The Daily Hit is a recap of the top financial news stories for January 20, 2023.
On the Site
Dutchie Sues Akerna Over Access to Pennsylvania Market
Dutchie claims that Akerna, which won the Pennsylvania state contract for its seed-to-sale marijuana inventory tracking program, deliberately erected systemic barriers for competitors like Dutchie so that medical marijuana companies in the state are more likely to use Akerna’s software. Read more here.
Lawsuits Clog the Pipes in Michigan Cannabis Program
For many marijuana operations seeking to open locations in communities across Southeast Michigan, plans are dying on the vine. Dozens of companies remain at loggerheads with city councils over the licensing selection process, and the disputes have been playing out in Michigan’s court system for years. Read more here.
Incoming: Next States to Join the Cannabis Industry?
The U.S. cannabis legalization movement – and thus the industry to which it gave birth – will continue to grow this year and next, almost certainly via a combination of state markets opening, ballot measures forcing cannabis legalization into state law, and state legislatures that decide it’s time to allow medical or recreational marijuana. Read more here.
Agrify to Recalibrate for Positive Cash Flow This Year
Agrify Corp. (Nasdaq: AGFY) said it is trying to “align its resources and growth plan with the current operating environment.” The company said that the measures will help the balance sheet go cash positive by year’s end. Read more here.
Delaware Lawmakers Introduce Longshot Cannabis Legalization Bills
Democratic lawmakers in Delaware have again introduced a pair of bills that would legalize adult-use cannabis. At first blush, the attempt appears likely doomed, primarily because Gov. John Carney has remained steadfastly opposed to legalization. Read more here.
In Other News
Clever Leaves Holdings Inc.
Clever Leaves Holdings Inc. (Nasdaq: CLVR, CLVRW), a multinational operator and licensed producer of pharmaceutical-grade cannabinoids, is winding down all its operations in Portugal as part of its ongoing restructuring initiatives. Under this restructuring plan, the company expects its Portuguese flower cultivation, post-harvest processes, and manufacturing activities to cease in full by the end of the first quarter of 2023. Read more here.
StoneCastle Cannabis Growth Fund
Spartan Fund Management Inc. intends to terminate its StoneCastle Cannabis Growth Fund, effective on or about March 24. Effective today, units of the fund will no longer be available for purchase by new or existing unitholders. Read more here.
Despite falling prices and increasing competition, marijuana business officials across the state, and particularly in Central Massachusetts, still see the cannabis market as primed for opportunity, with operators having to be smarter about the way they operate their marijuana businesses. Read more here.