Adam JacksonMay 18, 2023
The suit seeks a court order blocking the merger.
Akerna Archives - Green Market Report
Adam JacksonMay 18, 2023
StaffMay 1, 2023
The Daily Hit is a recap of the top financial news stories for May 1, 2023.
On the Site
Oregon Audit Forces State Official to Resign Cannabis Consultancy
Oregon’s secretary of state on Monday cut ties with a marijuana business she’d been consulting with after the business arrangement came to light following a state audit of Oregon’s cannabis industry. Read more here.
Cookies Partner Says 1 of 2 Lawsuits Dismissed, Blasts Press Coverage
A business partner of California-based global cannabis brand Cookies on Friday vigorously defended the company leadership following news last week of two pending lawsuits against the business and several of its executives. Read more here.
Akerna Sells Cannabis Assets to MJ Freeway Acquisition Corp. for $5M
Marijuana tech firm Akerna (Nasdaq: KERN) agreed to sell its cannabis-focused software assets to a special purpose acquisition company known as MJ Freeway Acquisition Co. for $5 million, a bid that a few weeks ago sidelined another potential buyer, POSaBIT. Read more here.
Cannabis Testing Lab Accuses Michigan of ‘Stonewalling’ Evidence Disclosure in Recall Fight
Bay City-based Viridis North LLC and the Michigan Cannabis Regulatory Agency have been wrapped up in litigation for two years over the recall of products tested by the lab. The state agency alleged Viridis’ testing results on 64,000 pounds of marijuana product contained “inaccurate and/or unreliable results.” The value of the recalled product at the time was roughly $229 million. Read more here.
Today’s Cannabis Earnings
• Acreage Holdings Posts Flat Q4 Sales in Solid 2022
• BZAM Reports Rising Revenue, But Also A Short Runway On Cash
• Cansortium Revenue Jumps In Fourth Quarter
• Curaleaf Posts $370 Million Loss for 2022
• PharmaCielo Sees Sales Jump In The Fourth Quarter
In Other News
Jones Soda
One of the nation’s most popular craft soda companies is ready to roll out a line of cannabis-infused drinks in Michigan. The Jones Soda Company’s “Mary Jones” will be made available soon in Michigan, Washington and Nevada. Read more here.
AVD (Advanced Vapor Devices)
The U.S. International Trade Commission ruled definitively in favor of U.S. cannabis vaporization company AVD (Advanced Vapor Devices) in a year-long patent infringement investigation initiated by Chinese e-cigarette maker Shenzhen Smoore Technology Limited, which owns CCELL. Read more here.
John SchroyerMay 1, 2023
The deal scuttled a previous bid by POSaBIT announced earlier this year.
Adam JacksonApril 7, 2023
The companies did not say how much the deal would be worth.
StaffMarch 21, 2023The Daily Hit is a recap of the top financial news stories for March 21, 2023.
On the Site
New York Cannabis Store Adds Potency Disclaimers to Some Products
One of the five licensed and legal marijuana retailers in New York state just added THC potency disclaimers to a range of its products due to flaws in the current lab testing system, which is supposed to determine cannabis product potency to be displayed on labels for customers to see. Read more here.
Tinley’s Sheds Weight as California Cannabis Beverage Market Tightens
Looking to address growing market challenges, The Tinley Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) cut staff and paused some expansion plans while it focuses on its relocation from Long Beach to Blaze Life Holdings’ (BLH) Canoga Park cannabis manufacturing and distribution facility. Read more here.
Another Shareholder Sues Innovative Industrial Over King’s Garden
As the cannabis industry has found itself struggling to compete against unlicensed players, high taxes and falling prices – the ripple effect continues. Late last week, another shareholder filed suit in Maryland against cannabis real estate investment trust Innovative Industrial Properties (IIP) (NYSE: IIPR) for failing to be truthful to investors about its business dealings with Kings Garden. Read more here.
Akerna Wraps Up 2022 With Losses, Exits Cannabis
Former cannabis company Akerna (Nasdaq: KERN) reported its unaudited financial results for the fourth quarter, which ended Dec. 31, 2022. Akerna is attempting to sell off its cannabis assets and has plans to merge with Gryphon Digital Mining. Read more here.
In Other News
Posabit Systems Corp.
Ancillary technology company Posabit Systems Corp. (CSE: PBIT, OTC: POSAF) released new financial guidance, and said it expects revenues of $60 million-$63 million for the 2023 fiscal year, with profits in the $15 million-$17 million range. Read more here.
