Daily Hit Archives

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.

StaffJanuary 30, 2023

The Daily Hit is a recap of the top financial news stories for January 30, 2023.

On the Site

IIP

An investor group is suing Innovative Industrial Properties (IIP) (NYSE: IIPR) for not doing proper due diligence in its Kings Garden investment. Investor Michael Mallozzi originally sued IIP in April 2022, when the Blue Orca Capital report came out. He was then joined by investors Alejandro Handal and Stephen Forrester. They are claiming IIP mislead investors, was incompetent, and broke securities laws. In December, IIP asked the court to dismiss the case, but the latest brief asks the court to deny that request to dismiss because IIP was aware that Kings Garden was a Ponzi scheme while telling investors everything was OK. Read more here.

Akerna

Akerna Corp. (Nasdaq: KERN) said on Friday afternoon that it will merge with a bitcoin mining company and offload its software business to POSaBIT Systems Corporation (CSE: PBIT) (OTC: POSAF) for stock and cash, respectively. Akerna will sell its MJ Freeway business units, including MJ Platform and Leaf Data System brands, and Ample Organics to POSaBIT for $4 million in cash. The company said it plans to use the proceeds of the transaction, after expenses, to pay its remaining outstanding accounts payable and pay down any remaining principal balance on its outstanding senior secured convertible notes, in addition to net cash requirements associated with the proposed merger between Akerna and Gryphon. Read more here.

Flora Growth

Flora Growth Corp. (NASDAQ: FLGC) released its revenue guidance for the fiscal year 2023 as the company forecasted a range of $90 million to $105 million. Flora said that its estimates reflect expected organic growth in the House of Brands division and expansion of the Commercial & Wholesale division capabilities. The stock was jumping 18% in early trading on the news and was lately selling at 31 cents. However, it still has a long way to go to regain the Nasdaq’s minimum $1.00 bid price requirement. Read more here.

Ayr Wellness

The acquisition of Chicago marijuana retailer Dispensary 33 went up in smoke amid a cash crunch caused by a steep decline in cannabis stocks and a sharp increase in interest rates. Miami-based Ayr Wellness (OTC: AYRWF) said on Jan. 27 it’s not going to complete the $55 million acquisition of D33, a popular independent marijuana retailer. The deal was announced in November 2021, about a year after Ayr went public. Read more here.

Okay Cannabis

The Chicago restaurant group behind West Town Bakery is teaming up with a new dispensary that’s opening in suburban Wheeling next month, and it’ll be part bakery and cafe, part marijuana shop. The store, called Okay Cannabis, will essentially have a West Town Bakery Cafe & Lounge operating alongside the marijuana shop. The shop will serve Dark Matter coffee, pastries, sandwiches, and cocktails, and it will have an outdoor patio that seats more than 100 people. Instead of staging customers in a waiting area like most dispensaries do, the idea is to let them hang out at the cafe, said Scott Weiner, co-owner of Fifty/50 Restaurant Group. Read more here.

In Other News

IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC)has closed a third tranche of its previously announced non-brokered private placement offering of units of the company. An aggregate of 1,162,000 Units at a price of $1.25 per Unit for aggregate gross proceeds of $1,452,500 was issued and sold under the third tranche of the LIFE Offering. To date, the company has also closed during the first and second tranches for aggregate gross proceeds of $3,024,153. Read more here.

CBD of Denver, Inc. (OTC Pink: CBDD) announced the successful completion of its acquisition of Libra 9 GMBH. The company is in the process of relocating its operations to the Libra 9 campus in Berlin, Germany. Libra 9 has the necessary infrastructure in place to scale up manufacturing and warehousing, enabling the company to immediately expand its sales throughout the rest of Europe. Read more here.

StaffJanuary 12, 2023

The Daily Hit is a recap of the top financial news stories for January 12, 2023.

On The Site

Organigram Earnings Beat

Share prices for Organigram Holdings Inc. (Nasdaq: OGI) (TSX: OGI) were up nearly 8% in early Thursday trading after results illustrated the company’s financial discipline, as it trimmed losses and posted revenues that beat expectations for the first quarter ending November 30, 2022. The Canadian cannabis company reported net revenue of $43.3 million, up 43% from $30.4 million in the same time period last year. Read more here.

