The Daily Hit is a recap of the top financial news stories for April 19, 2023.
On the Site
Cannabis Retailers Can Expect ‘Massive’ Sales Day on 4/20
The unofficial cannabis holiday of April 20 – better known as 4/20 – is tomorrow, and retailers should be prepared for a “massive” sales day, according to tech firms that have tracked sales in past years. Read more here.
Over 100 Employees at Rise Dispensaries in Chicago Set to Strike on 4/20 Eve
Workers at three Rise dispensaries in the Chicago area were set to go on strike Wednesday at 4:20 p.m. — a day before the popular industry sales event on April 20. According to union spokesman Matthew McQuaid, more than 100 employees between Niles and Joliet, Illinois, will participate in the open-ended strike. Read more here.
Blumenauer Makes Another Attempt to Repeal 280E
Oregon’s long-serving cannabis champion in Congress, Rep. Earl Blumenauer, this week again introduced the Small Business Tax Equity Act to exempt state-legal cannabis companies from the onerous 280E section of the federal tax code, which essentially prevents marijuana businesses from claiming standard business tax deductions and costs the industry untold millions per year. Read more here.
New York State Cannabis Tax Revenue Falls Short of Predictions
Cannabis tax revenues in New York state are both up and down at the same time, according to state data. State marijuana revenues were up for the month of March after being flat for most of the prior 12 months, to $1.8 million in tax collections from about $1 million per month previously. Read more here.
Agrify Warns Investors About Unreliable Financial Statements
Agrify Corp. (Nasdaq: AGFY) issued a press release about raising $1.84 million after it slashed the price of its warrants, but the company didn’t issue a release telling investors that its financial statements were not reliable. While shares popped 73% on Tuesday to 30 cents, they were plunging 30% in early trading on Wednesday to lately sell near 20 cents. Read more here.
In Other News
GS Holistic LLC
A California federal judge has awarded more than $151,000 to GS Holistic LLC in a default judgment against the owner of a Los Angeles smoke shop over claims the shop sold counterfeit versions of GS Holistic’s “Stündenglass” bong products. In a judgment filed Monday, U.S. District Judge R. Gary Klausner ordered Andrea Harris — an owner of Hollywood Zaza Smoke & Vape LLC, which runs Zaza Smoke Shop — to pay $150,000 in statutory damages plus $1,166 in costs to GS Holistic after failing to appear or defend herself in the suit. Read more here.
Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) determined that it will make certain adjustments to the revenue figures reported for 2021 and 2022 after a review of certain purchases and sales of products through the company’s wholesale channel. Read more here.
Eastern Band of Cherokee Indians
Following more than an hour of discussion capping off months of debate, the Cherokee Tribal Council voted earlier this month to fully fund its cannabis enterprise’s eight-figure startup funding request. Qualla Enterprise will view the $64 million as a loan rather than an appropriation, eventually paying the tribe back. Read more here.