Adam JacksonJanuary 27, 2023
MMJ companies that hoped for first crack at the market must wait three years to apply.
Columbia Care Archives - Green Market Report
Adam JacksonJanuary 27, 2023
StaffJanuary 19, 2023
The Daily Hit is a recap of the top financial news stories for January 19, 2023.
On the Site
Columbia Care Closes Unprofitable Dispensaries, Cuts Jobs
In an effort to cut costs and try to become profitable, Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) closed four unprofitable dispensaries and cut its headcount by 25%. Col-Care said it closed one dispensary in California and three in Colorado. In addition, the company consolidated cultivation operations in California, Colorado, and Pennsylvania to improve its adjusted EBITDA contribution. Read more here.
IIP Says Cannabis Tenants Not Paying Rent
Innovative Industrial Properties Inc. (NYSE: IIPR) said rent collections dropped to just 92% for the month ending Jan. 31. The company said it had collected 97% of its rent at the end of December. The cannabis real estate investment trust outed various cannabis companies that have slipped in their rent payments. Read more here.
Minnesota Legalization Bill a Good Start But Could be Improved
A new bill in the Minnesota Legislature to legalize adult-use cannabis features a few provisions that indicate state lawmakers are learning which policies work and which don’t when it comes to replacing underground marijuana markets with regulated ones. Read more here.
In Other News
TerrAscend Corp./Wana Brands
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF), a North American cannabis operator, signed a multiyear agreement with edibles manufacturer Wana Brands to introduce Wana’s products at The Apothecarium retail stores and additional third-party retailers in New Jersey. The agreement will also transfer the manufacturing and sales of Wana’s existing portfolio of products in Maryland to TerrAscend. Read more here.
Relativity Acquisition Corp.
Relativity Acquisition Corp. (Nasdaq: RACY), a blank check company focused on targets in the legalized cannabis industry, received a determination letter from the Nasdaq Listing Qualifications staff that the company was not in compliance with the requirements of the Nasdaq Listing Rules or either of the alternative requirements for continued listing on The Nasdaq Global Market. Read more here.
Tier One Consulting
In a complaint filed Wednesday, Tier One Consulting, which is owned by DJCBP Corp., and David Ju said former city officials of both Baldwin Park and Compton in California conspired to illegally sell a cannabis license to Ju, and mishandled mitigation fees that he paid as part of the license deal. Read more here.
Debra BorchardtJanuary 19, 2023
The company also consolidated cultivation operations in California.
StaffJanuary 9, 2023The Daily Hit is a recap of cannabis business news for Jan. 9, 2023.
ON THE SITE
Tilray May Pivot to Fruit, Beer Sales if Cannabis Remains Slow
Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) may expand its alcohol industry footprint or begin growing fruits and vegetables to make up for a shortfall in the marijuana trade if cannabis sales remain in a slump, according CEO Irwin Simon. Because Congress has let cannabis remain federally illegal, Tilray’s U.S. distribution network is going largely unused. Read more here.
Tilray’s Revenue Falls As Net Losses Grow
Tilray Brands reported financial results for the second fiscal quarter that ended Nov. 30, 2022, as revenue fell 7% from last year’s $155 million to 2022’s net revenue of $144 million. Revenue also fell sequentially from the previous quarter’s $153 million. On a positive note, the company did record $29.2 million in operating cash flow and $25.4 million in free cash flow in the quarter. Read more here.
Illinois Cannabis Sales Topped $1.5 Billion in 2022 Amid Slowing Growth
Recreational marijuana sales in Illinois finished 2022 with more than $1.5 billion, up 13% from 2021. Total sales in December were the highest of any month at $143.9 million, following a seasonal pattern seen in previous years. But the rate of sales growth, 4% over December 2021, was the slowest this year, reflecting continued pressure on discretionary consumer spending from inflation. Read more here.
Columbia Care Announces Layoffs at Pennsylvania Facility
New York-based multistate operator Columbia Care (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) announced it will lay off 73 workers at one of its Pennsylvania cannabis production facilities, effective Feb. 28, in order to “meet the appropriate supply and demand levels of the market.” The facility in question is run by Green Leaf Medical LLC, a subsidiary of Columbia Care, in Saxton, Pennsylvania. Read more here.