Cannabis Sentences Drop

A new report issued by the U.S. Sentencing Commission found that the number of federal cannabis possession sentencings dropped substantially in recent years, from 2,172 in the fiscal year 2014 to only 145 offenders in the fiscal year 2021. For the 70.1% of cannabis possession offenders who received a sentence of imprisonment in the last five fiscal years, the average prison sentence imposed was five months. Unfortunately, the report also noted that prior cannabis possession sentences added to an incarcerated person’s criminal history points resulting in longer sentences. Read more here.

Marijuana M&A Moves

There have been a lot of expectations for consolidation in the cannabis industry, so it seems 2023 is already off to a busy start. Today there are three deals to mention from Akerna, LEEF Brands, and Wee-Cig. Read more here.

Cobb Launches Sunburn

Earlier this month, Brady Cobb rolled out some of the first of 11 dispensaries his company Green Sentry Holdings bought from MedMen (OTC: MMNFF) for $63 million in August. All of the stores will be rebranded as Sunburn Cannabis by the end of the first fiscal quarter. Green Market Report spoke with Cobb at the launch party for the Orlando storefront. Read more here.

In Other News

Lowell Farms Inc. (OTCQX:LOWLF) has retained Canaccord Genuity Corp. to assist in its ongoing review of strategic alternatives. The Board of Directors has formed a strategic alternatives special committee of independent directors to explore, review and evaluate strategic alternatives that may be available to the Company to maximize shareholder value. The Special Committee will evaluate a full range of strategic and financial alternatives, including, but not limited to, one or more of the following: sale, divestiture, acquisition, or merger that may involve all or part of our business or assets, restructuring, recapitalization or any other strategic transaction that may be identified during our strategic review. Other than as described in this news release, the Company has not made any decisions related to strategic alternatives at this time. The Company cautions that there are no assurances that the evaluation of strategic alternatives will result in the approval or completion of any specific transaction or outcome. The Company does not intend to comment further unless and until the Board of Directors approves a specific transaction, concludes its review of strategic alternatives or determines that further disclosure is appropriate or required.

Cannara Biotech Inc. (OTCQB: LOVFF) announced details of its proposal to consolidate all of the issued and outstanding common shares of the Company on the basis of ten (10) pre-consolidation common shares for every one (1) post-consolidation common shares, subject to the approval of shareholders at the upcoming meeting of shareholders to take place on January 25, 2023, as well as TSXV approval. The Company does not intend to undergo a name change in conjunction with the proposed consolidation. Read more here.

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced the opening of its Palm Beach Gardens dispensary as well as the expansion of BlueKudu infused chocolate flavors available on Florida retail menus. Beginning on Friday, January 13, Florida patients will have access to two new flavors of BlueKudu artisanal infused chocolates: espresso dark chocolate and caramel milk chocolate. Both flavors will be available for preorder online, in-store, and via statewide delivery. Read more here.

StaffSeptember 12, 2022

The Daily Hit is a recap of cannabis business news for Sept. 12, 2022.

ON THE SITE

Bummer Summer

Cantor Fitzgerald cannabis analyst Pablo Zuanic published a report on the negative trends impacting the industry. Price compression along with increased competition has made the retail environment a challenging one. Sales in July and August are down in most states and the market dynamics seem to be changing as companies pivot to adjust. The analyst wrote about “worsening growth trends in most of what we call the ‘MSO states’ (IL/PA/FL/AZ/CA/OH/MD) with the exceptions being MA/MI/NV; but in these last three states, prices are down, and we believe retailer economics have worsened.” Zuanic also called noted that wholesalers are finding that their customers are beginning to produce their own brands and specifically called out Colorado where 70% of the flower market share is ‘private label’. Read more here.

FaZe Rain

TPCO Holding Corp. (OTCQX: GRAMF) has tapped one of the most well-known Youtube cohorts on the platform to induct it into its budding brand house. Nordan Shat (aka FaZe Rain), Youtube star and co-founder of the popular esports and entertainment organization, FaZe Clan — along with Quinn “The Wizard”, Yonatan Hagos and Erick Kahn — has partnered with TPCO to launch RCVRY, a premium cannabis brand co-founded by the group and The Parent Company’s Caliva premium cannabis brand. Read more here.

