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Adam JacksonOctober 14, 2022


After the markets closed on Thursday, Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) posted earnings results that saw falling revenue and rising losses, despite the company touting its quarterly savings and high long-term upside. The distributor of cannabis and cannabis accessories reported its financial results for the fourth quarter and year ending June 30, 2022.

Revenue for the fourth quarter totaled $15 million versus $19 million in the same time period last year. The company has previously said that dips in revenue could be lent to its departure from “low-margin, slow-moving accessories” for products with higher yields.

Net losses came out to $7.7 million for the quarter, versus $2.5 million in the previous period. The company said that the rise in losses was driven by a one-time asset impairment expense of $3.2 million related to the closure of a concentrate processing facility. The organization incurred rising costs of $2.8 million to launch the distributing business.

Earnings were a loss of seven cents per share.

“As our business fundamentals are improving, we can prioritize the market expansion of the Cannabis business that will generate positive gross margins,” said Joel Toguri, Chief Executive Officer of Humble.

Full-year revenues totaled $66 million versus $74 million in fiscal 2021. Net losses rose year-over-year, ending 2022 with a loss of $16.1 million versus $12 million in 2021.

Since Humble received an $8 million investment from Green Acre Distribution last November, the California cannabis distribution business says is fully operational with statewide sales coverage, trade marketing, and physical distribution capabilities. It posits that the business can deliver products to 95% of California dispensaries within a twenty-four turnaround. The company owns two warehouses and 15 delivery vehicles.

Humble also said that cannabis now represents 17% of gross margin dollars in the fourth quarter versus 10% in the prior quarter.

In April, the company formed HC Solutions Holdings Inc. — a joint venture with their investor Green Acre Distribution to further the cannabis distribution business throughout the United States, initially focused on accelerating the company’s expansion into cannabis distribution operations in California.

Since then, Green Acre Distribution has injected around US$8 million into the venture, granting it 45% ownership. Green Acre Capital funded its investment through an option agreement with Johnson Brothers, a leading wine, spirits, and beer distributor in the United States.

Also last month, Humble entered an exclusive sales and distribution agreement with leading cannabis brand Cookies. Humble said that it would distribute all products marketed and sold under the Cookies brand name in California. Sales and marketing support will include multi-channel advertising, promotional activities, and the stewardship of a focused brand ambassador team.

“As we look ahead, we are focused on accelerating our Cannabis expansion efforts in the U.S., building stronger relationships with our brand and retail partners throughout North America, and seeking out the most sought-after cannabis brands,” Toguri said. “We are committed to becoming the industry-leading distributor of cannabis and accessories, generating a sustainable profit and positive cash flow to deliver long-term shareholder value.”

StaffOctober 12, 2022


The Daily Hit is a recap of cannabis business news for Oct. 12, 2022.


SNDL Agrees to $7 Million IPO Settlement

A settlement has been reached in the case of cannabis company Sundial Growers, which now calls itself SNDL (OTC: SNDL). The $7 million settlement is the result of a class action suit that was led by David Draiman, singer for the heavy metal band Disturbed, which accused SNDL of not disclosing a product mold issue ahead of its $143 million initial public offering. Read more here.

Cannabis Rescheduling Discussion Moves Behind Closed Doors

President Joe Biden’s surprise order last week that two of his biggest federal agencies “expeditiously” undertake a review of marijuana’s illegality as a Schedule 1 controlled substance provided more questions than answers for many in the cannabis trade. Green Market Report spoke with the Brookings Institution’s John Hudak to learn more about what Biden’s legal options are for rescheduling – or descheduling – cannabis. Read more here.

TerrAscend Closes $45.5 Million in Debt Financing

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF), along with its subsidiaries in New Jersey and Maryland, closed a $45.5 million debt financing agreement with commercial real estate lender Pelorus Equity Group. Proceeds from the loan will support TerrAscend’s ongoing growth initiatives. Read more here.


Ayr Wellness

Ayr Wellness (CSE: AYR.A) (OTC: AYRWF), a vertically integrated U.S. multistate cannabis operator, has named consumer packaged goods and retail industry veteran David Goubert to serve as president to oversee the company’s operational and commercial functions, including production, supply chain, retail, wholesale, and marketing. Read more here.

California crackdown on illicit cannabis farms

California eradicated nearly one million illegally cultivated cannabis plants and the seizure of more than 200,000 pounds of illegally processed cannabis as part of the California Department of Justice’s annual Campaign Against Marijuana Planting program. Read more here.

StaffSeptember 26, 2022


The Daily Hit is a recap of cannabis business news for Sept. 26, 2022.


California Regulator Says Illegal Cannabis Business Should Pay $128 Million

California’s cannabis regulation authority wants a group of business owners to pay $128 million in collective penalties for manufacturing and selling unlicensed products in the state for more than a year – which the state says the defendants admitted in court. Read more here.

Green Thumb Accused of Sex and Age Discrimination

Green Thumb Industries (OTC: GTBIF) was accused of sex and age discrimination by a former employee that worked in a Rise dispensary in Pennsylvania. Carrie Baker filed the complaint on Sept. 22 alleging that she was “forced out” for not fitting with the corporate culture, which was described to her as young, single men. Baker is in her mid-fifties and said she was passed over for a shift supervisor role given to a substantially younger male co-worker. Read more about the case here.

