Skymint surrendered the property to Innovative Industrial Properties.
Skymint surrendered the property to Innovative Industrial Properties.
The Daily Hit is a recap of the top financial news stories for May 8, 2023.
Trademark Appeals Board Rules Against Cannabis Company in Trademark Case
In a first-of-its-kind decision, the Trademark Trial and Appeal Board has upheld the Controlled Substances Act in a cannabis trademark case. The unanimous board ruled against National Concessions Group, a Denver-based subsidiary of Canadian cannabis consumer goods company SLANG Worldwide (OTCQB: SLGWF), on the grounds that cannabis is a federally illegal substance. Read more here.
Delaware Adult-Use Cannabis Sales May Not Launch Until 2025
Delaware, the latest state to join the adult-use cannabis club, won’t actually begin recreational marijuana sales for another year and a half, at the minimum, and perhaps not until early 2025. Read more here.
California Whistleblower Alleges Millions in Cannabis Diversion by Former Employer
As California continues to grapple with the problem of its cannabis being smuggled as far away as New York City, one longtime West Coast industry insider says authorities have declined to act on information about his former employer, a marijuana executive he said shipped at least $2 million worth of legal cannabis out of state in a roughly 10-month period from 2021 to 2022. Read more here.
Curaleaf, Green Thumb Both Bullish Despite Very Different Financials
Massachusetts-based Curaleaf lost more than a third of a billion dollars in 2022. Chicago-based Green Thumb Industries, by contrast, made $12 million last year and $9 million in just its first quarter of 2023. Read more here.
Florida to Grant Additional Cannabis Licenses for Black Farmers
Florida’s medical marijuana market is poised for expansion following the passage of a bill that extends the renewal of marijuana prescriptions over telehealth and authorizes nearly a dozen additional licenses for Black farmers to enter the cannabis industry. Read more here.
• Innovative Industrial Properties Posts $40 Million Profit in First Quarter
• MariMed Year-Over-Year Profits Sink, But Expansion Continues
SAFE Banking Act
Senate Majority Leader Chuck Schumer (D-NY) spoke at a marijuana rally in New York City on Saturday, vowing again to pass federal cannabis banking reform legislation as Congress works to end prohibition. Schumer emphasized his commitment to advancing the marijuana banking legislation with criminal justice provisions included, calling the broader effort to repair the harms of the drug war a “moral responsibility” for Congress. Read more here.
Nova Cannabis & SNDL Inc.
Shareholders of Nova Cannabis Inc. (TSX: NOVC) approved a resolution related to the proposed transaction between the company an dSNDL Inc. (Nasdaq: SNDL) to create a cannabis retail platform in Canada. Read more here.
100% of the company's properties are leased.
The Daily Hit is a recap of the top financial news stories for March 21, 2023.
New York Cannabis Store Adds Potency Disclaimers to Some Products
One of the five licensed and legal marijuana retailers in New York state just added THC potency disclaimers to a range of its products due to flaws in the current lab testing system, which is supposed to determine cannabis product potency to be displayed on labels for customers to see. Read more here.
Tinley’s Sheds Weight as California Cannabis Beverage Market Tightens
Looking to address growing market challenges, The Tinley Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) cut staff and paused some expansion plans while it focuses on its relocation from Long Beach to Blaze Life Holdings’ (BLH) Canoga Park cannabis manufacturing and distribution facility. Read more here.
Another Shareholder Sues Innovative Industrial Over King’s Garden
As the cannabis industry has found itself struggling to compete against unlicensed players, high taxes and falling prices – the ripple effect continues. Late last week, another shareholder filed suit in Maryland against cannabis real estate investment trust Innovative Industrial Properties (IIP) (NYSE: IIPR) for failing to be truthful to investors about its business dealings with Kings Garden. Read more here.
Akerna Wraps Up 2022 With Losses, Exits Cannabis
Former cannabis company Akerna (Nasdaq: KERN) reported its unaudited financial results for the fourth quarter, which ended Dec. 31, 2022. Akerna is attempting to sell off its cannabis assets and has plans to merge with Gryphon Digital Mining. Read more here.
Posabit Systems Corp.
Ancillary technology company Posabit Systems Corp. (CSE: PBIT, OTC: POSAF) released new financial guidance, and said it expects revenues of $60 million-$63 million for the 2023 fiscal year, with profits in the $15 million-$17 million range. Read more here.