BellRock

BellRock Brands Inc. (CSE: BRCK.U) announced that one of its U.S. subsidiaries is going to purchase Jackson, Michigan-based JRMI27, LLC, a medical and adult use marijuana product manufacturer. BellRock’s flagship brands, Dixie Brands and Mary’s Medicinals already have products in Michigan under a licensing agreement with JRMI27, but the acquisition of the license by the subsidiary of the company, if approved, will offer BellRock a lasting presence in the Michigan market. The company did not disclose the price paid for the company. BellRock has also not published financial information on the company since October 2021. Read more here.

Jim McMahon

Jim McMahon, a longtime medicinal marijuana advocate, is looking to break into the Illinois cannabis market. The legendary former Chicago Bears quarterback is a co-founder of marijuana brand Revenant, which launched in California last summer and expanded into Arizona last week. “We’re looking forward to coming to Illinois,” McMahon, who is in Chicago for a wedding, said in an interview. “We’re in negotiations with different people,” though he declined to name any potential partners. “We want to be nationwide as soon as we can.” Read more here.

Illinois

Illinois’ legalization of recreational marijuana was designed in part to generate revenue by taxing the marijuana trade and in part to balance the scales of justice for minority communities that had been hit hard by heavy-handed pot prosecutions dating back to the “war on drugs” era. There are troubling signs that Illinois’ legalization program, which went into effect in January 2020, is falling short on both fronts. Read more here.

IN OTHER NEWS

PharmaCann Inc., one of the nation’s largest privately held, vertically integrated cannabis companies, today announced the planned acquisition of all four locations of The Clinic, a group of premiere, boutique Colorado marijuana dispensaries. The planned acquisition contemplates rebranding all locations to the popular LivWell brand. Upon completion of the acquisition, LivWell, the state’s leading cannabis brand, will enjoy the largest presence in Colorado with 26 dispensaries in the Centennial State. The Clinic’s dispensary locations are within the Denver metro area and offer award-winning cannabis products and accessories to both recreational customers and medical patients. “PharmaCann’s acquisition of The Clinic’s dispensaries expands our presence in Colorado, bolstering the LivWell brand’s prominence as a locally renowned cannabis brand in the state with strong ties to local communities,” said Brett Novey, CEO of PharmaCann. “We look forward to continuing to bring our world-class cannabis products to the patients and customers of Colorado’s largest dispensary footprint.” Upon completion of the planned acquisition, PharmaCann’s operations will include 26 LivWell dispensaries in Colorado. PharmaCann currently operates 55 dispensaries and nine cultivation and production facilities across eight states.

YourWay Cannabis Brands Inc. (CSE: YOUR) (OTC: YOURF) announced that Jacob Cohen has resigned as Chief Executive Officer of YourWay effective immediately. Mr. Cohen will continue to serve as President of Arizona Operations and as a director on the Company’s board of directors. The company’s Executive Chairman, Jakob Ripshtein, will assume the position of Acting Chief Executive Officer, effective immediately. Read more here.

Icanic Brands Company Inc. (CSE: ICAN) (OTCQB: ICNAF) has completed its previously announced recapitalization transaction dated June 8, 2022 between the company, and certain holders of the 9% secured convertible debentures issued pursuant to a convertible debenture indenture dated June 6, 2019, between LEEF Holdings, Inc. and Odyssey Trust Company as trustee and collateral agent, as amended by the first supplemental indenture between the Company, LEEF, and Odyssey. The Recapitalization Transaction closed which was approved by certain holders of the 2019 Debentures of the Company at a special meeting of Secured Debentureholders on August 8, 2022, and which received final approval from the Supreme Court of British Columbia on August 15, 2022. Read more here.

urban-gro, Inc. (Nasdaq: UGRO) announced that its Board of Directors has approved a new stock repurchase program authorizing the repurchase of up to $2 million of its common stock. The new repurchase program succeeds its prior $8.5 million stock repurchase program which has since been completed. Read more here.

Debra BorchardtJune 14, 2022

The Daily Hit is a recap of the top cannabis business stories for June 13, 2022. Due to technical difficulties, we were unable to publish this recap yesterday.