Connecticut Tells Medical Marijuana Patients to Stock up Before Rec Sales Begin
A news release from the Connecticut Department of Consumer Protection urged Connecticut MMJ patients to “avoid lines, traffic” on Tuesday, Jan. 10, when recreational cannabis sales launch. That’s because the retail locations will all be hybrid dispensaries that will sell both medical and recreational marijuana, though some retailers will remain medical-only. Read more here.
IN OTHER NEWS
RIV Capital Inc.
RIV Capital Inc. (CSE: RIV) (OTC: CNPOF), a cannabis packaged goods company, scheduled a special meeting of its shareholders for June 6 at 10 a.m. EDT in response to the previously announced shareholder requisition from funds that are controlled or directed by JW Asset Management LLC. JWAM has requisitioned the Special Meeting to, among other things, elect five new directors to the board of directors of the company. Read more here.
Delta 9 Cannabis Inc.
As a part of its 2023 strategic plan, Delta 9 Cannabis Inc. (TSX: DN) (OTCQX: DLTNF) plans to streamline its cultivation operations and right-size capacity at its Winnipeg-based facilities, as well as various other cost cutting measures including reducing public company and investor relations costs. Cultivation capacity will be cut by roughly 40% at the facility, which will result in the temporary layoff of about 40 staff. Read more here.
AmeriCann Inc.
AmeriCann Inc. (OTCQB: ACAN) released financial and operational results for its fiscal year and quarter ending Sept. 2022. Revenue from operations increased approximately 44% for the year ended September 2022 relative to the year ended September 2021, an increase of $899,268. Read more here.
John SchroyerJanuary 9, 2023
The lay off of 73 workers is effective as of Feb. 28.
John SchroyerDecember 2, 2022
Draft regulations 'kicking them in the kneecaps.'
John SchroyerNovember 14, 2022Acquisition by Cresco Labs expected to close in Q1 2023.
Debra BorchardtNovember 4, 2022
Combs has created the first minority-owned and operated, vertically integrated MSO.
StaffOctober 11, 2022
The Daily Hit is a recap of cannabis business news for Oct. 11, 2022.
ON THE SITE
More MSOs Move Into West Virginia’s Medical Marijuana Market
As the medical cannabis industry in West Virginia begins to bear fruit, the state is finding more multistate tenants vying for a slice of the pie. Canadian-based Heritage Cannabis Holdings (OTCQX: HERTF) said that has officially begun operations in the state alongside its production partner, Harvest Care Medical, joining the likes of Trulieve (OTC: TCNNF), Verano Holdings (OTC: VRNOF) and Columbia Care, which is now owned by Cresco Labs (CSE: CL). Read more here.
Michigander Sues New York Over Residency for Cannabis Licenses
Variscite NY One, an LLC owned by Kenneth Gay, is suing the state of New York, the New York State Office of Cannabis Management, and its executive director, Christopher Alexander, over the state’s decision to award its first cannabis licenses to New Yorkers who have been incarcerated or arrested for the plant. Read more here.
Vermont Launches Adult-Use Sales, Dozens More Retailers Yet to Open
Vermont launched recreational cannabis sales the first day of October, and though the operators who did open their doors were delighted by the customer turnout, they also know more competition is right around the corner as additional stores continue to open. Read more here.
Court Ruling Could Pave Way for Cannabis Paraphernalia Imports, Exports
According to Above the Law, Canada-based Eteros Technologies was stopped by Customs and Border Protection while importing automated trimming machinery to Washington state last year. Eteros sued, arguing that there’s an exemption written into the Controlled Substances Act for localities that have legalized cannabis where paraphernalia is concerned. Read more here.
IN OTHER NEWS
Cansortium
Cansortium (CSE: TIUM.U) (OTCQX: CNTMF), a vertically integrated cannabis company operating under the Fluent brand, announced that Patricia Fonseca will resign as chief financial officer of the company, effective Nov. 21. Fonseca has been with the company since March 2021. Read more here.
Fire & Flower Holdings Corp.
Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF), a cannabis consumer retail and technology platform, entered into an amended and rested option agreement with an option to acquire Fire & Flower U.S. and an amended licensing agreement to deploy the Hifyre technology platform in the United States. Fire & Flower U.S. is also in the final stages of submitting applications for five cannabis retail store locations in the state of New Mexico. Read more here.
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