Colorado Archives

Adam JacksonJuly 7, 2023

Mayor Michael Hancock called Denver the "the gold standard for cannabis regulation."

StaffJune 22, 2023

The Daily Hit is a recap of the top financial news stories for June 22, 2023.

On the Site

Canopy Growth Sees More Than $3 Billion in Losses

Canada-based cannabis industry leader Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) has reported steep rising losses worth more than C$3 billion. Canopy posted revenue of C$87.54 million for the fourth quarter ending March 31, 2023 versus last year’s $101 million – a decline of 14%. Still, the revenue figure beat Yahoo Finance’s analyst average of $73.1 million for the year. Read more here.

SEC Fines Marcum $10 Million for Improper SPAC Audits

The Securities and Exchange Commission censured accounting firm Marcum LLP for engaging in unethical and improper professional conduct related to Special Purpose Acquisition Corporations (SPAC). The SEC also noted that Marcum offered $10 million to settle the case, which the commission said it will accept it. Marcum is major accounting partner in the cannabis industry. Read more here.

Colorado Cannabis Market Shows First Price Rise Since 2021, Ducking Deflation

After nearly a two-year stretch of deflation, marijuana prices in Colorado are showing the first signs of life since October 2021, according to the Colorado Department of Revenue. The retail price for a pound, which had plummeted from a peak of $1,731 in January 2021 to a historic low of $649 by April 2023, has risen to $703 in June 2023. The price hike is a break from the two-year trend of slumping cannabis prices, which hovered around half of the rates seen before 2022. Read more here.

iAnthus Gets Hit With a RICO

A Maryland-based cannabis dispensary, LMS Wellness Benefit LLC, has accused iAnthus Capital Holdings Inc. (CSE: IAN) (OTCPK: ITHUF) of a scheme to divert at least $4.5 million from its funds into iAnthus’ other business interests, according to a lawsuit filed in federal court this week. In the civil RICO suit, LMS claims that a management firm it had hired, S8 Management LLC, which shares several executives and directors with iAnthus, made unauthorized money transfers from LMS’s account to the failing subsidiaries of iAnthus, Law360 reported. Read more here.

Anti-Cannabis Group Sues New York Over Legalization

A group of anti-cannabis parties has banded together to sue the State of New York including Governor Kathy Hochul, the Cannabis Control Board and the Office of Cannabis Management. The case was filed on June 20, 2023. New York passed the Marijuana Regulations and Taxation Act (MRTA) on March 31, 2021 which legalized adult-use cannabis. Read more here.

Unlicensed Dispensary Landlords Face New Penalties Under Council Bill

The City Council passed a bill Thursday that would hold landlords accountable for renting to illegal marijuana retailers, the latest effort to step up enforcement against unlicensed smoke shops. When city inspectors find an unlicensed shop selling cannabis, cigarettes or other tobacco products, the city could issue a warning to the shop’s landlord. If a subsequent inspection turns up more illicit sales, the landlord could be fined $5,000, followed by $10,000 for any subsequent violations, the bill says. Read more here.

In Other News

Fire & Flower On Sale

Fire & Flower Holdings Corp.(TSX: FAF) (OTCQX: FFLWF) has received approval from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act for the implementation of a sale and investment solicitation process to be conducted by FTI Consulting Canada Inc., and a stalking-horse agreement between the company and 2707031 Ontario Inc., an affiliate of Alimentation Couche-Tard Inc. Read more here.

Hexo, Tilray Deal Closes

HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) announced today the closing of the second of two tranches of the non-brokered private placement of Series 1 Preferred Shares previously announced on June 1, 2023 and the subsequent completion of the transactions contemplated by the previously announced statutory plan of arrangement under section 182 of the Business Corporations Act (Ontario) involving the Company and Tilray Brands, Inc. (NASDAQ: TLRY) Read more here.

Adam JacksonJune 22, 2023

Prices have been on a rapid slide since the summer of 2021, reaching record lows by the end of last year.

Adam JacksonMay 18, 2023

The suit seeks a court order blocking the merger.

Adam JacksonMay 12, 2023

The deal enhances Schwazze's presence in northern Colorado.

Adam JacksonMay 8, 2023

In a first-of-its-kind decision, the Trademark Trial and Appeal Board has upheld the Controlled Substances Act in a cannabis trademark case, despite state-level legalization.

According to Law360, the ruling came in response to a trademark application submitted by the National Concessions Group, a Denver-based subsidiary of Canadian cannabis consumer goods company SLANG Worldwide (OTCQB: SLGWF).

National Concessions pursued a trademark to protect the brand name “Bakked” for selling what the firm characterizes in its application as an “essential oil dispenser, sold empty, for domestic use.” However, the TTAB unanimously agreed with the examining attorney’s contention that the product is illegal drug paraphernalia, as it is primarily intended for “dabbing” cannabis-based oils.

In her precedential decision, Administrative Trademark Judge Cindy Greenbaum stated that Colorado’s state laws legalizing marijuana would not affect federal law or laws in other states. She noted that the federal trademark registration the applicant sought would be nationwide in effect, further complicating the matter.

The application’s rejection also stemmed from a press release by National Concessions, which advertised its products as being from the largest cannabis company in the country. That led the panel of trademark board judges to agree with the examiner’s argument, supported by news clippings used as evidence such as “The Official Dab Dictionary” and “Dabbing is Becoming a New Way to get High.”

Greenbaum also clarified that the application differed from registrations granted to products like tobacco jars, grinders, rolling paper, or e-cigarettes, which may also be used with cannabis products but are not unlawful under the CSA.

Pamela Hirschman, the National Concessions lawyer, expressed frustration over the decision, citing the legality of cannabis in the majority of states. She argued that there should be a way to protect both consumers and companies from infringement. The client has not yet decided whether to appeal the decision to a federal appeals court.

“At this point and time, the trademark office is very hesitant to allow registrations for goods that could be considered covering goods that could be considered drug paraphernalia,” she added.

Adam JacksonApril 27, 2023