Illinois Archives - Green Market Report

StaffSeptember 22, 2022


The Daily Hit is a recap of cannabis business news for Sept. 22, 2022.


License Winners Sue Illinois Over Ownership Rules

Two winners of retail marijuana licenses who previously sued Illinois over alleged flaws in its application process are suing again. Having won retail licenses in lotteries, they’re suing the state Department of Financial & Professional Regulation over rules that forbid licensees to sell those licenses or equity stakes in them until they build out their dispensaries and win final approval. Read more here.

Seattle Paves Way For Social Equity With Free Cannabis Licenses

Seattle residents who live in areas with high poverty or have been directly affected by the war on drugs are now eligible for zero-dollar cannabis licenses to do business in the city. Under the new rules, a social equity applicant must have at least 51% controlling ownership in the business. Read more here.

Tilray Gets Green Light for Italy

Tilray Brands (Nasdaq: TLRY) announced that FL Group S.R.L., a division of Tilray Medical in Italy, received approval from the Italian Ministry of Health to import and distribute Tilray’s medical cannabis oral solution THC25 across the country. Read more here.

C21 Revenue Falls Despite Healthy Balance Sheet

C21 Investments (CSE: CXXI) (OTCQX: CXXIF) posted results late after the market closed on Wednesday that showed slimming revenue in a state that has seen less tourist and local spending as wallets get tighter. The company posted revenue of $7.2 million – down 4% sequentially. Read more here.

Agrify Honored For Best Cultivation Tech At Green Market Report Tech Awards

A provider of advanced cultivation and extraction solutions for the cannabis industry, Nasdaq-listed Agrify brings data, science and technology to the forefront. Proprietary micro-environment-controlled vertical farming units enable cultivators to produce high-quality products with unmatched consistency, yield and return on investment at scale. The Green Market Report Tech Awards were presented following the first-ever Green Market Report Tech Summit on Sept. 8 at The Pearl event space in San Francisco. This week, we’ll be providing a closer look at the honorees. Read more here.


Canada to Review Impact of Cannabis Legalization

Canada on Thursday launched a review of the country’s legalization of recreational cannabis use four years ago to evaluate its impact on youth, indigenous minorities and others, and analyze its effect on the economy and the illegal marijuana market. Read more here.

Two Companies Given OK to Produce Medical Cannabis in Georgia

After a long legal slog, two companies have been given the green light to grow and produce medical cannabis — specifically, low-THC oil — in Georgia. Botanical Sciences LLC and Trulieve Georgia Inc. — two of the original winners of the process — were officially awarded licenses by the state’s medical marijuana commission. The unanimous decision follows more than a year of protests from rejected applicants. Read more here.

Connecticut Announces Cannabis Retailers and Microcultivators Selected in General Lottery

The Connecticut Department of Consumer Protection Adult-Use Cannabis program has notified applicants for retail cannabis establishments and micro-cultivators that they were selected in a general lottery. The six retail applicants and two micro-cultivator applicants have been informed they can proceed with the next steps in the licensure process. Read more here.

StaffSeptember 8, 2022


The Daily Hit is a recap of cannabis business news for Sept. 8, 2022.


How Much Is An ‘Arm And A Leg?’: It Might Be $1 Million In Florida, Insiders Say

During a recent press conference, Florida Gov. Ron DeSantis mulled pushing for a steep hike in business license fees in the next round of applications from those vying to enter one of the fastest growing cannabis markets in the country. Since then, the cannabis industry in Florida has been trying to decipher just how much the next round of licenses might cost. Read more here.

Cresco Completes Sale-Leaseback Deal In Pennsylvania To Free Up Capital

Chicago-based Cresco Labs (CSE: CL) (OTCQX: CRLBF) this week completed another sale-leaseback arrangement, this time with Aventine Property Group for a facility in Pennsylvania, from which Cresco gained $45 million in cash. Read more here.

Minority-Owned Illinois Company Raises $17M, Warns Industry Could ‘Collapse’

Within the span of a week, a vertically integrated and minority-owned company in Illinois has both raised $17 million in funding and warned others the state cannabis industry is “on the verge of collapse.” Read more here.


Ayurcann Closes Acquisition of Joints and Hustle & Shake

Ayurcann Holdings Corp. (CSE: AYUR) (OTCQB: AYURF) (FSE: 3ZQ0), a Canadian cannabis extraction company specializing in the processing and co-manufacturing of pharma grade cannabis and hemp, has closed its acquisition of Joints and Hustle & Shake for C$5.5 million. Read more here.

Leviathan Natural Products Changes Corporate Name to 1CM

Leviathan Natural Products (CSE: EPIC) (OTCQB: LVCNF) (FSE: IQ7) received shareholder approval to change its corporate name to 1CM. The company will continue to trade under its current stock symbol EPIC. Read more here.

Adam JacksonAugust 15, 2022


After the market closed on Monday, 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) posted positive results — buoyed by growth from lucrative M&A deals over the past year. The vertical multi-state operator announced its financial results for the second quarter ended June 30, 2022.

4Front delivered approximately $34.5 million in total revenue during the period, versus $34.4 million the same period last year — beating the Yahoo Finance Average analyst estimate for revenues of $27 million. The gain is primarily due to increased revenue in the company’s wholesale revenue as it ramps portions of its business in California, Illinois and Massachusetts.