Federal Rescheduling Review
U.S. Secretary of Health and Human Services Xavier Becerra this week declined to put a timeline on when his agency would finish an ongoing review of marijuana’s status as a Schedule 1 controlled substance, which could result in federal cannabis legalization. Read more here.
Veritas, Durango Cannabis Recalls
Two recalls were issued this week by Colorado authorities for products made by Veritas Fine Cannabis and Durango Cannabis Co., after testing found potentially unsafe levels of mold. Read more here.
Investor claims IIP lied about due diligence for Kings Garden.
The Daily Hit is a recap of the top financial news stories for February 27, 2023.
Cresco Labs, Columbia Care Push Megadeal to Summer 2023
Sunnyside dispensaries’ parent company Cresco Labs (OTCQX: CRLBF) and Cannabist owner Columbia Care Inc. (OTCQX: CCHWF) formally agreed to extend the closing date of their $2 billion, all-stock megadeal to June 30, 2023. Read more here.
Innovative Industrial Properties Stock Jumps on Q4 Earnings
Innovative Industrial Properties Inc. (NYSE: IIPR) saw its stock price jump quickly upon release of its fourth-quarter earnings from 2022, which revealed $70.5 million in revenues, a 20% jump from a year prior. Read more here.
Atlas Global Buys GreenSeal for Roughly C$3.4 Million
Canadian-based cannabis company Atlas Global Brands Inc. (CSE: ATL) is buying privately owned GreenSeal Cannabis Company Ltd. and GreenSeal Nursery Ltd. Atlas said the acquisition is expected to be accretive to its international strategy, adding a GACP and CUMCS-certified facility with a vertical cultivation model. Read more here.
Ayurcann Holdings Reports Rising Growth in Competitive Canadian Market
Canadian extraction company Ayurcann Holdings Corp. (CSE: AYUR) (OTCQB: AYURF) reported solid revenue growth in its Dec. 31, 2022, earnings report, pointing to team and product expansions, as well as new partnerships. Gross revenue rose to C$4.4 million for the quarter, up 37% from last year’s C$3.2 million in the same period. Read more here.
Massachusetts Cannabis Execs Predict ‘Tough Year’ in 2023
Like much of the rest of the U.S. cannabis industry, Massachusetts marijuana executives say they’re expecting a “tough year” in coming months, thanks to increased competition from neighboring states and a broad economic downturn that has customers spending less. Read more here.
New York cannabis
New York State’s legislature is well into this year’s legislative session, and members of the Senate and State Assembly have already filed dozens of bills related to the legal cannabis industry. There are bills related to public consumption of cannabis, bills focused on sustainability, bills dealing with workforce issues in the industry. Read more here.
Managing general agent GMI Insurance, a specialist in commercial transportation insurance, has announced the launch of a cannabis transport program. The program is unique in that it combines physical damage with motor truck cargo, GMI said. It also covers third-party specialty transporters and courier services. Read more here.
Acquisitions boosted IIP's footprint to 119 properties.
The Daily Hit is a recap of the top financial news stories for January 30, 2023.
An investor group is suing Innovative Industrial Properties (IIP) (NYSE: IIPR) for not doing proper due diligence in its Kings Garden investment. Investor Michael Mallozzi originally sued IIP in April 2022, when the Blue Orca Capital report came out. He was then joined by investors Alejandro Handal and Stephen Forrester. They are claiming IIP mislead investors, was incompetent, and broke securities laws. In December, IIP asked the court to dismiss the case, but the latest brief asks the court to deny that request to dismiss because IIP was aware that Kings Garden was a Ponzi scheme while telling investors everything was OK. Read more here.
Akerna Corp. (Nasdaq: KERN) said on Friday afternoon that it will merge with a bitcoin mining company and offload its software business to POSaBIT Systems Corporation (CSE: PBIT) (OTC: POSAF) for stock and cash, respectively. Akerna will sell its MJ Freeway business units, including MJ Platform and Leaf Data System brands, and Ample Organics to POSaBIT for $4 million in cash. The company said it plans to use the proceeds of the transaction, after expenses, to pay its remaining outstanding accounts payable and pay down any remaining principal balance on its outstanding senior secured convertible notes, in addition to net cash requirements associated with the proposed merger between Akerna and Gryphon. Read more here.
