Debra BorchardtDecember 5, 2023
The company is positioning itself to become profitable again.
Hawthorne Archives - Green Market Report
Debra BorchardtDecember 5, 2023
Adam JacksonNovember 2, 2023Hawthorne's break-even milestone fuels the lawn leader's cannabis ambitions.
StaffAugust 22, 2023
The Daily Hit is a recap of the top financial news stories for Aug. 22, 2023.
On the Site
Verano Sues Alabama Marijuana Commission Over License Loss
Chicago-based Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) on Monday followed through with its threat to sue Alabama marijuana regulators, after a state commission voided a medical cannabis business license that had been granted to the multistate operator in June. Read more here.
Lawsuit Between Scotts’ Hawthorne, Luxx Lighting Heats Up
The battle between hydroponic heavyweight Hawthorne, a subsidiary of Scotts Miracle-Gro (NYSE: SMG), and Luxx Lighting is heating up. The relationship between the two companies began in 2021 when Hawthorne agreed to buy Luxx Lighting in a deal valued at $215 million. Read more here.
StateHouse, Pelorus Ink Major Service Agreement for Humboldt Facilities
California-based cannabis company StateHouse Holdings Inc. (CSE: STHZ) (OTCQX: STHZF) has announced an 18-month managed service agreement with Pelorus Capital Group. Under the deal, StateHouse will be taking over operations at the Willow Creek facility in Humboldt County, commonly referred to as the “Humboldt Facilities.” Read more here.
Leef Brands Sees 14.6% Sales Boost in Q2
California-based Leef Brands Inc. (CSE: LEEF) (OTC: LEEEF) reported Q2 net sales of $9.3 million, a rise of 14.6% versus the previous year. Profit figures also rose, with a gross profit of $2.9 million, a year-over-year growth rate of 8.2% for the quarter. Read more here.
In Other News
Humble & Fume
Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) bolstered its expansion plans with an additional $4 million investment by Green Acre Capital Distribution Corp. into HC Solutions Holdings Inc., a joint venture company established by Humble and Green Acre. The focus of this venture continues to be the strategic distribution of cannabis products across the United States, with a primary focus on California. Read more here.
CuraScientific Corp.
CuraScientific Corp. (OTCPINK: CSTF) reported revenue of $441,000 for the three months ended June 30, up significantly from the $9,000 reported a year ago. The company also reduced convertible notes from $1.2 million in the period ended June 30, 2022, to $335,000 for the latest period. Read more here.
StaffAugust 2, 2023
The Daily Hit is a recap of the top financial news stories for Aug. 2, 2023.
On The Site
Unlicensed Cannabis Sales Overrun State’s Legal Program, Strangling Tax Revenue
Legal cannabis sales and tax revenues in New York are at a fraction thus far of what was originally projected, due in large part to the thriving unlicensed market, which one attorney estimated was upwards of 36,000 businesses statewide. Read more here.
MariMed Ends Q2 in the Red Despite Increasing Revenues
Massachusetts-based MariMed Inc. (CSE: MRMD) (OTCQX: MRMD) posted a $900,000 loss for its second quarter of the year, despite increasing revenues year-over-year by $3.5 million, the company reported Wednesday. Read more here.
Oklahoma Supreme Court to Decide Medical Marijuana Permit Fee Case
The Oklahoma Supreme Court this week heard arguments on a lawsuit filed last month by a coalition of cannabis companies who argue that a large business fee increase, which went into effect in June, is illegal because it’s tantamount to a tax hike. Read more here.
New Mexico Asks Court to Halt Sales at Rulebreaking Dispensary
New Mexico cannabis officials have asked a district court to halt sales at a licensed marijuana shop they say has been illegally selling out-of-state marijuana and manufacturing its own products without proper permits. Read more here.
Bill Reintroduced to Prep Federal Government for Marijuana Legalization
In another sign that some in Washington, D.C. are thinking ahead to when the cannabis industry becomes federally legal, Democratic U.S. Sen. John Hickenlooper of Colorado just last week reintroduced a bill designed to get the federal bureaucracy ready to adjust properly for when legalization occurs. Read more here.
Hawthorne’s Sales Slump Drags Scotts Miracle-Gro’s Q3 Profits Down
Lawn and garden products maker Scotts Miracle-Gro Co. (NYSE: SMG) reported lower-than-expected third quarter earnings ending July 1, 2023, mainly due to a sharp decline in its hydroponic business segment, Hawthorne. Read more here.
Turning Point Nets $9.9 Million in Q2 Revenue Beat
Smoking accessories dealer Turning Point Brands Inc. (NYSE: TPB) saw better-than-expected second-quarter financial results ending June 30, 2023, buoyed by rising legal consumption as more state markets open. Read more here.
California Cannabis Farmers Hoping Supreme Court Will Hear Corruption Cases
A small cadre of cannabis farmers from the heart of California’s Emerald Triangle, who have been trying for years to expose local corruption through court cases, are now placing their last hopes in the U.S. Supreme Court via a petition that was filed on July 12 and another that their attorney said should be filed by Friday this week. Read more here.
In Other News
Minnesota
While many other localities around Minnesota are busy banning cannabis commerce or installing moratoriums on licensing, Minneapolis has taken the opposite approach and announced a “permissive” policy for marijuana retailers. Read more here.