The earnings per share remained at a loss of one cent — in line with both the pervious quarter and the same time last year.

“Throughout the second quarter and now halfway through the third quarter, we are seeing an acceleration of business trends within our growth markets, particularly in Massachusetts and California,” said CEO Leo Gontmakhert. “Our retail locations platform-wide maintained or gained market share, despite anticipated pricing headwinds as we continue to expand our customer base with new product innovations and quality improvements. We believe we are poised for a significant leg of growth to take place over the next 12 months as we leverage our investments in state-of-the-art automation and scaled manufacturing processes, supplemented by strategic and accretive M&A.”

4Front posted an adjusted EBITDA of $9.2 million in the quarter, up 23% from the same time last year — representing an adjusted EBITDA margin of 26.7%. The company said that continued growth of adjusted EBITDA and margins is expected to persist through 2023 as the company’s operations drive increased production and higher sales volumes without material increases to overhead.

The company had $6.0 million of cash and $49.5 million of related-party long-term debt not due until May, 2024. It has 636,636,686 subordinate voting shares outstanding.

4Front also announced that it has signed a definitive agreement to acquire the California-based Bloom Farms brands. The company said it will complete the transaction with Bloom Farms in the coming weeks, and expects to announce similar acquisitions over the next several quarters.

“In the distressed and fragmented California market, we are seeing increased interest from companies looking to 4Front as their low-cost producer of choice,” said Gontmakhert. “Our long-term plans are to deepen and expand these relationships to grow revenue over time and add a retail presence in the state.”

4Front said at the start of the fiscal year that it continues to believe that wholesale growth in both Massachusetts and Illinois is poised to strengthen over the year “as additional retail comes online in those underserved states.”

“After implementing new techniques and methodologies to our production processes in Massachusetts, we made notable improvements to the yield and quality of our flower across the country during Q2,” Gontmakhert said about the progress since then. “These new processes have now been incorporated in Massachusetts and Illinois, and we are currently applying them to our facilities in Washington. As the construction of Phase 1 of our Illinois cultivation and production facility nears completion, we are looking to expand our retail footprint in the state over the coming months in preparation for that facility to commence operations in 2023.”

“We are excited by the momentum we have seen so far in Q3, and I am convinced that the next twelve months will demonstrate the power of our model at significant scale, paving the way for robust, sustained growth in the long term,” said Gontmakhert.

StaffAugust 8, 2022


This story was reprinted with permission from Crain Chicago and was written by John Pletz.

As the state issues dispensary licenses, the first agreements to sell them are surfacing.

Now we have an idea of how much the newly issued Illinois retail marijuana licenses are worth.

Planet 13 says it will pay $2.9 million to purchase the 51% of a Chicago-area retail license it doesn’t already own, putting the total value of the license at roughly $6 million.

The Las Vegas-based company partnered with Frank Cowan, who qualified as a social-equity applicant and won an Illinois license a year ago when the state held lotteries for 185 new dispensaries. After several lawsuits were resolved, the state issued the licenses beginning July 22. Applicants have 180 days to find a store location. Planet 13 has yet to announce a location.

Planet 13 (OTC: PLNHF) says it has negotiated an option to purchase Cowan’s majority interest over the next two years for $866,250 in cash, as well as nearly 1.1 million shares of stock that are valued at roughly $2 million. Cowan says he plans to remain with Planet 13 after he sells.

The state of Illinois says dispensary licenses it issued are conditional and can’t be sold until they are finalized, which means a store has passed final inspection and is open for business. But that hasn’t stopped license holders from negotiating deals.

MariMed, a Massachusetts-based cannabis company with four Downstate retail shops, said today it has an agreement to buy another dispensary license in southeastern Illinois near the Indiana border. It declined to disclose the name of the license holder or the price. In May, the company bought a “craft-grow” license to cultivate marijuana in downstate Mount Vernon.

“I anticipate we’ll hear of a lot more license sales in the next 30 days,” says Bill Bogot, a partner in Chicago at law firm Fox Rothschild and co-chair of the firm’s cannabis group. “There are people who had partners all along, but I’m also seeing people who never intended to sell who are getting offers.”

Ever since Illinois legalized recreational marijuana three years ago and announced that it planned to award new licenses for retail shops, lawmakers and people connected to the weed industry have wondered how many winners would sell their licenses.

A key aspect of the Illinois law was its aim to diversify ownership of the largely white- and male-owned marijuana industry. Lawmakers created a provision to award extra points to “social-equity” applicants, or those who lived in neighborhoods disproportionately impacted by violence and poverty associated with the war on drugs or who had convictions for marijuana possession that no longer would be illegal.

Early on, industry experts speculated the new retail licenses would fetch as much as $8 million to $10 million. But the price of those licenses has been under pressure over the past year. Cannabis stocks have dropped by two-thirds as the overall market fell and hopes faded for loosening federal cannabis restrictions. Since Illinois legalized recreational weed, would-be investors also have been presented with additional options to invest, with new markets such as New Jersey, Arizona and New York. Meanwhile, the costs of opening a dispensary have risen.

“Interest rates are challenging,” Bogot says. “The federal government hasn’t moved on legislation (that would free banks and others to lend to cannabis companies). Sources of capital are highly constrained, and that presents challenges. People are getting offers and entertaining them.”

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