After taping Marijuana Money, we learned that HEXO Corp. decided to layoff 200 employees after also postponing the release of its earnings results. The company said it is rightsizing its operations to adjust to a changing market and regulatory environment with a view towards profitability and long-term stability.
“This has been my hardest day at HEXO Corp,” said Sebastien St-Louis, CEO and co-founder of the Company. “While it is extremely difficult to say goodbye to trusted colleagues, I am confident that we have made sound decisions to ensure the long-term viability of HEXO Corp. The actions taken this week are about rightsizing the organization to the revenue we expect to achieve in 2020.”
We found out that the FDA and FTC joined forces to warn an online CBD merchant Rooted Apothecary about making unsubstantiated claims. The website claimed that its CBD infused products could be used to treat conditions like teething pain and earaches in babies. The letter also warned the company about describing the CBD products as dietary supplements. The letter was sent on October 10, but not made public until this week. The company has 15 days to correct the violations.
In Washington, a U.S. Senate Caucus on International Narcotics Control had a hearing on the health impacts of marijuana, but it turned into a discussion on how cannabis’s current federal classification makes it harder for researchers to shed light on those effects.
Green Growth Brands reported revenue of $15.7 million for its fiscal fourth quarter, however, the company delivered a whopping net loss of $31 million. The operating expenses for the quarter were $20 million. Most of the revenue came from one dispensary in Las Vegas called The Source and they brought in $5.5m. CBD revenue was $1.7 million and they are now running over 160 stores. That’s like what $10 grand a store? The company said it is shifting from building to executing in 2020.
Innovative Industrial Properties closed on a Florida property from Trulieve. Also, Trulieve was added to the OTCQX index trading under the symbol TCNNF.
Casa Verde led a $7m round of financing for cannabis lender Bespoke Financial.
Megan Rapinoe has signed on with the women-owned sports recovery CBD brand called Mendi. Rapinoe will lend her voice and vision to the company and it’s her first sponsorship since winning the world cup this year. Rapinoe became a breakout star during this year’s soccer championship.