Hemp-Derived Delta-8 Skirts Laws, Raises Health Concerns

At least a dozen states have banned the hemp-derived product, including Colorado, Montana, New York and Oregon, which have legalized marijuana. But delta-8 manufacturers call the concerns unfounded and say they’re driven by marijuana businesses trying to protect their market share. Read more here.

Incubator 1871 to Launch Cannabis Program

1871 is getting into weed. The startup incubator at the Merchandise Mart plans to launch a cannabis-industry innovation lab, bringing startups together with larger companies. The four-month program will launch in January in partnership with Grown In, a Chicago-based startup focused on providing cannabis training. Read more here.

Berner’s Cookies Heads to Pennsylvania, Wiz Khalifa Takes on Florida

TerrAscend said that it has entered into a multi-year agreement with TRP – the cannabis holding and operating company with the exclusive rights Cookies products – to cultivate and manufacture Cookies products in the Keystone State. Read more.

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) will launch Khalifa Kush medical cannabis products in Florida this weekend — part of an exclusive partnership with multi-platinum selling artist Wiz Khalifa. Read more.


UK-Based Cannabinoid Product Producer Looks to Acquire Cannaray Brands, Love CBD Health

Cellular Goods (LSE: CBX), UK-based wellness company providing lab-produced cannabinoid products, has signed a letter of intent to acquire Cannaray Ltd, the owner of Cannaray Brands Ltd and Love CBD Health Ltd. Under the terms of the deal, Cellular Goods will complete a reverse takeover of the Cannaray subsidiaries and acquire 100% of the issued share capital. Read more here.

Amazon Still Says No to Drugs, Boots Marijuana Businesses

Amazon says its guidelines around drugs and drug paraphernalia are longstanding and state that products can’t be primarily designed for making, preparing or using a controlled substance. For example, grinders that are equipped with features specifically for marijuana-related use are not allowed on the platform. Read more here.

4Front Ventures Launches Premier California Cannabis Brand in Massachusetts

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF), a vertically integrated, multistate cannabis operator and retailer, has brought its premier California cannabis brand, Island Cannabis Co., to Massachusetts. Following the company’s acquisition of Island in April, 4Front began cultivating 11 new Island flower strains at its state-of-art flower facilities located in Holliston, Georgetown and Worcester, Massachusetts. Read more here.

StaffSeptember 15, 2022


The Daily Hit is a recap of cannabis business news for Sept. 15, 2022.


Schwazze To Snap Up Two Colorado Lightshade Dispensaries

Schwazze (OTCQX: SHWZ) (NEO:SHWZ) has agreed to acquire Lightshade’s adult-use dispensaries in  the Denver area: one in Aurora and the other in Denver’s Washington Park neighborhood. The acquisition continues the multistate operator’s aggressive expansion in Colorado and will bring the company’s total number of dispensaries in the state to 25 upon deal closing. Read more here.

Glass House Closes On Another Natural Healing Center Dispensary

Glass House Brands (OTCQX: GLASF) is a step closer to shoring up its M&A grabs. The company closed on its acquisition of the Natural Healing Center dispensary located in Morro Bay, California, after being granted local regulatory approvals. Consolidation of the financial results of the Morro Bay store into Glass House’s financials will be effective immediately, so Glass House will end the third quarter with seven retail dispensaries. Read more about Glass House’s expansion strategy here.

Green Market Report’s Cannabis Tech Awards Profile: Meadow, Best Retail Tech

Meadow’s complete suite of connected tools support smarter cannabis dispensary sales, as well as marketing, inventory and compliance management. With real-world feedback from high-volume retail partners since 2014, its software is optimized to help cannabis retailers sell more products, stay fully compliant with state and local regulations, keep staff and customers happy, and boost the bottom line. This is why Green Market Report honored Meadow at the first ever Green Market Report Tech Awards in San Francisco. Read more about Meadow’s innovative retail platform here.


Report: More Than 100,000 Cannabis Jobs In Connecticut, New Jersey and New York by 2025

CannabizTeam, a cannabis-focused executive search and staffing firm, released its 1st Tri-State 2022 Cannabis Industry Salary Guide, a comprehensive report that provides insights into the rise and revenue potential of the tri-state market as it gains medical and recreational cannabis licenses. The report forecasts that the cannabis industry in Connecticut, New Jersey and New York will employ more than 100,000 people by 2025, but the industry will continue to rely heavily on temporary or on-demand staffers as they build out their infrastructure. Read more here.

Washington Department of Financial Institutions Approves Bankcard International Group’s PIN Debit Payment Services for Cannabis Dispensaries

Bankcard International Group (B.I.G.), a provider of cannabis merchant accounts for payment processing, announced that its services have been approved by the Washington State Department of Financial Institutions. Traditionally, cannabis businesses have had to use “workaround” solutions for electronic payments or accept cash only. B.I.G. provides the ability for cannabis retailers to accept PIN debit card payments just like traditional retail businesses. Read more here.

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