ON THE SITE

High Times on the Hook for $5M in Back Rent

Harvest Health or rather Trulieve (OTC: TCNNF) since it bought Harvest Health must be heaving a sigh of relief that it’s High Times on the hook for the rent at Geary St. in San Francisco. Before it was acquired Harvest Health had tried to quickly jump into the San Francisco market by signing numerous agreements. One of them was with Alexis Bronson from the Have A Heart 2 CA LLC as a social equity licensee for a dispensary at a prime shopping spot on the famous Geary Street. Read more here.

Ayr Wellness Kicks Off New Jersey Rec Sales this Week

Ayr Wellness (OTC: AYRWF) will kick off its adult-use sales in New Jersey this Wednesday June 16th at three dispensaries. Ayr’s adult-use dispensaries are in Woodbridge, Union, and Eatontown, all within Central New Jersey, a region of 3.4 million people. Ayr’s adult-use stores represent 3 of 5 adult-use stores in this highly populated region. Ayr currently operates its New Jersey dispensaries under the Garden State Dispensary banner. Read more here.

RIV Capital Preps for New York Adult Use Sales

RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) reported its financial results for the fourth quarter and fiscal year ending March 31, 2022. For the fourth quarter Riv Capital reported a net loss of $17 million versus last year’s net loss of $21 million for the same time period. The company had an operating loss in the fourth quarter of $2 million. Riv said the loss was primarily driven by an increase in the provision for expected credit losses on interest and royalty receivables. Read more here. Read more here.

Measuring Psychedelic Investing Risk

Biotechnology is always a dicey business to create, run, and make profitable. Psychedelics add a difficulty factor of 10 to that equation. Currently, there are many psychedelic companies still working their compound through clinical trials—with no actual product to market and sell for years. Much of the real success of any psychedelic business hinges on the completion of clinical trials and Food and Drug Administration (FDA) approval, which takes serious time and money and is never guaranteed. Read more here.

IN OTHER NEWS

The Scotts Miracle-Gro Company Adds Brian Sandoval to Board

The Scotts Miracle-Gro Company (NYSE: SMG), marketers of branded consumer lawn and garden as well as hydroponic and indoor growing products, announced today that The Honorable Brian Sandoval has been named to its Board of Directors. Governor Sandoval served two terms as the 29th Governor of the State of Nevada, having held office from 2011 to 2019. He is currently the President of the University of Nevada, Reno, a position he has held since 2020. Read more here.

Chemistree Technology Inc.

Chemistree Technology Inc. (CSE: CHM) and (OTCQB: CHMJF), provided Notice of the semi-annual payment of interest on its convertible debentures maturing March 29, 2024. Pursuant to the Supplemental Indenture entered into with the Debenture Trustee, Odyssey Trust Company, effective January 17, 2022, the Company will pay the interest due on June 30, 2022 – via the issuance of common shares in lieu of payment in cash. Read more here.

StaffJune 7, 2022

The Daily Hit is a recap of the top cannabis business stories for June 7, 2022.

ON THE SITE

New Jersey Cannabis Sales Fire Up Expansion

With just 12 dispensaries open in the state, New Jersey still managed to ring up $24 million in sales in the first month. That’s roughly $5 million a week. According to the New Jersey Cannabis Regulatory Commission, “On the first day of adult-use sales in New Jersey, 12 participating dispensaries sold cannabis and cannabis products to 12,438 recreational cannabis customers for a total gross sale of nearly $1.9 million.” BDSA expects New Jersey to be the third-largest contributor to overall US sales growth by 2026 and is forecast to generate annual revenue of $2.3 billion in total legal cannabis sales. Read more here.

Cannaccord Leads Dealmakers

Cannabiz Media recently did a deep dive into the deal makers to see which advisors were leading the pack and Canaccord Genuity (OTC: CCORF) comes out on top. Of the 137 recognized deals, Canaccord Genuity is the financial leader advising on 22 of the 137 deals. ATB Capital Markets was a distant second with 10 deals. Canaccord is also the leader on both the buy and sell-side components. Canaccord is listed as having advised on$8.1 billion in deals. Read more here.

When Politics and Psychedelics Collide

Another sure sign that psychedelics are gaining momentum in mainstream medicine is how government officials and lawmakers are reacting to the surge of interest from the public. Read more here.

IN OTHER NEWS

AIkido Pharma Inc.

Shalom Auerbach, a significant stockholder of AIkido Pharma Inc. (NASDAQ: AIKI) beneficially owning approximately 3.4% of its common stock, today issued the following letter to members of the AIkido Pharma Inc. Board of Directors. Read more here.

