The Daily Hit is a recap of the top financial news stories for May 9, 2023.
On the Site
New Jersey Governor Signs 280E Cannabis Tax Law
New Jersey Gov. Phil Murphy signed a law on Monday to end the state’s unfair tax treatment of cannabis businesses. The legislation, written by the New Jersey Society of CPAs Cannabis Interest Group, decouples cannabis businesses from federal Internal Revenue Code Section 280E and creates a level playing field for cannabis businesses in the state. Read more here.
Illinois Cannabis Sales Stall in April
Illinois marijuana sales growth flattened last month for the first time since the state legalized recreational cannabis in 2020, hurt by declining prices and out-of-state competition. April sales totaled $132 million, compared with $131.8 million in same period a year earlier. Read more here.
Report: MSOs Bogart Market Share
A recent report from data provider BDSA found that big multistate operators dominate the dispensary shelves in mature markets – despite competition for local brands that have commanded local customer loyalty. Read more here.
Weedmaps Loses $4 Million in Q1 Despite Increase in Clientele
California-based WM Technology Inc., better known as Weedmaps, (Nasdaq: MAPS) shrank its losses to $3.9 million for the first quarter of 2023, from more than $31 million lost in the first quarter a year ago, while also increasing its client base by 12% compared to the same time period. Read more here.
• Ascend Wellness Revenues, Losses Improve in Q1
• Chicago Atlantic Real Estate Delivers Solid Quarter
• Cronos Group Revenue Slips, Updates 2023 Outlook
In Other News
GrowGeneration Corp. (Nasdaq: GRWG) reported first-quarter revenue fell 30.5% year-over-year to $24.9 million. The chain of specialty hydroponic and organic garden centers with 61 locations across 17 states maintained its revenue guidance for 2023 at between $250 million and $270 million. Read more here.
A New York magistrate judge gave state cannabis regulators more time to respond to discovery demands after they claimed to be nearing a draft agreement with the Michigander who is suing over residency requirements for cannabis licenses, despite plaintiff accusations that settlement talks are “mere delay tactics.” Read more here.