The Daily Hit is a recap of the top financial news stories for February 1, 2023.
On the Site
Two Dozen Indicted for California-to-New York Cannabis Smuggling Ring
According to a press release from the U.S. Attorney’s Office in the Northern District of New York, 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.” Read more here.
Scotts Gets Lift on Better than Expected Earnings, But Hawthorne Struggles
The Scotts Miracle-Gro Company (NYSE: SMG) announced results for its fiscal first quarter ending December 31, 2022, with revenue dropping by 7% to $526.6 million. This beat the Yahoo Finance average analyst estimate which was $501 million. Hawthorne segment sales decreased 31% to $131.5 million. Read more here.
New York District Judge Stays Firm on Social Equity Retail Pause
A district judge in New York said on Tuesday that the state must hold off on doling out licenses to social equity applicants in certain regions while a case against it makes its way through court. The injunction means applicants in five regions must continue to wait. Read more here.
InterCure Kills Deal to Buy Better
InterCure Ltd. (Nasdaq: INCR) (TSX: INCR.U) has killed its deal with Cann Pharmaceutical Ltd., announced Feb. 13, 2022, to buy the company, which is also known as Better. The acquisition was already in trouble in November 2022, with the company citing fundamental disagreements between the parties. InterCure also said that the closing conditions contained in the agreement were not met and the agreement was terminated. Read more here.
New York Gives Cannabis Farmers Another Month to Choose Business Model
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, one farmer confirmed to Green Market Report. The state Office of Cannabis Management relented on Monday during negotiations with cannabis farmers and gave all 280 growers until Feb. 28 to make their business model selection. Read more here.
In Other News
Treez, an enterprise commerce technology platform that streamlines retail and supply chain operations within the cannabis industry, reported continued growth in its 2022 full-year results. The report reflected the launch of new offerings, global and U.S. expansion, a successful capital raise, and the acquisition of fintech technology company Swifter, among other achievements. Read more here.
FRX Real Estate Holding Co.
A lawsuit seeking more than $2 million has been filed in Columbiana County Common Pleas Court against FRX Real Estate Holding Co. of Ohio LLC by the general contractor who worked on its new medical marijuana cultivation and processing plant in East End. According to court dockets filed Jan. 26, Palmer Construction Co. says FarmaceuticalRX LLC, an affiliate of the holding company, failed to pay the construction company for work performed. Read more here.
Former delivery drivers for a Pennsylvania medical cannabis company told a federal court that their claims that they were unlawfully misclassified as independent contractors and denied overtime wages are strong enough to survive a dismissal bid. Read more here.