Federal Rescheduling Review
U.S. Secretary of Health and Human Services Xavier Becerra this week declined to put a timeline on when his agency would finish an ongoing review of marijuana’s status as a Schedule 1 controlled substance, which could result in federal cannabis legalization. Read more here.
Veritas, Durango Cannabis Recalls
Two recalls were issued this week by Colorado authorities for products made by Veritas Fine Cannabis and Durango Cannabis Co., after testing found potentially unsafe levels of mold. Read more here.
Debra BorchardtMarch 21, 2023
Former cannabis company Akerna (Nasdaq: KERN) reported its unaudited financial results for the fourth quarter, which ended Dec. 31, 2022. Akerna is attempting to sell off its cannabis assets and has plans to merge with Gryphon Digital Mining.
Akerna reported that its software revenue fell 24% to $2.8 million for the fourth quarter and the total revenue for the quarter was also $2.8 million, which fell 30% versus last year’s fourth quarter. The company delivered a net loss of $25.2 million for the quarter versus $17.2 million for the same time period in the previous year.
Software revenue for the full year fell 19% to $12.9 million, while the total revenue for the full year fell 23% to $13.6 million. Akerna had a net loss for the full year of $79.1 million versus a net loss of $31.3 million for the previous year.
The company had cash and restricted cash of $7.9 million as of Dec. 31, 2022.
Losses from operations of $11.7 million and $55.4 million compared to a loss of $19.8 million and $33.1 million, respectively in last year’s same periods, reflecting lower overall operating expenses and less significant impairments in the current quarter of 2022 and higher depreciation, amortization and impairments in the full year 2022. The adjusted EBITDA loss was $1.8 million and $8.9 million compared with a loss of $3.1 million and $8.3 million for the same quarterly and annual periods of 2021.
Parts for Sale
Akerna decided to peace out on cannabis and sold its 365 Cannabis and Last Call Analytics business units in January 2023 for combined consideration valued at approximately $2.9 million. POSaBIT will tentatively be acquiring MJ Freeway, including the MJ Platform and Leaf Data System brands, and Ample Organics in the proposed sale transaction.
Green Market Report reported in January that Akerna said it would sell those business units to POSaBIT for $4 million in cash. The company said it planned to use the proceeds of the transaction, after expenses, to pay its remaining outstanding accounts payable and pay down any remaining principal balance on its outstanding senior secured convertible notes, in addition to net cash requirements associated with the proposed merger between Akerna and Gryphon.
“This transaction provides POSaBIT with an opportunity to combine complementary offerings to scale its business and expand its footprint with established platforms,” the company said in a statement. “These complementary products are likely to be mutually beneficial, as together they are expected to provide a comprehensive retail solution for cannabis operators, complete with supply chain compliance.”
Adam JacksonJanuary 30, 2023
One of the OG's of cannabis tech turns to crypto mining.
StaffJanuary 23, 2023The Daily Hit is a recap of the top financial news stories for January 20, 2023.
On the Site
Dutchie Sues Akerna Over Access to Pennsylvania Market
Dutchie claims that Akerna, which won the Pennsylvania state contract for its seed-to-sale marijuana inventory tracking program, deliberately erected systemic barriers for competitors like Dutchie so that medical marijuana companies in the state are more likely to use Akerna’s software. Read more here.
Lawsuits Clog the Pipes in Michigan Cannabis Program
For many marijuana operations seeking to open locations in communities across Southeast Michigan, plans are dying on the vine. Dozens of companies remain at loggerheads with city councils over the licensing selection process, and the disputes have been playing out in Michigan’s court system for years. Read more here.
Incoming: Next States to Join the Cannabis Industry?
The U.S. cannabis legalization movement – and thus the industry to which it gave birth – will continue to grow this year and next, almost certainly via a combination of state markets opening, ballot measures forcing cannabis legalization into state law, and state legislatures that decide it’s time to allow medical or recreational marijuana. Read more here.
Agrify to Recalibrate for Positive Cash Flow This Year
Agrify Corp. (Nasdaq: AGFY) said it is trying to “align its resources and growth plan with the current operating environment.” The company said that the measures will help the balance sheet go cash positive by year’s end. Read more here.
Delaware Lawmakers Introduce Longshot Cannabis Legalization Bills
Democratic lawmakers in Delaware have again introduced a pair of bills that would legalize adult-use cannabis. At first blush, the attempt appears likely doomed, primarily because Gov. John Carney has remained steadfastly opposed to legalization. Read more here.
