Adam JacksonOctober 2, 2023
Tilray's acquisition of HEXO opened up new dialogue.
HEXO Archives - Green Market Report
Adam JacksonOctober 2, 2023Adam JacksonJuly 26, 2023The company expects to generate positive adjusted free cash flow in fiscal year 2024.
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
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.
Debra BorchardtJune 20, 2023
At least five cannabis companies have recently announced equity deals.
StaffJune 14, 2023The Daily Hit is a recap of the top financial news stories for June 14, 2023.
On the Site
Hexo Shareholders Greenlight Tilray Deal, Company Warns of Possible Default
Canadian licensed cannabis producer Hexo Corp. (TSX: HEXO) (Nasdaq: HEXO) is set to be acquired by Tilray Brands, following a formal sign-off on Wednesday by Hexo shareholders in a near-unanimous vote. If the deal doesn’t go through as planned by the end of the month, Hexo could wind up in default, the company warned. Read more here.
Maryland Regulators Shut Down Cookies Baltimore Over Advertising, Security Breaches
Cookies Baltimore, formally known as MIMD Operating 1 LLC, opened its doors on May 15 and found itself in hot water less than a month later. The court document obtained from the Maryland Cannabis Administration details alleged breaches of both the Cannabis Reform Act and Code of Maryland Regulations. Read more here.
High Tide Revenue Rises, But Company Still in the Red
Canada-based High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) drastically improved its revenue for its second fiscal quarter, which ended April 30, by a whopping 46%, but the company still fell short of profitability, with a $1.6 million net loss. Read more here.
Aurora Cannabis Revenues Rise as Cash Burn Rages
Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) reported total net revenue for its fiscal third quarter was $64 million, which rose sequentially from the second quarter’s revenue of $61.7 million and topping last year’s revenue of $50.4 million. The company attributed the increase to the contribution of $10.8 million from Bevo, which was acquired in August 2022. Read more here.
Aleafia Revenue Increases Slightly Ahead of RWB Acquisition
Aleafia Health Inc. (TSX: AH)(OTCQB: ALEAF) delivered its audited financial results for the quarter and fiscal year ending March 31 in Canadian dollars. During the fourth quarter, total revenue increased 9% to $11.7 million from $10.7 in the 2022 fourth quarter. Read more here.
In Other News
Pineapple
Pineapple Inc. (OTC Pink: PNPL), a legal cannabis industry operator focused on non-plant touching activities, such as leases to licensed cannabis operators, online, and in-store hemp-derived CBD transactions, and cannabis business licensing and consulting services, has acquired Pineapple Wellness Inc. and its e-commerce platform, PineappleWellness.com. Read more here.
PRODUCT RECALL: Kind Care of Colorado & Elevated
Another marijuana recall over mold and yeast concerns has hit Colorado, with the latest safety notice impacting dispensaries in Fort Collins and Longmont. According to a June 14 recall notice from the Colorado Marijuana Enforcement Division, Kind Care of Colorado in Fort Collins and Longmont dispensary Elevated sold potentially unsafe marijuana flower, shake and pre-rolled joints from February 10 to June 6 of this year. Both medical and recreational marijuana harvests were included in the recall. Read more here.
John SchroyerJune 14, 2023
If the deal doesn't go through as planned by the end of the month, Hexo could wind up in default.
Adam JacksonMay 30, 2023
The board approved a one-time grant of performance shares to certain members of the management team.
John SchroyerApril 10, 2023
Tilray is looking to beverages - cannabis and traditional - and Europe to grow its top line.
Adam JacksonMarch 17, 2023
Despite market pressures, CEO says price-cutting is not a sustainable option.
StaffDecember 15, 2022The Daily Hit is a recap of cannabis business news for Dec. 15, 2022.
ON THE SITE
California Investor Claims Fraud on CBD Company
A California investment manager has filed a lawsuit against the principals of a fraudulent CBD company claiming the individuals misrepresented their experience and the company. The court complaint, filed Dec. 9, accuses Paul Fiore and Jay Rifkin of claiming to have cannabis business experience, when they didn’t, and inflating the valuations of companies they were operating. Read more here.
HEXO Beats on Revenue, Cuts Cash Burn as it Tries to Stay Alive
HEXO Corp. (TSX: HEXO) (Nasdaq: HEXO) posted earnings that beat revenue expectations as restructuring acrobatics over the past year continues to play out for the company. Net revenues for the quarter were C$35.8 million, down 29% versus C$50.2 million in the same period last year. The company said that the decline was attributable in part to “the timing of revenue recognition as certain shipments failed to reach their destination due to severe weather towards the period end.” Read more here.
RIV Capital Closes Acquisition of Etain, Preps for Expansion in New York
RIV Capital Inc. (CSE: RIV) (OTC: CNPOF), an acquisition and investment firm, closed its previously announced acquisition of Etain LLC, one of 10 vertically integrated cannabis operators in New York. Under the terms of the transaction, RIV Capital paid the remaining purchase price with $42 million in cash and C$8.7 million in newly issued shares. Read more here.
University of Illinois Plans Cannabis Research Center
Discovery Partners Institute, the University of Illinois research center underway in the South Loop, has high hopes to launch a marijuana research facility. DPI has support from the city of Chicago and the state of Illinois, but it doesn’t yet have funding commitments from either one for a project that likely will need tens of millions to become a reality. Read more here.
Primitiv Tackles the Michigan Cannabis Market
Michigan-based cannabis company Primitiv is dedicated to the advancement of cannabis as a form of elevated wellness, believing that the plant holds incredible potential as a healing agent. Green Market Report caught up with co-founders, Calvin Johnson Jr. and Rob Sims, at MJBizCon in November to talk about how they’re tackling the Michigan market. Check out the conversation here.
IN OTHER NEWS
Diego Pellicer Worldwide
Diego Pellicer Worldwide Inc. (OTC Market: DPWW), a premium cannabis company, announced that it has signed a binding settlement term sheet with its Colorado tenants, Royal Asset Management LLC and Venture Product Consulting LLC. Under the terms, Neil Demers, the majority owner of RAM and VPC, will transfer and cause to transfer 100% of all membership interests of RAM and 99% of membership interests of VPC to Diego or a special purpose acquisition company designated by Diego. The agreement resolves a lawsuit in which the company alleged that RAM was in breach of contract for failure to make payments under sublease agreements and a promissory note that Diego issued to RAM. Read more here.
C21 Investments
C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) (“C21” or the “Company”), a vertically integrated cannabis company, reported revenue of $7.2 million for the third quarter ended Oct. 3. Overall revenue fell 0.4% from the second quarter, while sales in Nevada declined 14.7% during the period. Read more here.
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