Simply Better Brands Corp., Jones Soda Co.

Simply Better Brands Corp. (TSX Venture: SBBC) (OTCQB: PKANF) and Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) announced that due to current market conditions, SBBC and Jones have terminated the previously announced letter of intent. “We are disappointed that due to current market conditions we are unable to move forward with our intended transaction at this time. The Jones Soda brand is one we felt confident would add tremendous value to our existing platform and ultimately be accretive to shareholder value. We wish Jones management and their board much success in their future,” says Kathy Casey, CEO of Simply Better Brands. Read more here.

Delta 9 Cannabis Inc.

Delta 9 Cannabis Inc. (TSX: DN) (OTCQX: DLTNF) announced the price of its previously announced marketed public offering of units of the company. Pursuant to the offering, the company intends to issue units at a price of $0.22 per unit for aggregate gross proceeds of approximately $2,000,000. The offering is led by Research Capital Corporation as sole agent and sole bookrunner. Read more here.

Safe Harbor Financial, Solar Cannabis Co.

SHF, LLC, dba Safe Harbor Financial, a financial services provider to the cannabis industry, today announced the closing of a $5 million senior secured loan to Solar Cannabis Co., an established vertically-integrated cannabis operator headquartered in Somerset, Massachusetts. Solar Cannabis will use the funds to further accelerate its growth. This transaction marks the evolution of Safe Harbor’s senior secured lending program, which was established to provide loans to cannabis operators in states in which cannabis is legal. Read more here.

Stem Holdings, Inc.

Stem Holdings, Inc. (OTCQX: STMH CSE: STEM), a vertically-integrated cannabis and hemp company with state-of-the-art cultivation, processing, extraction, retail, and distribution operations, announces that the company is seeking the approval of the holders of the C$3,687,050 principal amount of convertible debentures to reprice the convertible debentures. The convertible debentures presently mature on June 27, 2022, and September 14, 2022. Read more here.

Neon Bloom, Inc., Bazelet Health Systems

Neon Bloom, Inc. (OTC: NBCO): Bazelet Health Systems™, a wholly owned subsidiary of Neon Bloom, announced the endowment of a program known as ‘cERI’ (cannabis Education & Research Initiative). The program encompasses the donation by Bazelet of federally legal cannabis genetics (genetically producing 0% THC) to DEA registered research entities, such as the National Center for the Development of Natural Products at the University of Mississippi and the broader qualified scientific community wishing to conduct, disseminate and support rigorous scientific research on the clinical effects of cannabis. Read more here.

Green Check Verified, Canix

Green Check Verified (GCV), a fintech provider of compliant cannabis banking solutions and services, today announced an official integration with Canix, one of the cannabis industry’s most comprehensive seed-to-sale enterprise resource planning (ERP) solutions. Canix serves both large commercial operations and single owner operators, and maintains over 2,000 cannabis licenses on its platform. This integration will enable GCV’s partners to seamlessly sync sales with Canix while greatly enhancing their data visualization capabilities.

StaffMay 31, 2022

The Daily Hit is a recap of the top business stories in the cannabis industry for May 31, 2022.

On the Site

Cansortium

Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF) announced interim unaudited financial results for the first quarter ending March 31, 2022. Cansortium said that revenue increased 30% to $19.7 million compared to $15.1 million last year and it was higher than the fourth quarter’s revenue of $14.7 million. The company did not release any income or loss figures. Read more here.

Entourage

On Monday Canadian cannabis company Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) announced its financial results for the first quarter ending March 31, 2022. Entourage reported total revenue of $15.8 million, up 17% sequentially over the fourth quarter of 2021. The reported loss was trimmed to $8.7 million. Read more here.

Khiron

Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) announced today its financial results for the quarter ended March 31, 2022, with revenues increasing 65% to $4.6 million and a 28% sequential increase from the fourth quarter. The company’s net loss was essentially flat at $4.5 million. Read more here.

HYTN

HYTN Innovations Inc. (CSE: HYTN) reported certain highlights from its second-quarter financial statements ending March 31, 2022. Hytn reported revenues of $255,461 for the three months ending March 31, 2022. the company has a cash position of over $2.2 million, as of March 31, 2022, and $2.2 million in property, plant, and equipment assets, as of March 31, 2022, including all equipment related to the company’s purpose-built, ISO 9001:2015 Certified and Health Canada-licensed Kelowna manufacturing facility. The company noted it had no debt as of March 31, 2022. Read more here.