Flora Growth Corp. (NASDAQ: FLGC) released its revenue guidance for the fiscal year 2023 as the company forecasted a range of $90 million to $105 million. Flora said that its estimates reflect expected organic growth in the House of Brands division and expansion of the Commercial & Wholesale division capabilities. The stock was jumping 18% in early trading on the news and was lately selling at 31 cents. However, it still has a long way to go to regain the Nasdaq’s minimum $1.00 bid price requirement. Read more here.
The acquisition of Chicago marijuana retailer Dispensary 33 went up in smoke amid a cash crunch caused by a steep decline in cannabis stocks and a sharp increase in interest rates. Miami-based Ayr Wellness (OTC: AYRWF) said on Jan. 27 it’s not going to complete the $55 million acquisition of D33, a popular independent marijuana retailer. The deal was announced in November 2021, about a year after Ayr went public. Read more here.
The Chicago restaurant group behind West Town Bakery is teaming up with a new dispensary that’s opening in suburban Wheeling next month, and it’ll be part bakery and cafe, part marijuana shop. The store, called Okay Cannabis, will essentially have a West Town Bakery Cafe & Lounge operating alongside the marijuana shop. The shop will serve Dark Matter coffee, pastries, sandwiches, and cocktails, and it will have an outdoor patio that seats more than 100 people. Instead of staging customers in a waiting area like most dispensaries do, the idea is to let them hang out at the cafe, said Scott Weiner, co-owner of Fifty/50 Restaurant Group. Read more here.
IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC)has closed a third tranche of its previously announced non-brokered private placement offering of units of the company. An aggregate of 1,162,000 Units at a price of $1.25 per Unit for aggregate gross proceeds of $1,452,500 was issued and sold under the third tranche of the LIFE Offering. To date, the company has also closed during the first and second tranches for aggregate gross proceeds of $3,024,153. Read more here.
CBD of Denver, Inc. (OTC Pink: CBDD) announced the successful completion of its acquisition of Libra 9 GMBH. The company is in the process of relocating its operations to the Libra 9 campus in Berlin, Germany. Libra 9 has the necessary infrastructure in place to scale up manufacturing and warehousing, enabling the company to immediately expand its sales throughout the rest of Europe. Read more here.
Lawsuit alleges IIP knew it was a Ponzi scheme, but said nothing.
The Daily Hit is a recap of the top financial news stories for January 19, 2023.
Columbia Care Closes Unprofitable Dispensaries, Cuts Jobs
In an effort to cut costs and try to become profitable, Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) closed four unprofitable dispensaries and cut its headcount by 25%. Col-Care said it closed one dispensary in California and three in Colorado. In addition, the company consolidated cultivation operations in California, Colorado, and Pennsylvania to improve its adjusted EBITDA contribution. Read more here.
IIP Says Cannabis Tenants Not Paying Rent
Innovative Industrial Properties Inc. (NYSE: IIPR) said rent collections dropped to just 92% for the month ending Jan. 31. The company said it had collected 97% of its rent at the end of December. The cannabis real estate investment trust outed various cannabis companies that have slipped in their rent payments. Read more here.
Minnesota Legalization Bill a Good Start But Could be Improved
A new bill in the Minnesota Legislature to legalize adult-use cannabis features a few provisions that indicate state lawmakers are learning which policies work and which don’t when it comes to replacing underground marijuana markets with regulated ones. Read more here.
TerrAscend Corp./Wana Brands
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF), a North American cannabis operator, signed a multiyear agreement with edibles manufacturer Wana Brands to introduce Wana’s products at The Apothecarium retail stores and additional third-party retailers in New Jersey. The agreement will also transfer the manufacturing and sales of Wana’s existing portfolio of products in Maryland to TerrAscend. Read more here.
Relativity Acquisition Corp.
Relativity Acquisition Corp. (Nasdaq: RACY), a blank check company focused on targets in the legalized cannabis industry, received a determination letter from the Nasdaq Listing Qualifications staff that the company was not in compliance with the requirements of the Nasdaq Listing Rules or either of the alternative requirements for continued listing on The Nasdaq Global Market. Read more here.
Tier One Consulting
In a complaint filed Wednesday, Tier One Consulting, which is owned by DJCBP Corp., and David Ju said former city officials of both Baldwin Park and Compton in California conspired to illegally sell a cannabis license to Ju, and mishandled mitigation fees that he paid as part of the license deal. Read more here.
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