StaffJuly 31, 2023
The Daily Hit is a recap of the top financial news stories for July 31, 2023.
On the Site
Columbia Care, Cresco Labs Sack $2 Billion Megadeal
After months of swirling doubt and some bought time, Cresco Labs (CSE: CL) (OTC: CRLBF) and Columbia Care (Cboe/NEO: CCHW) (CSE: CCHW) (OTC: CCHWF) have mutually agreed to terminate their planned $2 billion merger, according to announcements from both companies Monday. Read more here.
Eaze Hit with New Lawsuit Alleging Fraud in Green Dragon Merger
A two-year-old acquisition deal of multistate operator Green Dragon by California-based Eaze is now the subject of a fraud lawsuit filed by the former owners of Green Dragon, who say the deal wouldn’t have gone through if Eaze had been honest about its precarious financial situation. Read more here.
MariMed Sues Nevada Cultivator Over Failed $2.4M Deal
Massachusetts-based multistate operator MariMed (OTCQX: MRMD) is suing a Nevada cultivation company, The Harvest Foundation LLC, claiming the owners lost their state-issued licenses to grow cannabis before a multimillion-dollar sale was finalized. Read more here.
Seven Unlicensed Cannabis Shops Shuttered in Upstate New York
Officials from the New York Office of Cannabis Management, the attorney general’s office, and Gov. Kathy Hochul’s office cooperated on the raids, which took place at locations operating under the “I’m Stuck” brand, owned by David Tulley who has been selling cannabis without a permit “since at least early 2022.” Read more here.
New York’s First Recreational Marijuana Shop Sold $12 Million in Six Months
Housing Works, the first legal adult-use marijuana shop to open for business in New York, announced Monday that it sold $12 million in cannabis in its first six months of operations. It opened its doors just two days before New Year’s Eve. Read more here.
Michigan’s Largest Marijuana Dispensaries by Retail Location
Michigan’s marijuana industry is among the most competitive industry in the state. With basement-low wholesale prices, the industry is becoming increasingly more vertically-integrated. The most profitable way to do business in weed is for growers to be sellers, realizing margins on both sides of the business. Read more here.
In Other News
Theraplant
One of Connecticut’s four active cannabis producers has new ownership following foreclosure proceedings, according to a filing with the Securities and Exchange Commission. The new owners of Theraplant is a company called NewCo, which is a subsidiary of East Hampton N.Y.-based DXR Holdco. Read more here.
4Front Ventures Corp.
4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) entered into a definitive agreement with its senior secured lender, LI Lending LLC, to extend the maturity date, reduce the interest payable, and expand the third-party financings available under the Dec. 17, 2020 Amended and Restated Loan and Security Agreement. Under the Extension, the lender has extended the maturity date of the loan to May 1, 2026, and reduced the interest payable to 12.0% per year, payable monthly. Read more here.
John Schroyer
Executive Spotlight: Alex Levine, Co-CEO, Green Dragon