Allman Brothers

Southern rock band the Allman Brothers Band has become the latest music group to create a cannabis brand. The Allman Brothers Band is launching a strain of flowered in Illinois called Chocolate Chunk. It is an indica dominant strain available in 3.5g and will be exclusively sold at Verilife dispensaries, which are owned by Pharmacann. Read more here.

In Other News

Urban-gro

urban-gro, Inc. (Nasdaq: UGRO) announced that it has signed an agreement with E29 Labs, Inc., (“E29 Labs”) a black, woman-owned commercial cannabis production company, to provide full architecture, engineering and design services for their application to build an approximately 100,000 square foot cannabis production facility located in New York State. Upon securing a license, the agreement provides that urban-gro will be E29 Labs’ design-build partner to complete the build out of its facility. Read more here.

Harborside

Harborside Inc. (CSE: HBOR) (OTCQX: HBORF) provided details of the integration of its operations with those of the three companies acquired by the Company since the third quarter of last year. On July 2, 2021, the Company acquired Sublimation Inc., which was followed by the acquisition of UL Holdings Inc. on March 1, 2022 and LPF JV Corporation on April 4, 2022. Read more here.

StaffMay 17, 2022

The Daily Hit is a recap of the top cannabis business stories for May 17, 2022.

On the Site

Halo

Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) announced its financial results for the first quarter ending March 31, 2022, as revenue declined 23% to $7.6 million versus revenue of $9.9 million for the same time period in 2021. Halo said that sales were impacted by a significant downturn in both the California and Oregon markets. The company also said that the flower category, which is a leading indicator, sharply declined, with sales falling by 23% in California and 26% in Oregon year over year. Halo also reported a net loss of $13 million in the quarter, which increased over last year’s net loss of $9 million. Read more here.

Greenlane

Greenlane Holdings, Inc. (NASDAQ: GNLN) reported financial results for the first quarter ending March 31, 2022 as revenue increased 37% to $46.5 million versus last year’s $34.0 million for the same quarter. However, it was a dramatic fall from the fourth quarter’s revenue of $56 million and it missed the Yahoo Finance average analyst estimate for sales of $51 million. Read more here.

Akerna

After several lackluster quarters, cannabis software company Akerna (Nasdaq: KERN) announced that it has hired JMP Securities to assist in evaluating strategic alternatives as the company and the board seeks to maximize stakeholder value. Akerna also reported that CFO John Fowle is leaving to pursue other interests, effective May 17. The Board has appointed Dean Ditto as Akerna’s interim CFO. Read more here.

Green Goddess

Green Goddess Supply, a “cultivation to consumption” cannabis technology lifestyle brand offering a line of high-quality products to grow, store, prep and consume hemp flower and cannabis products has launched a crowdfunding campaign. The company was initially funded by management and “friends and family.” With this offering, the company will gain access to over 750,000 investors via the StartEngine Regulation CF platform, to showcase its patented cannabis home grow system. Read more here.

In Other News

InterCure

InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) announced its financial results for the first quarter of 2022 and is pleased to provide shareholders with a business update. The company had quarterly revenue of $34 million (NIS 87 million), almost three times greater than Q1 2021 ($13 million or NIS 33 million) and up 9% sequentially compared to the prior quarter. Net income of $6 million (NIS 15 million) for the Q1 of 2022 compared to $2 million (NIS 4 million) in Q1 of 2021 Seventh consecutive quarter of positive cash flow from operations. Read more here.

iPower Inc.

iPower Inc. (Nasdaq:IPW) announced financial results for its fiscal third quarter ended March 31, 2022. Total revenue increased 74% to $22.8 million. Net income increased significantly to $1.2 million or $0.04 per share as compared to $(0.01) per share for Q3 2021. Total revenue in the fiscal third quarter of 2022 increased 74% to $22.8 million compared to $13.1 million for the same period in fiscal 2021. The increase was driven by greater product sales to the Company’s largest channel partner as well as strong demand for iPower’s ventilation products, commercial fans and shelving products. Read more here.

