The Daily Hit is a recap of the top financial news stories for Sept. 11, 2023.
On the Site
Trulieve Files Racketeering Lawsuit Against Former Employees, Vendors in Arizona
Florida-based Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) filed a civil racketeering lawsuit against two of its former purchasing managers in Arizona, as well as five other Arizona cannabis businesses, alleging they engaged in “kickback schemes” that gave the brands access to valuable shelf space at the company’s 21 Arizona marijuana shops. Read more here.
Federal Judge Blocks Arkansas Hemp Restrictions
Hemp-based product makers won a temporary reprieve last week when a federal judge blocked the state of Arkansas from enforcing newly enacted restrictions on intoxicating goods such as delta-8, delta-9, and delta-10 vape cartridges and edibles. Read more here.
Michigan Dispensary Owner Found Guilty of Evading Over $1M in Taxes
A federal jury last week found a Michigan cannabis dispensary owner guilty on multiple counts including evading federal income taxes and obstructing the Internal Revenue Service. Ryan Richmond, the owner and operator of the now-closed dispensary Relief Choices, LLC in Warren, Michigan, is accused of causing more than $1.15 million in tax loss to the IRS between 2011 and 2014. Read more here.
Connecticut Cannabis Sales Climb to $25M in August, Testing Capacity Questions Arise
The Connecticut marijuana market saw a decent sales bounce in August to almost $25 million, but with one of its two cannabis testing labs shuttered in March, questions abound about whether the state is in need of more labs to keep up with its steadily growing marijuana market. Read more here.
Maine Adult-Use Cannabis Sales Top $21 Million in August
Maine had its hottest month yet in August in the recreational marijuana sector, with sales topping $21.6 million, according to figures from the state Office of Cannabis Policy. That brings Maine’s total for the year in the recreational sector to $140.1 million. Read more here.
In Other News
Leafly Holdings (NASDAQ: LFLY) has effected a 1-for-20 reverse stock split of its common stock, par value $0.0001. Leafly’s common stock will continue trading on The Nasdaq Capital Market under its existing symbol LFLY and will begin trading on a split-adjusted basis when the market opens on Sept. 12. Read more here.
Maryland Adult-Use Cannabis
The Maryland Cannabis Administration announced that the first application round for cannabis business licenses will open on November 13. The Administration also announced the number of licenses, by license type, that will be available in the first application round. Read more here.
Two hemp businesses and a private citizen are challenging a Virginia law that instituted tougher limits on hemp products in Virginia in federal court, saying the new rules cause financial harm to hemp businesses and interfere in interstate commerce. The law, which went into effect July 1, set the maximum amount of THC in hemp products at 0.3% concentration and 2 milligrams per package. Read more here.