The Daily Hit is a recap of the top financial news stories for February 8, 2023.
On the Site
Scotts Miracle Gro Sues TerrAscend, Jason Wild Over Etain Acquisition
The acquisition of New York medical cannabis operator Etain by Riv Capital is entering another messy chapter. Scotts Miracle-Gro (NYSE: SMG), owner of the hydroponic company Hawthorne, has filed a lawsuit against Jason Wild and TerrAscend (OTC: TRSSF) claiming they ruined its $175 million investment. Read more here.
Washington State Cannabis Residency Requirement Upheld by Federal Court
In a break from a national trend, a federal judge in Washington state upheld the state’s residency requirement for cannabis business ownership and ruled that the U.S. Constitution’s dormant commerce clause doesn’t apply because marijuana is still federally illegal. Read more here.
Biggest Cannabis Grower in Louisiana to Double Capacity
Good Day Farm, which is a partner with Louisiana State University and one of only two cannabis farmers in the state, is increasing its canopy size by 40,000 square feet within an already immense 225,000-square-foot facility in the town of Ruston. Read more here.
Capital Crunch Sparks Crowdfunding Campaigns
Capital has dried up in the cannabis industry, but companies still need investors and their money. This is sparking a renewed interest in crowdfunding. Companies are also finding that many platforms allow for debt deals versus straightforward equity deals. Read more here.
In Other News
Drippy Enterprises Inc., a cannabis-infused beverage company, aims to raise up to $1 million for the purpose of growing its cannabis-infused soda lines, expanding distribution channels, and increasing product inventories to meet the growing demand for cannabis beverages. Read more here.
EGF Theramed Health Corp.
EGF Theramed Health Corp. (CSE: TMED) (OTC Pink: EVAHF) (FSE: AUH) signed a nonbinding letter of intent to acquire its first cannabis dispensary, a single store on Vancouver Island in British Columbia. EGF Theramed noted in the announcement that it believes the market has become increasingly favorable to acquire assets from distressed single store operators favoring scaled centralized operations. Read more here.
Item 9 Labs
Phoenix-based Item 9 Labs Corp. (OTCQX: INLB), a vertically integrated U.S. cannabis franchisor and operator, shared that its premium cannabis brand, Item 9 Labs, recorded a 30% year-over-year increase in units sold in January 2023, compared to January 2022. Read more here.