StaffMay 16, 2022

The Daily Hit is a recap of the top cannabis business stories on May 16, 2022.

On The Site

Charlotte’s Web

Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) reported financial results for the first quarter ending March 31, 2022 as net revenue fell 17% to $19.4 million versus $23.4 million for the same time period in 2021. Sales also fell sequentially from the fourth quarter’s revenues of $24.8 million and greatly missed the estimates from Yahoo Finance for sales of $27 million. Charlotte’s Web said the decrease was partly due to a temporary closure of its production and shipping terminal in January after a local wildfire in Boulder County. Read more here.

Tilt

TILT Holdings Inc. (NEO: TILT) (OTCQX: TLLTF) reported its financial and operating results for the three months ended March 31, 2022. Tilt’s revenue was $42.4 million compared to $46.8 million in the year-ago period. However, revenue fell dramatically from the fourth quarter which was $54 million. Tilt said the decrease was primarily driven by lower sales volume in its inhalation business related to the timing of purchases by certain large customers, as well as price compression for the company’s bulk and house-branded wholesale cannabis products. Read more here.

Planet 13

Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) announced its financial results for the three-month period ended March 31, 2022, with revenues rising 8% to $25.7 million from last year’s $23.8 million. However, Planet 13’s revenue fell sequentially from the fourth quarter’s $29 million. According to Yahoo Finance, three analysts cover the company and the average estimate for revenues was $46 million, so the company missed that by a mile. Read more here.

Arcview

Arcview Capital today announced the launch of its equity crowdfunding platform which is expected to go live by the end of the second quarter. The platform is currently accepting applications and will focus on cannabis and other adaptogenic plant-based businesses like psychedelic plant medicines. Read more here.

Auxly

Auxly Cannabis Group Inc. (TSX: XLY) (OTCQX: CBWTF) released its financial results for the three months ended March 31, 2022. Auxly reported net revenues rose 147% to $22.6 million versus $9.2 million during the same period in 2021. Revenues fell sequentially from the fourth quarter’s revenue of $29 million. Auxly admitted it had lower winter yields at Auxly Leamington and hardware and packaging shortages due to supply chain disruptions. The company said believes that those challenges are largely behind it, and is very encouraged by yield and overall product quality improvements that it has seen at Auxly Leamington, which it believes will better equip Auxly to meet the demand for its flower and pre-roll products. Read more here.

Col-Care

Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) reported financial results for the first quarter ended March 31, 2022. Revenue for Columbia Care fell sequentially by 11% to $123 million from $139 million in the fourth quarter. It was a 43% increase over last year’s revenue of $86 million for the same time period. It missed the Yahoo Finance average analyst estimates for revenue of $138 million. Read more here.

Flower Power

In the cannabis market, Flower continues to reign supreme as the dominant category in every market, though according to a recent Headset report, market share is declining in both the US and Canada. Be that as it may, cannabis flower is likely to hold its top spot as the consumer favorite for some time to come as the least processed and most versatile (albeit also the most susceptible to commoditization and price compression) of all categories. Headset’s report looks at changes in market share over time, segments, pricing, demographics, and other metrics of performance in the Flower category. Data was collected from real-time sales reporting by participating cannabis retailers via their point-of-sale systems. Read more here.

In Other News

The Parent Company

TPCO Holding Corp. (NEO: GRAM.U) (OTCQX: GRAMF) announced its financial results for the quarter ended March 31, 2022. Net sales fell 17% to $33.2 million and the net loss and comprehensive loss were $33.5 million. Sales also fell from the fourth quarter’s $39 million. The company said it would cut costs by 20% over the year. Conference call in the morning. Read more here.

Sundial

Sundial Growers Inc. (NASDAQ: SNDL) reported its financial and operational results for the first quarter ended March 31, 2022. Net revenue for the first quarter of 2022 of $17.6 million, including one day of revenue on the acquisition of Alcanna, an increase of 78% over the first quarter of 2021. Net loss was improved to $38.0 million for the first quarter of 2022 compared to a $134.4 million net loss in the first quarter of 2021, an improvement of 72%. Read more here.

CV Sciences

CV Sciences, Inc. (OTCQB:CVSI) announced its financial results for the quarter ended March 31, 2022. Revenue of $4.4 million for the first quarter of 2022, compared to $4.8 million for the first quarter of 2021. Read more here.

