StaffAugust 8, 2023
The culture around Cookies is undeniable and has been exported far outside of California. With clothing lines, hemp products, and an illicit market that loves to knock off Cookies’ branding, Cookies is at the top of cannabis consumers’ minds in and outside of its home state.
Source: Brightfield Group, US Cannabis Product Brand Health, Q2 2023
StaffJuly 24, 2023
The Daily Hit is a recap of the top financial news stories for July 24, 2023.
Big Name Marijuana Brands Dive Into Intoxicating Hemp Products
At least four high-profile companies have already made the leap in varying forms, including California-based Cookies, New York-based Curaleaf, Mike Tyson’s celebrity brand Tyson 2.0, and California cannabis brand Jeeter. Read more here.
New York’s Empire Cannabis Club Pledges to Take Regulators to Court
Unlicensed marijuana retail chain Empire Cannabis Club – which has six locations spread around New York City – is intent on taking state regulators to court in order to prove its legality. Empire’s owners said they will defend their business model as legal, pursuant to the 2021 Marijuana Regulation and Taxation Act, which includes a “safe harbor” provision for marijuana membership clubs. Read more here.
Massachusetts Social Equity Fund Never Funded
A special state fund in Massachusetts created in 2022 by lawmakers to route millions of dollars in aid to social equity entrepreneurs was never given a single dollar, and so has never awarded any monies to social equity cannabis companies. Read more here.
Body and Mind to Sell Ohio Dispensary to PA MMJ Operator FarmaceuticalRX
Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) agreed to sell its Ohio dispensary for more than $8 million, the company announced Monday. The sale is part of Body and Mind’s ongoing strategy to enhance its operating flexibility as it focuses on its other statewide stakes. The company also recently left the Michigan market. Read more here.
Leafly Sued by Photographer for Using Tupac, Snoop Dogg Photos
The online dispensary locator app Leafly (OTC: LFLY) is in hot water for using a photographer’s images of rappers Tupac Shakur and Snoop Dogg. Photographer T. Eric Monroe, whose work has been featured in publications such as Thrasher and XXL Magazine, claims Leafly Holdings unlawfully published and displayed Monroe’s original photography on its website. Read more here.
Minnesota
A new Minnesota state law, which kicks in Aug. 1, allows people 21 or older to use pot and legally grow and possess limited amounts of it. The law sets up a licensing structure and a state agency to regulate growers and sellers. But some decisions about where pot can be used and sold are left to municipalities – many of which are placing temporary bans on cannabis retail. Read more here.
Florida
Two Black farmers have received licenses to grow, process and sell medical marijuana in Florida, after a new state law helped clear the way for the long-awaited licenses. The Florida Department of Health issued the licenses July 11 to Suwannee County farmer Terry Donnell Gwinn and Bascom-based Shedrick McGriff. The farmers each met a Friday deadline to submit a required $5 million bond to begin operating, sources confirmed. Read more here.
Albania
The Albanian Parliament on Friday legalized cannabis for medical purposes in a country once known as a European crossroads for marijuana trafficking. The Parliament voted 69-23 to allow limited and controlled growth of cannabis plants, a move harshly contested by the opposition. Read more here.
John SchroyerJuly 24, 2023
Historically, marijuana companies avoided the hemp market.
StaffJuly 6, 2023The Daily Hit is a recap of the top financial news stories for July 6, 2023.
New Cookies Lawsuit Alleges Fraud, Breach of Contract, Other Misdeeds
Global cannabis brand Cookies has been hit with yet another breach of contract lawsuit from a business partner alleging theft and fraud. The new legal action directly piggybacks on two earlier lawsuits that alleged Cookies routinely uses threats of violence and retribution in business dealings. Read more here.
Parallel’s Investor Suit Against Wrigley Allowed to Move Forward
The investor case against Parallel Cannabis’ former CEO William “Beau” Wrigley Jr. and other executives will move forward after a Florida Judge ruled that the investors provided enough evidence of fraud. The case claims that Wrigley and the other executives misled them on the company’s debt and about how their investments would be used. Read more here.
Some California Cannabis Operators Could Feel the Heat from New Tax Law
Santa Barbara County’s Board of Supervisors is pursuing a strict policy to address tax delinquency within California’s cannabis industry. In a recent decision, the board gave initial approval to a law that could shutter any cannabis business in the county if it fails to pay taxes more than 30 days past the due date. Read more here.
Michigan Edibles Maker Fined $100k, Loses Medical Cannabis License
Longtime Michigan edibles maker Sky Labs has been fined $100,000 and had its medical processing permit revoked by the state Cannabis Regulatory Agency after 20 milligrams of its mislabeled gummies were consumed by a four-year-old child. Read more here.