In Other News
Clever Leaves Holdings Inc.
Clever Leaves Holdings Inc. (Nasdaq: CLVR, CLVRW), a multinational operator and licensed producer of pharmaceutical-grade cannabinoids, is winding down all its operations in Portugal as part of its ongoing restructuring initiatives. Under this restructuring plan, the company expects its Portuguese flower cultivation, post-harvest processes, and manufacturing activities to cease in full by the end of the first quarter of 2023. Read more here.
StoneCastle Cannabis Growth Fund
Spartan Fund Management Inc. intends to terminate its StoneCastle Cannabis Growth Fund, effective on or about March 24. Effective today, units of the fund will no longer be available for purchase by new or existing unitholders. Read more here.
Massachusetts
Despite falling prices and increasing competition, marijuana business officials across the state, and particularly in Central Massachusetts, still see the cannabis market as primed for opportunity, with operators having to be smarter about the way they operate their marijuana businesses. Read more here.
John SchroyerJanuary 23, 2023
Dutchie claims Akerna deliberately erected systemic barriers for competitors.
StaffJanuary 12, 2023The Daily Hit is a recap of the top financial news stories for January 12, 2023.
On The Site
Organigram Earnings Beat
Share prices for Organigram Holdings Inc. (Nasdaq: OGI) (TSX: OGI) were up nearly 8% in early Thursday trading after results illustrated the company’s financial discipline, as it trimmed losses and posted revenues that beat expectations for the first quarter ending November 30, 2022. The Canadian cannabis company reported net revenue of $43.3 million, up 43% from $30.4 million in the same time period last year. Read more here.
Cannabis Sentences Drop
A new report issued by the U.S. Sentencing Commission found that the number of federal cannabis possession sentencings dropped substantially in recent years, from 2,172 in the fiscal year 2014 to only 145 offenders in the fiscal year 2021. For the 70.1% of cannabis possession offenders who received a sentence of imprisonment in the last five fiscal years, the average prison sentence imposed was five months. Unfortunately, the report also noted that prior cannabis possession sentences added to an incarcerated person’s criminal history points resulting in longer sentences. Read more here.
Marijuana M&A Moves
There have been a lot of expectations for consolidation in the cannabis industry, so it seems 2023 is already off to a busy start. Today there are three deals to mention from Akerna, LEEF Brands, and Wee-Cig. Read more here.
Cobb Launches Sunburn
Earlier this month, Brady Cobb rolled out some of the first of 11 dispensaries his company Green Sentry Holdings bought from MedMen (OTC: MMNFF) for $63 million in August. All of the stores will be rebranded as Sunburn Cannabis by the end of the first fiscal quarter. Green Market Report spoke with Cobb at the launch party for the Orlando storefront. Read more here.
In Other News
Lowell Farms Inc. (OTCQX:LOWLF) has retained Canaccord Genuity Corp. to assist in its ongoing review of strategic alternatives. The Board of Directors has formed a strategic alternatives special committee of independent directors to explore, review and evaluate strategic alternatives that may be available to the Company to maximize shareholder value. The Special Committee will evaluate a full range of strategic and financial alternatives, including, but not limited to, one or more of the following: sale, divestiture, acquisition, or merger that may involve all or part of our business or assets, restructuring, recapitalization or any other strategic transaction that may be identified during our strategic review. Other than as described in this news release, the Company has not made any decisions related to strategic alternatives at this time. The Company cautions that there are no assurances that the evaluation of strategic alternatives will result in the approval or completion of any specific transaction or outcome. The Company does not intend to comment further unless and until the Board of Directors approves a specific transaction, concludes its review of strategic alternatives or determines that further disclosure is appropriate or required.
Cannara Biotech Inc. (OTCQB: LOVFF) announced details of its proposal to consolidate all of the issued and outstanding common shares of the Company on the basis of ten (10) pre-consolidation common shares for every one (1) post-consolidation common shares, subject to the approval of shareholders at the upcoming meeting of shareholders to take place on January 25, 2023, as well as TSXV approval. The Company does not intend to undergo a name change in conjunction with the proposed consolidation. Read more here.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced the opening of its Palm Beach Gardens dispensary as well as the expansion of BlueKudu infused chocolate flavors available on Florida retail menus. Beginning on Friday, January 13, Florida patients will have access to two new flavors of BlueKudu artisanal infused chocolates: espresso dark chocolate and caramel milk chocolate. Both flavors will be available for preorder online, in-store, and via statewide delivery. Read more here.
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