StaffMay 11, 2022

The Daily Hit is a recap of the top cannabis business stories for May 11, 2022.

ON THE SITE

Ascend Wellness Holdings

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) reported its financial results for the first quarter ending March 31, 2022. Total revenue of $101.2 million decreased 0.8% quarter-over-quarter and increased 33.4% year-over-year. Ascend stock jumped over 5% in trading to close at $3.20. Ascend also reported that it had a net loss of $27.8 million or a loss of $0.16 per basic and diluted common share during the quarter, compared to a net loss of $16.5 million in the fourth quarter of 2021. Read more here.

MedMen Surrenders Assets to Ascend Wellness

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) finally agreed to close the deal to sell its New York assets to Ascend Wellness (OTC: AAWH). The two companies had initially agreed to the transaction, but then MedMen was accused of having “buyer’s remorse” by Ascend when it tried to pull out of the deal. The two companies then engaged in a nasty legal battle with MedMen accusing Ascend of greasing politicians‘ hands in the state. Read more here.

Harborside Inc. and Pelorus Equity Group

Pelorus Equity Group completed the second and final tranche of its previously announced $77.3M non-dilutive real estate debt financing with Harborside Inc. (CSE: HBOR) (OTCQX: HBORF). The initial funding included three individual loans to Harborside, Urbn Leaf Holdings Inc., and Loudpack JV Corporation with a second tranche made available upon the final closing of the three-way merger. The proceeds were used primarily to retire certain existing loans and provide additional working capital. Read more here.

Agrify Beats Revenue Estimates

Agrify Corporation (Nasdaq: AGFY) announced financial results for the first quarter ended March 31, 2022, as revenue increased 271% to $26 million for the first quarter versus $7 million for the prior-year period. This was also higher than Agrify’s fourth-quarter revenue of $25.3 million and beat the Yahoo Finance average analyst estimate for revenues of $25..3 million. The stock price was up by over 6% in early trading to lately sell at $2.60. Read more here.

Goodness Growth

Goodness Growth Holdings, Inc. (CSE: GDNS) (OTCQX: GDNSF) reported financial results for its first quarter ended March 31, 2022. Goodness Growth had total revenue in the first quarter of $15.6 million, an increase of 18.2% as compared to the same time period in 2021. The net loss in the quarter was $14.6 million versus a net loss of $6.9 million in the first quarter of 2021. Read more here.

GMR Women’s Leadership Awards: Narim Jarrous

Narmin Jarrous manages operational planning and positioning for all developmental strategies within the Exclusive Brands organization, while also leading the teams’ Social Equity efforts, determined to lift up communities that have been disproportionately impacted by the prohibition of marijuana. Read more here.

Psychedelic Medicine Patents

One of the most important aspects of the psychedelics business—and one that is becoming more contentious—is about securing and protecting the patent for the specific molecule or synthetic that a psychedelics company is banking on because it can essentially protect the investment of millions of dollars a startup spends on setting up and running clinical trials, hiring expensive medical staff and other business development expenses. Read more here.

Targeting Female Cannabis Brands (VIDEO)

On April, 28, 2022, the Green Market Report hosted its first Women’s Summit in New York City. This panel was titled “Targeting Female Brands” and featured a stellar lineup of successful women including Cannaclusive Founder Mary Pryor, Humble Boom Founder Solanje Burnett, CMO of Trube Tokes Kymberly Byrnes and moderated by Politico’s Mona Zhang. More here.

IN OTHER NEWS

Harborside Inc.

Harborside Inc. (CSE: HBOR) (OTCQX: HBORF), a California-focused, vertically integrated cannabis enterprise, today announced it opened two new retail stores in California, bringing its total retail store count to 13, with a new Harborside-branded store in San Francisco, and a new Urbn Leaf-branded store in La Mesa, located in San Diego County. Read more here.

FSD Pharma Inc.

FSD Pharma Inc. (NASDAQ:HUGE) (CSE:HUGE) (FSE:0K9A), a life sciences holding company dedicated to building a portfolio of assets and biotech solutions, has closed the sale of non-core assets for $16.4 million. The company has sold its former cannabis processing facility, located in Coburg, Ontario, which it acquired for $5.5 million in November 2017. The property includes a 26.1-hectare parcel of land and a 50,800 square meter building. Read more here.

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