Arizona
There are now 26 social equity licenses available in Arizona, licenses aimed at people from those communities, which are available by lottery. But a new investigation from the Arizona Center for Investigative Reporting shows many of those licenses are now owned by corporate dispensaries instead. Read more here.
New York
New York City is now ranked as the top city in the world when it comes to marijuana consumption, according to a recent study. Read more here.
StaffMay 4, 2023The Daily Hit is a recap of the top financial news stories for May 4, 2023.
On the Site
Scotts Miracle-Gro Makes Positive Comments On Cannabis
The challenges presented by the cannabis industry are harder to combat than those presented by COVID-19, at least according to the CEO of Scotts Miracle-Gro. During Scotts (NYSE: SMG) latest earnings call, CEO Jim Hagedorn made some fairly positive comments about the cannabis industry, while also delivering an unvarnished assessment of the challenges. Read more here.
Tilray’s SweetWater Inks Mercedes-Benz Stadium Deal
Tilray Brands Inc. (Nasdaq: TLRY) subsidiary SweetWater Brewing Company signed a new partnership with Mercedes-Benz Stadium and the opening of two new branded bars at Atlanta’s premier sports and entertainment venue, which is home to the NFL’s Atlanta Falcons and Atlanta United of Major League Soccer. Read more here.
Green Thumb Industries Agrees to 50% Wage Hike Following Worker Strike
Following an employee strike in Illinois that began just one day before the cannabis holiday of April 20, workers at two facilities owned by Green Thumb Industries have won a 50% wage increase, according to a press release on Tuesday from the International Brotherhood of Teamsters. Read more here.
Alaska ‘Bud & Breakfast’ Cannabis Scam Netted Couple $700k, Feds Say
A married couple from a small town in the far interior of Alaska has been charged with wire fraud in connection with a sham marijuana tourism business that they never intended to launch, federal prosecutors said in a recently unsealed indictment. Read more here.
Earnings:
• Revenue, Losses Down for Jones Soda in First Quarter
• Simply Better Brands Revenue Jumps 254%
In Other News
Eastern Band of Cherokee Indians
In a reverse decision, the Eastern Band of Cherokee Indians’ Tribal Council withdrew its backing of a $64 million loan to support the Tribe’s medical cannabis program. During a meeting on Thursday, Principal Chief Richard Sneed vetoed the council’s initial approval in a multipage letter and called for an “immediate need for an accounting of the money spent to date.” Read more here.
Oregon
Oregon Secretary of State Shemia Fagan will continue in her official duties until Monday, May 8, at which point Deputy Secretary Cheryl Myers will take on oversight of the agency until a new Secretary is appointed by the governor. Fagan resigned after an ethics investigation was announced related to her consulting role for a cannabis company. Read more here.
Debra BorchardtMay 4, 2023
Hagedorn says cannabis is "way harder than COVID."
Adam JacksonMay 3, 2023
The company said it plans to provide an updated full-year outlook in June, after the spring season.
Debra BorchardtFebruary 23, 2023
RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) settled its conflict with JW Asset Management LLC (JWAM) related to the company’s acquisition of New York medical cannabis operator Etain. JWAM had complained about the purchase price paid for Etain by Riv Capital.
Etain Settlement
RIV Capital has repurchased for cancellation all RIV Capital Class A common shares currently owned or controlled by JWAM and its affiliates, amounting to 33,733,334 shares, for an aggregate purchase price of $19,625,000. RIV Capital also reimbursed certain legal expenses incurred by JWAM as part of its application and related matters in the amount of $375,000.
RIV Capital funded such amounts with cash on hand. As part of the settlement, JWAM and its affiliated funds have also withdrawn their requisition for a special meeting of the company’s shareholders currently scheduled for June 6, which meeting will be canceled by the company.
JWAM sought a remedy requiring the JWAM Shares to be repurchased by the company at a price of C$1.65 (US$1.22) per share. This math works out to US$0.58 per share.
“I am glad to have reached a mutually beneficial agreement that enables both parties to move forward in a positive manner,” said Mark Sims, director, president, and chief executive officer of RIV Capital. “In our view, our share price simply does not reflect the intrinsic value of our unique assets – industry-leading liquidity, reputable strategic partner, and vertical license in New York.
“Our board of directors, on the recommendation of the Conflicts Review Committee, which is comprised solely of independent directors, determined that this settlement is in the best interest of the company, as it mitigates the risks associated with the application and the remedies sought by JWAM,” Sims continued. “Now that these claims have been resolved, we can focus on continuing to operationalize New York, in addition to exploring a range of opportunities inside and outside of New York as we seek to build our platform going forward.”
Hawthorne Settlement
The Hawthorne Collective Inc. owned by Scott’s Miracle-Gro (NYSE: SMG), also said it settled its conflict with JWAM and Jason Wild.
According to the statement, Jason Wild and JWAM have agreed, among other things, not to take any action that would interfere with The Hawthorne Collective’s agreements with the company or any rights set forth in those agreements.
Debra BorchardtFebruary 1, 2023
Despite industry-wide challenges, CEO still believes in the promise of the cannabis sector.
Debra BorchardtFebruary 1, 2023
Hydroponics brand Hawthorne continues with weakened sales.
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