Ending 280E Could be Bigger than SAFE or TSX Uplisting
Many believed that the catalyst to turn things around for the cannabis industry would be the passage of banking legislation like the SAFE Act. However, it could be something as simple as 280e. But as with most things in cannabis, even 280e isn’t simple. Read more here.
Cronos Group
Cronos Group (Nasdaq: CRON), the Canadian cannabis producer backed by cigarette-maker Altria Group (Nasdaq: MO), reportedly is exploring options that include a potential sale after attracting acquisition interest, people familiar with the matter said. Cronos did not provide Reuters with any comment on the situation. Read more here.
Curio Wellness
Days after Maryland legalized recreational cannabis sales, Curio Wellness has revealed a $4.1 million fund-raise from undisclosed investors, according to Crunchbase. The Lutherville-Timonium headquartered firm raised $21.4 million in 2021, besides securing a $26 million mortgage deal to expand its growing facility from Severn Savings Bank. Read more here.
Germany
Germany’s Health Ministry has unveiled a draft bill to legalize marijuana, submitting it to state officials and the public for review. The legislation would allow adults to cultivate a limited number of cannabis plants for personal use and set rules for the creation of social clubs where they could obtain marijuana. Officials are also planning to introduce a complementary second measure that would establish pilot programs for commercial sales in cities throughout the country. Read more here.
John SchroyerJuly 6, 2023
The suit alleges theft of cannabis genetics from SeedJunky through a joint business venture.
StaffJune 14, 2023The Daily Hit is a recap of the top financial news stories for June 14, 2023.
Hexo Shareholders Greenlight Tilray Deal, Company Warns of Possible Default
Canadian licensed cannabis producer Hexo Corp. (TSX: HEXO) (Nasdaq: HEXO) is set to be acquired by Tilray Brands, following a formal sign-off on Wednesday by Hexo shareholders in a near-unanimous vote. If the deal doesn’t go through as planned by the end of the month, Hexo could wind up in default, the company warned. Read more here.
Maryland Regulators Shut Down Cookies Baltimore Over Advertising, Security Breaches
Cookies Baltimore, formally known as MIMD Operating 1 LLC, opened its doors on May 15 and found itself in hot water less than a month later. The court document obtained from the Maryland Cannabis Administration details alleged breaches of both the Cannabis Reform Act and Code of Maryland Regulations. Read more here.
High Tide Revenue Rises, But Company Still in the Red
Canada-based High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) drastically improved its revenue for its second fiscal quarter, which ended April 30, by a whopping 46%, but the company still fell short of profitability, with a $1.6 million net loss. Read more here.
Aurora Cannabis Revenues Rise as Cash Burn Rages
Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) reported total net revenue for its fiscal third quarter was $64 million, which rose sequentially from the second quarter’s revenue of $61.7 million and topping last year’s revenue of $50.4 million. The company attributed the increase to the contribution of $10.8 million from Bevo, which was acquired in August 2022. Read more here.
Aleafia Revenue Increases Slightly Ahead of RWB Acquisition
Aleafia Health Inc. (TSX: AH)(OTCQB: ALEAF) delivered its audited financial results for the quarter and fiscal year ending March 31 in Canadian dollars. During the fourth quarter, total revenue increased 9% to $11.7 million from $10.7 in the 2022 fourth quarter. Read more here.
Pineapple
Pineapple Inc. (OTC Pink: PNPL), a legal cannabis industry operator focused on non-plant touching activities, such as leases to licensed cannabis operators, online, and in-store hemp-derived CBD transactions, and cannabis business licensing and consulting services, has acquired Pineapple Wellness Inc. and its e-commerce platform, PineappleWellness.com. Read more here.
PRODUCT RECALL: Kind Care of Colorado & Elevated
Another marijuana recall over mold and yeast concerns has hit Colorado, with the latest safety notice impacting dispensaries in Fort Collins and Longmont. According to a June 14 recall notice from the Colorado Marijuana Enforcement Division, Kind Care of Colorado in Fort Collins and Longmont dispensary Elevated sold potentially unsafe marijuana flower, shake and pre-rolled joints from February 10 to June 6 of this year. Both medical and recreational marijuana harvests were included in the recall. Read more here.
StaffMay 1, 2023The Daily Hit is a recap of the top financial news stories for May 1, 2023.
Oregon Audit Forces State Official to Resign Cannabis Consultancy
Oregon’s secretary of state on Monday cut ties with a marijuana business she’d been consulting with after the business arrangement came to light following a state audit of Oregon’s cannabis industry. Read more here.
Cookies Partner Says 1 of 2 Lawsuits Dismissed, Blasts Press Coverage
A business partner of California-based global cannabis brand Cookies on Friday vigorously defended the company leadership following news last week of two pending lawsuits against the business and several of its executives. Read more here.
