The Daily Hit is a recap of the top financial news stories for June 7, 2023.
On the Site
Red White & Bloom to Buy Financially Troubled Aleafia
Red White & Bloom Brands Inc. (CSE: RWB)(OTC: RWBYF) is buying Aleafia Health Inc. (TSX: AH)(OTCQB: ALEAF) in a deal that gives RWB 76% of the combined company, leaving Aleafia shareholders with 24%. The company believes there will by $10 million in synergy savings. Read more here.
No New Cannabis Business Licenses in San Francisco Until 2028
Under the terms of the measure approved unanimously by the city Board of Supervisors on Tuesday, no new cannabis business license applications will be eligible for consideration until New Year’s Eve in 2027 at the earliest, and that will only be if the board that year decides to let the new moratorium expire. Read more here.
Allegations of Ponzi Scheme, Forged Documents Plague Cannabis REIT IIPR
Cannabis real estate investment trust Innovative Industrial Properties Inc. (NYSE: IIPR) is facing more legal fury from its shareholders. The plaintiffs in the latest case allege that the REIT’s directors neglected to properly vet two of its largest tenants, Southern California-based Kings Garden and Parallel, resulting in considerable financial losses when the tenants became embroiled in scandal. Read more here.
Investor Money Continues to Flow into Troubled California, New York Markets
Despite the dire situation in California and criticism of the New York adult-use market launch, investor money continues to flow into those states. As of June 2, Viridian Capital Advisors reported that in the last 12 months California led in the total number of investments with 28 total raises, and it still posts up at third place with $294 million in invested capital. Read more here.
Rhode Island Cannabis Growers Plead for More Retailers
During a Rhode Island state Senate hearing this week, some of the 60 licensed marijuana farmers begged regulators to increase the number of licensed dispensaries, since the current number of seven is far from enough to handle the amount of cannabis the farms have ready to sell. Read more here.
In Other News
Thrive Social Equity Manager XVIII LLC
A Los Angeles cannabis entrepreneur has agreed to settle her suit claiming she was duped into a deal that would saddle her with debts, having purportedly been pressured into an unfair contract with little time to read it before a deadline. Jami Burrows and Thrive Social Equity Manager XVIII LLC filed a notice Friday letting the Los Angeles County Superior Court know they’ve entered a settlement resolving the dispute. Terms of the settlement were not disclosed in the notice. Read more here.
Flora Growth Corp.
Flora Growth Corp. (Nasdaq: FLGC), a global cultivator, manufacturer, and distributor of cannabis products, will effect a reverse stock split, effective June 9, at a ratio of 1-for-20. Read more here.
Florida Adult-Use Initiative
The executive director of the Suncoast NORML chapter fears a proposed recreational marijuana initiative may be doomed because it offers little change for consumers, but provides a bigger market for the medical marijuana giant backing the proposal. Read more here.