It’s time for your Daily Hit of cannabis financial news for January 29th, 2020.
On the Site
Top 10 Most Influential Communication Professionals To Watch In Cannabis 2020
Green Market Report compiled a list of the 10 most influential communication professionals in cannabis to keep an eye on. The list is Daniel Yi, Chief Communications Officer at Shryne Group Inc., Rosie Mattio Founder & CEO of Mattio Communications, Jason Erkes, Chief Communications Officer at Cresco Labs, Gia Moron, Founder and CEO of GVM Communications, Inc, Linda Marsicano, VP Corporate Communications at Green Thumb Industries, Alex Howe, Head Of Corporate Communications at Harvest Health & Recreation, Inc., Shawna Seldon Mcgregor, Founder & CEO of Maverick Public Relations, Lewis Goldberg, Managing Partner at KCSA Strategic Communications, Evan Nison, Founder & CEO of Nison Co., Heidi Haller Groshelle, Founder & CEO of Groshelle Communications
EcoGen Closes on $40 Million Private Placement
US-based company, EcoGen Labs, is continuing to expand and grow as it successfully closes on a $40 financing arrangement through private placement. EcoGen has a solid strategy for the utilization of this transaction, the plans include supporting the further development of its facilities, focusing on its research and development, and the expansion of marketing and sales divisions.
Cuomo Plan for Social Equity Forgets Minorities
Governor Andrew Cuomo (NY) announced his plans to legalize cannabis for adult use in his state budget speech last week. If we look closely at the Cuomo cannabis plan there are red flags. According to Cuomo’s budget, “the program will limit the number of producers and retail dispensaries to guard against a market collapse.”
States that have limited licensing markets face serious product shortages, increased consumer cost, and greater startup expenses that ultimately keep illicit markets going. Fewer licenses at higher costs mean fewer entrepreneurs. In many markets the initial capital requirements are so high minority entrepreneurs can’t compete.
“Hot Plants” Prove Problematic for Hemp Entrepreneurs
Current issues plaguing hemp producers in 2019 are coming to light, and industrial hemp poses a new challenge: how to bring a crop in under the .3% THC limit mandated by the federal government
A hemp plant can “go hot” (aka experience a spike in THC levels) due to using a new seed variety, environmental factors, or a plant left to flower for too long. This can lead to what the National Law Review article describes as “excessive non-compliance and crop destruction”, not to mention devastating financial losses for growers.
In Other News
Curaleaf Set to Open First Adult Use Cannabis Dispensary on Cape Cod, Massachusetts
Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF) is going to be the first adult-use dispensary in Cape Cod, the facility is set to have its grand opening on February 6th, 2020.
“We are very excited to bring the first adult-use cannabis dispensary to Cape Cod. Provincetown is a vibrant community where we plan to hire over 30 people and become engaged with the cultural activities, charities and local initiatives that are important and make the Outer Cape and Provincetown so special,” said Patrik Jonsson, President of Curaleaf Massachusetts.
Driven Deliveries to Acquire Humboldt Heritage Inc.
Driven Deliveries has announced its decision to purchase Humboldt Heritage Inc., a cannabis company based in Northern California.
The acquisition is expected to add an additional $20M to the company’s 2020 revenue forecast.