Akerna Sells Cannabis Assets to MJ Freeway Acquisition Corp. for $5M
Marijuana tech firm Akerna (Nasdaq: KERN) agreed to sell its cannabis-focused software assets to a special purpose acquisition company known as MJ Freeway Acquisition Co. for $5 million, a bid that a few weeks ago sidelined another potential buyer, POSaBIT. Read more here.
Cannabis Testing Lab Accuses Michigan of ‘Stonewalling’ Evidence Disclosure in Recall Fight
Bay City-based Viridis North LLC and the Michigan Cannabis Regulatory Agency have been wrapped up in litigation for two years over the recall of products tested by the lab. The state agency alleged Viridis’ testing results on 64,000 pounds of marijuana product contained “inaccurate and/or unreliable results.” The value of the recalled product at the time was roughly $229 million. Read more here.
Today’s Cannabis Earnings
• Acreage Holdings Posts Flat Q4 Sales in Solid 2022
• BZAM Reports Rising Revenue, But Also A Short Runway On Cash
• Cansortium Revenue Jumps In Fourth Quarter
• Curaleaf Posts $370 Million Loss for 2022
• PharmaCielo Sees Sales Jump In The Fourth Quarter
Jones Soda
One of the nation’s most popular craft soda companies is ready to roll out a line of cannabis-infused drinks in Michigan. The Jones Soda Company’s “Mary Jones” will be made available soon in Michigan, Washington and Nevada. Read more here.
AVD (Advanced Vapor Devices)
The U.S. International Trade Commission ruled definitively in favor of U.S. cannabis vaporization company AVD (Advanced Vapor Devices) in a year-long patent infringement investigation initiated by Chinese e-cigarette maker Shenzhen Smoore Technology Limited, which owns CCELL. Read more here.
John SchroyerMay 1, 2023
CRP requested dismissal of its case, with a hearing scheduled in June.
StaffApril 25, 2023The Daily Hit is a recap of the top financial news stories for April 25, 2023.
Cookies Lawsuit: Company Uses Threats, Violence, Kickbacks to Do Business
The leaders of global cannabis brand Cookies have been using threats, violence and financial kickbacks to enrich themselves at the expense of company shareholders, according to a lawsuit filed by two of the company’s investors. Read more here.
Missouri Cannabis Jobs Boom, Market Saturation Concerns Loom
Legalization of recreational cannabis in Missouri led to a surge in job growth within the industry, but the trend could be slowing as labor needs are met. The number of active licenses to work in the sector catapulted from 9,800 in October to more than 14,000 in March, after voters approved recreational marijuana use through a constitutional amendment last November. Read more here.
Schwazze to Buy Everest Apothecary in New Mexico for $38 Million
Denver-based Medicine Man Technologies Inc., which operates as Schwazze (OTCQX: SHWZ) (NEO: SHWZ), has signed definitive documents to acquire a batch of cannabis assets in New Mexico. The acquisition will allow Schwazze to manage Everest Apothecary, a non-profit corporation operating in the state. Read more here.
Data Confirms 4/20 is THE High Holiday
Now that 4/20 is officially in the rearview mirror, the bean counters say that this year’s holiday did not disappoint. Consumers clearly don’t care whether cannabis companies are making any money or not, they were here to party. Read more here.
Unrivaled Brands Posts Consistent California Revenue in Q1 2023
California-based Unrivaled Brands Inc. (OTCQB: UNRV) reported preliminary financial results for the first quarter 2023, showing revenue of $8.7 million and a gross margin of 48%. The bulk of revenue came from Unrivaled’s three retail stores and cultivation facility. Read more here.
Peridot Tree
In a lengthy answering brief filed Monday, the city of Sacramento asked the Ninth Circuit to uphold U.S. District Judge Kimberly J. Mueller’s order abstaining from and pausing a constitutional challenge filed by Kenneth Gay, who owns Peridot Tree Inc, which was denied entry into Sacramento’s equity program for failing to meet residency requirements, as Gay lives out of state. Read more here.
CBD of Denver
CBD of Denver Inc (OTC Pink: CBDD), having begun a restructuring of its operations in fourth quarter of 2022, reported that revenue increased to $113,478 during the quarter from $26, 907 in the previous quarter putting the company back on a growth trajectory that management expects to continue throughout 2023. Read more here.
Minnesota
Minnesota took a step closer to legalizing recreational marijuana for adults after the Democrat-controlled House passed the bill Tuesday. The House approved the measure on a 71-59 vote after a long debate that spanned from Monday night into Tuesday afternoon. Read more here.
John SchroyerApril 25, 2023
The lawsuit names several Cookies employees, including CEO Berner.
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