The Daily Hit is a recap of the day’s top business stories in the cannabis industry for March 8, 2022.
On The Site
Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) reported its financial results for the fourth quarter and full year ended December 31, 2021. In the fourth quarter, net revenue, which excludes intercompany sales of wholesale products, decreased 6.2% quarter-over-quarter to $88.5 million. The sequential revenue decline was driven by lower realized wholesale price per unit in Illinois and lower wholesale volumes sold in Illinois and Massachusetts, partially offset by higher wholesale volumes sold in Michigan and New Jersey and increased retail traffic. Read more here.
The Scotts Miracle-Gro Company (NYSE: SMG) stock was dropping 6% on news that the company lowered its full-year sales guidance for its hydroponic Hawthorne division. In addition, Scotts said the reduction would likely lead to adjusted earnings per share that are lower than previously expected. Speaking at the Raymond James 43rd Annual Institutional Investors Conference, CFO Cory Miller said the Company now expects Hawthorne sales to decline 15% to 25%, including the benefit of acquisitions. The company noted that sales in the segment have been challenged for several months due to an oversupply of cannabis, which is leading to a slowdown in both indoor and outdoor cultivation. Read more here.
On March 7, MedMen Enterprises Inc. (OTC: MMNFF) amended its complaint against Ascend Wellness (OTC: AAWH) with regards to its accusation of political influence-peddling but still maintains that its accusations are true. A few weeks ago, MedMen made the explosive allegation that New York’s cannabis regulators only approved Ascend’s request to acquire MedMen’s New York assets after political donations had been made. Ascend fought back saying the people accused of those actions weren’t actually at these political fundraising events and that MedMen would be correcting its allegations. Yesterday, it seems the corrections were made, but MedMen used the opportunity to insist that it is still telling the truth. Read more here.
Privately-held mortgage real estate investment trust company Pelorus Equity Group has provided $16.975 million in non-dilutive real estate debt financing to Royal Emerald Pharmaceuticals for the purchase of a new facility located in Desert Hot Springs, California. Royal Emerald is a DEA-registered, specialty pharmaceutical company working to research and produce federally compliant THC and CBD-based medicine for veterans and first responders. As one of the first pharmaceutical companies in the nation to receive federal licenses to research, manufacture, import, and distribute substances with THC and CBD, Royal Emerald will be able to ship its medical cannabis products across state lines and into international jurisdictions upon completion of the Desert Hot Springs Facility. Read more here.
In Other News
Simplifya announced the launch of its comprehensive suite of compliance solutions in New Mexico, expanding the company’s reach to 24 states. The suite of services available includes Simplifya Standard Operating Procedures (SOPs), Simplifya Smart Cabinet and Simplifya Self Audit, delivering a comprehensive and proven risk-mitigation offering that helps cannabis businesses remain compliant as New Mexico shifts to an adult-use market. Adult-use sales are slated to begin no later than April 1, 2022, and there are already 34 licensed nonprofit vertically integrated medical marijuana operators, with approximately 120+ dispensaries in operation statewide, according to the most recent state data.
MariMed, Inc. (OTCQX: MRMD) signed a definitive agreement to acquire its second provisional dispensary license from Green House Naturals, LLC. MariMed anticipates the Beverly MA adult-use dispensary will be operational during the second half of 2022. As part of its strategic growth plan, the company plans to develop a third adult-use dispensary in 2022. The Company currently operates an adult-use and medical dispensary in Middleborough and a 70,000 square-foot cultivation and processing facility in New Bedford, to which it expects to add 70,000 square feet in 2023.
Acreage Holdings, Inc. (CSE: ACRG.A.U, ACRG.B.U), (OTC: ACRHF, ACRDF) announced a licensing agreement with botanica, producer of Mr. Moxey’s THC and CBD products, to manufacture and distribute Mr. Moxey’s THC mints in Acreage’s operating markets as regulations allow. Mr. Moxey’s products will be launched in Ohio, New Jersey, Pennsylvania (as regulations allow), Illinois, New York, and Maine, which will double Mr. Moxey’s consumer reach.