The Daily Hit is a recap of the top financial news stories for March 2, 2023.
On the Site
New York Doubling Social Equity Cannabis Retail Licenses to 300
New York marijuana regulators announced at the Thursday meeting of the state Cannabis Control Board that they will be doubling the number of “justice-involved” retail permits, from 150 to 300. The executive director of the New York Office of Cannabis Management said the change was due in part to many qualified applicants paying for their own retail locations instead of relying on the state to provide shops. Read more here.
Consternation in New York Over Social Equity Loan Uncertainty
Mixed messaging, changing policies, and a lack of clarity on how exactly the state of New York intends to finance scores of social equity cannabis shops has several marijuana industry stakeholders in the Empire State crying foul. Read more here.
Florida Adult-Use Marijuana Campaign Halfway on Signature Gathering
A campaign led by Florida cannabis giant Trulieve to legalize adult use marijuana in the state is nearing the halfway mark in its signature gathering to qualify for the 2024 ballot. The campaign – Smart & Safe Florida – has collected more than of the 891,589 voter signatures it needs to make the general election ballot. Read more here.
Pervasip to Spin Out Artizen Cannabis
Pervasip Corp. (OTCPK: PVSP) is spinning off its cannabis company, Artizen, after struggling to get the financing it needed. Pervasip acquired Artizen in September 2021 when its share prices were higher and the company secured a $3 million preferred equity financing on fixed price conversion terms. However, CEO German Burtscher said in a letter to shareholders that an equity infusion was still needed and hoped that by spinning Artizen out to the OTC Market Place, it could justify a valuation of $50 million. Read more here.
‘Days of Fat Margins And Easy Money’ Are Over, Says GTI Chief
The Green Rush is all but over, proclaimed Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) CEO Ben Kovler this week in the company’s fourth-quarter earnings call. Kovler said more industry contraction is on the way, despite market forecasts that project continuing growth. Read more here.
In Other News
Pelorus Equity Group
The Pelorus Fund, a privately held mortgage real estate investment trust with specialty lending to cannabis-use and cannabis-related properties, recorded two new originations in the fourth quarter, for a total value of $63 million, taking the total portfolio of loan commitments from $301 million to $372 million, for 23.6% growth for the quarter. Read more here.
Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF), a vertically integrated, multistate cannabis company, closed a non-brokered private placement offering of 30 million units of the company at a price of $0.10 per unit for aggregate gross proceeds of $3 million. The company said it will use the net proceeds for general corporate and working capital purposes. Read more here.