The big news this week was that the first licenses for adult use cannabis were awarded by the state of New Jersey. 13 licenses were handed out to existing medical marijuana operators. Some of the companies that got the green light included Curaleaf, GTI, Acreage Holdings and Terrascend. Sales could begin in just a few short weeks. More licenses are expected in the near future.
Tilray Brands Inc. (NASDAQ: TLRY) is leaning into its Hexo Corp. debt buying with the announcement that it would buy Hexo’s remaining $193 million senior secured convertible note. Tilray had originally announced in March that it was buying $211 million of the troubled company’s debt.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) delivered its results for the second fiscal quarter ended February 28, 2022. Organigram reported that its net revenue increased 117% to $31.8 million, from $14.6 million for the same time period in 2021. The company attributed the increase to growth in adult-use recreational revenue and international revenue, partly offset by a lower average net selling price due to product mix and a decrease in medical revenue.
The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) reported that net revenue increased 26.1% sequentially to $23.2 million in the first quarter from $18.4 million in the fourth quarter. However, the company also reported a net loss of $25 million and is working to reduce its cash burn.
New York State Governor Kathy Hochul released the 2023 budget that predicts adult-use sales of legal cannabis will generate $40 million in license fees and $16 million in partial receipts from the state’s retail taxes. Mor eimportant is that the governor is willing to give the cannabis companies a tax break by casically allowing 280e deductions at the state level.
Finally, markets are closed on Friday for the Good Friday holiday. Happy easter everyone.