitcoin. Akerna is selling its cannabis assets to PosAbit and what is left of the company will merge with Gryphon digital mining. Akerna has been struggling over the years with expensive acquisitions that it then sold for much less than what had been paid. Losses never seemed to decline by much and revenues never really took off. CEO Jessica Billingsley will be a part of the board of Gryphon as Akerna is no more.

That’s it for this week. Don’t forget to register for our Women’s Summit on March 23 in New York City.


StaffFebruary 3, 2023
shutterstock_1758241817.jpg?fit=960%2C640&ssl=1

3min3530

Origin Therapeutics Holdings Inc. (CSE:ORIG) is buying Safe Supply Streaming Co. Ltd. as per a binding LOI with a formal agreement expected by the end of February. Origin is an investment issuer that has historically focused on making equity investments in psychedelics-industry-related. It should be noted that in December 2022 Origin announced that its board of directors had initiated a review process to consider, review and evaluate strategic alternatives for the company.

Safe Supply will complete an arm’s length equity financing of at least $3 million and no greater than $4 million subscription receipts ultimately exchangeable into Resulting Issuer Shares. The proceeds from the Private Placement will be used to fund working capital and general corporate purposes, including potential streaming investments.

Upon closing of the Private Placement, the Resulting Issuer will have more than $6 million in cash to execute its business plan. Origin has agreed to lend up to $500,000 as interim financing to Safe Supply to allow Safe Supply to execute near-term business objectives.

Safe Supply is a pharmaceutical streaming and investment company tackling the global safe supply ecosystem. Safe Supply has a portfolio of potential letters of intent for investments across the value chain from narcotics licenses to laboratories to clinics and more.

Recently, Health Canada and British Columbia’s provincial governments moved to decriminalize certain schedule 1 narcotics marking the third and the final wave of de-scheduling in Canada in its movement to fight the healthcare crisis. The safe supply of cannabis and legalization started in 2013 in Canada. Following the success of cannabis legalization, in 2019 the Canadian government launched the second wave of de-scheduling narcotics with psychedelics and psychedelic-assisted therapy. The company said in a statement, “This third and final wave of de-scheduling marks a monumental period for the country and presents a unique opportunity for investors and commercial operators to work with the Canadian government to advance their efforts.”


StaffFebruary 2, 2023
daily-hit.jpg?fit=700%2C394&ssl=1

4min3670

The Daily Hit is a recap of the top financial news stories for February 2, 2023.

On the Site

MedMen on the Brink of Collapse

MedMen (OTC: MMNFF) is at the edge of capitulation after new financial statements on Thursday show the once-mighty MSO may not be able crawl out of the hole of debt it dug for itself. The company reported that it is more $137 million in debt, with $15 million cash and equivalents on the books. Read more here.

Curaleaf Employees Asks for Class Action Status Over Stolen Tips

Four dispensary employees asked an Illinois judge to certify a class in their suit against Curaleaf Holdings (CSE: CURA) (OTCQX: CURLF) alleging that MSO store managers pocketed more than $125,000 in stolen tip jar money meant for workers. Read more here.

Irwin Naturals Raises $40 Million for Clinic Expansion

Irwin Naturals Inc. (CSE: IWIN) (OTC: IWINF) reported that it had secured a credit facility as of February 1, 2023, with its existing commercial lender for up to $60 million with $40 million of it currently committed. Irwin Naturals said this money will help it to accelerate its roll-up and be a significant player in the world of psychedelic mental health clinics. Read more here.

Missouri’s Recreational Market Begins to Take Shape

Adult-use cannabis sales will be allowed to start on Monday in Missouri, led by medical marijuana operators that receive approval from the state by then. Lisa Cox, the state health department’s communication director, told Green Market Report that the “vast majority” of licensed medical cannabis facilities applied to participate in the adult-use program, but the approval process is just getting under way. Read more here.

In Other News

Celadon Pharmaceuticals

Celadon Pharmaceuticals Plc, a U.K. pharmaceutical company, gained MHRA registration for Good Manufacturing Practice manufacture of their high-THC cannabis active pharmaceutical ingredient. It is a worldwide industry leader with multibillion dollar acquisition potential. According to a spokesperson of the company, this is the first registration of a U.K. pharmaceutical facility for high delta-9-tetrahydrocannabinol cannabis API since the legalization of medical cannabis in the year 2018 in the U.K. Read more here.

Oregon Liquor and Cannabis Commission

Steve Marks, the longtime director of the Oregon Liquor and Cannabis Commission, told staff Wednesday that he will be resigning at the request of Gov. Tina Kotek. The resignation, first reported by Willamette Week, is not yet final, according to OLCC spokesperson Mark Pettinger. He said Marks had acknowledged the rumors swirling around the agency at a management meeting Wednesday, telling staff that details remained to be worked out. Read more here.


Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

By continuing I agree to your Privacy Policy and consent to receive relevant newsletters and other email communications on events, editorial features, and special partner offers from Green Market Report. I can unsubscribe or change my email preferences at any time.


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 – 16 hours

Georgia Medical Cannabis Program Rules Delayed over Technicality

@GreenMarketRpt – 16 hours

Illinois Cannabis Sales Bolstered by New Stores in January

@GreenMarketRpt – 17 hours

Bright Green Attempts to Lure Investors to Its $500 Million Offering

Back to Top

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

By continuing I agree to your Privacy Policy and consent to receive relevant newsletters and other email communications on events, editorial features, and special partner offers from Green Market Report. I can unsubscribe or change my email preferences at any time.