The Daily Hit is a recap of cannabis business news for Nov. 15, 2022.
ON THE SITE
California Cannabis Debt Bubble on Verge of Bursting
A slow but steady years-long trend of licensed marijuana companies in California not paying all of their bills might be nearing its climax, industry insiders warned, and a wave of business failures is on the way if (when) the debt bubble explodes. Read more here.
Kentucky Governor Provides Pathway for Medical Cannabis Use
The governor of one of last states holding out on medical cannabis signed an executive order today permitting possession and use of the product. Kentucky Gov. Andy Beshear signed the order Tuesday, pardoning “any and all persons” accused of marijuana possession after the order’s effective date of Jan. 1, 2023, provided certain conditions were met. Read more here.
Michigan’s Canapa Valley Farms Closes on $17 Million Deal With Pelorus
Pelorus Equity Group closed a $17.3 million debt financing agreement with Vassar Acquisitions Property Management and its cannabis operating entity, Canapa Valley Farms. The money will be used for building out Canapa’s state-of-the-art 90,000-square-foot greenhouse and 8,500-square-foot processing facilities. Read more here.
Cresco Labs Slashes Losses Despite Significant Headwinds
Sales for Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ), a vertically integrated, multistate operator, ticked down in the third quarter ended Sept. 30 to $210 million, in part due to the company’s exit from third-party distribution in California. Read more here.
Halo Stretches Margins Despite Lower Q3 Revenue
Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) posted results that showed rising margins despite lower revenue, driven by cost-cutting measures amid a congested supply side in California and Oregon. Revenue totaled $5.5 million, down 36% from $8.7 million in the same quarter last year. Read more here.
IN OTHER NEWS
Decibel Cannabis Company
Decibel Cannabis Company Inc. (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, achieved 5.3% national market share in October 2022, which places Decibel as the sixth-largest LP in Canada by market share. The company reported $18.3 million of total net sales in Q3, with a sequential decline of 1% over Q2 2022 and an increase of 37% over Q3 2021. Read more here.
Trees Corp. (NEO: TREE) increased its revenues in the third quarter by 60% from the first quarter of 2022, while total gross profit has increased by 78% over the same period due to a strengthening retail gross profit margin percentage. Read more here.
Stone Road, a California-based line of premium, sustainably grown cannabis products, announced a partnership with Gamut Cannabis to bring Stone Road’s line of products to Michigan in early 2023. This marks the rapidly growing brand’s fourth market launch, as it continues to expand into legal states across the U.S. Read more here.