Jushi Archives - Green Market Report

Andrew WardApril 4, 2022
Grasslands-scaled.jpg?fit=1200%2C675&ssl=1

9min19040

It’s a well-accepted anecdotal fact that cannabis and music go together. From the jazz clubs to the headbangers ball to underground hip hop shows and beyond, where there’s music playing, pot’s often being consumed. 

That long-lasting bond has recently come in handy for brands looking to connect with legal consumers. Federal regulations prohibit cannabis from online ads, forcing marketers and brands to ramp up creativity. In recent years, cannabis brands have become increasingly present at music festivals and concerts through sponsorships, activations and other consumer-facing endeavors.

“When executed correctly and compliantly, live event marketing collaborations can absolutely drive sales and brand awareness, as well as form lasting consumer relationships and promote brand loyalty,” said Andreas Neumann, Jushi Holdings Inc (OTCMKTS: JUSHF) (CNSX: JUSH) chief creative director and 2020 Grammy award winner for Best Album Package. 

While short on data, cannabis leaders say they’ve witnessed the potential in live events marketing and partnerships with cannabis-friendly artists. 

Live Event Marketing Grows In Cannabis

Like cannabis and its various medical claims, most seem to accept anecdotal feedback regarding the return on investment (ROI) for live event sponsorships. While additional findings would conclude the debate, most already agree on its efficacy.

“While legal cannabis is still a relatively young industry, the effectiveness of event marketing has been proven over and over in many other industries, including CPG,” said Glass House Brands Inc (OTCMKTS: GLASF) President Graham Farrar.

The uptick in cannabis at events has been noticeable, particularly in states with legalized adult-use and/or relaxed public consumption laws. 

“While we have more regulations to contend with, it doesn’t change the value that live events can bring,” said Farrar. 

Additional regulations, like bans on sales and onsite consumption, can prove detrimental, but brands have not let them thwart live music marketing endeavors. 

Associating With Live Acts Reportedly Pays Off

As cannabis becomes more widely accepted, its presence grows at significant live events. So much so that the plant is sometimes front and center. 

In October 2021, Eaze’s Grass Lands served as the hub for all things cannabis during the three-day Outside Lands Festival. Grass Lands came complete with its own stage and a three-day live music and comedy lineup. Event partners included Cookies, PAX, and Autumn Brands.

In January 2022, Veritas Fine Cannabis sponsored the 10th anniversary of the Winter on the Rocks concert held at Denver’s Red Rocks Amphitheater. Diplo and Talib Kweli headlined the event. Veritas’ featured onsite activations to improve the concert experience, including free shuttle rides and live paintings by artist Morgan Mandala.

“Live event marketing enables us to position ourselves in front of a new audience, as these events bring people from various backgrounds together,” said Veritas Marketing Director Jordan Plunkett. 

The company also offered dispensary workers exclusive perks, including a performance by funk band Lettuce, catered meals, and early access to new products. 

Taylor Saralli, the company’s presentation manager, noted that Veritas engages in various live events each year, including activations with electronic artist Pretty Lights and art exhibits from Meow Wolf. 

Saralli, who considers live music one of the company’s most effective marketing tools, added, “Live events allow us to interact with, celebrate and create genuine relationships with our consumers and the budtenders who sell our products.”

Plunkett noted positive results from the Red Rocks event, including over 5,000 new consumer signups, 5,700 unique website visits, approximately 12% increase in social media engagement and roughly 300 new social media followers.

Others are reporting the benefits of live events. Juanjo Feijoo, COO & CMO for WM Technology Inc (NASDAQ: MAPS), didn’t offer financial figures but noted that activation partners had seen increased numbers from live event activations.

He noted that a 2021 live event collaboration at the multi-day Aftershock Festival with Sacramento-based dispensary and delivery service KOLAS paid off immensely. Their endeavor, the Loud Lounge, allowed guests to kick back while waiting for delivery orders. 

Feijoo said sales boomed for KOLAS, resulting in “The equivalent of two or three weekends of orders for them.” He attributed the success to finding consumers in one collective event.

Thinking Beyond The Show

Opportunities exist beyond the venue, offering brands and performers ample opportunity to collaborate. 

One example includes the September 2021 partnership between Denver’s Seed & Smith and electronic artists Big Gigantic. The company featured strains chosen by the band as part of the release of the company’s DART pod system. The company reported seeing a worthwhile ROI from the deal.

“Having that name attached to the DART certainly influenced some purchasing,” said Robbie Wroblewski, director of community outreach for Seed & Smith. The company did not provide financial data to support its report.

 


StaffFebruary 7, 2022
shutterstock_1376854163-1-scaled.jpg?fit=1200%2C825&ssl=1

8min10350

Jushi Holdings Inc.

Latoya Bellamy-Lockhart, Vice President of Human Resources of Jushi Holdings Inc. (OTC: JUSHF)

When did you formally enter the cannabis space?

I’ve been around cannabis most of my life, though I formally entered the industry in December of 2020. While I was at my last job, working as the Human Resources Director at Brightline Trains, I was contacted by a recruiter who thought I would be a great fit for a role in Jushi’s Human Resources department. After meeting with Nichole Upshaw, Jushi’s head of HR, and others, I took a hard look at the company’s values, trajectory, and the overall cannabis landscape, and everything just seemed to click. I accepted the offer to become Jushi’s Sr. Director, Talented Acquisition & Employee Experience. Making the leap into cannabis ended up being fairly easy because the whole thing felt natural. Right away, it became clear that my perspectives and the professional skills I had previously developed would not only add value to the company but could also make a real difference in people’s lives.

One year later, I am Jushi’s Vice President of Human Resources, where I am charged with overseeing the company’s areas of talent acquisition, employee relations, and employee experience. I couldn’t be happier to be a part of this incredibly important movement in America’s history.

What made you decide to work in the cannabis industry? 3 reasons.

While there were numerous reasons, the most important factor for me was the opportunity to work in an environment focused on improving the quality of life for so many people. Cannabis allows millions of people to manage a wide variety of difficult and debilitating conditions, and this impact can’t be overlooked. Secondly, I have witnessed the horrible consequences of the failed war on drugs, both within my own community and throughout our country as a whole. The opportunity to drive key changes in how society perceives and handles cannabis is something I am immensely proud of and do not take lightly. Lastly, I wanted to work with compassionate, innovative people who stand for something I believe in. At Jushi, I’m so grateful to work with such wonderful and talented people. Together we have built a team that is not only committed to doing right by our patients, customers, and communities but also committed to uplifting each other and bettering the cannabis industry as a whole. As a result, we’ve become one of the strongest cannabis companies in the space.

Do you feel there is more opportunity for Black Americans in the cannabis industry versus a more traditional industry? Yes or no and why?

I think there are sizable opportunities for Black Americans both in and out of the cannabis sector that has largely been untapped and unrealized due to our country’s legacy of systematic racism and disenfranchisement. Specifically talking about the cannabis sector, I believe there are a wide variety of opportunities for Black Americans; we are in a unique position, as so many of us have firsthand knowledge of and experience with the plant, we have been disproportionately incarcerated and affected by the war on drugs, and we hold a deep understanding of the history and culture surrounding plant and how it’s led to where the industry is at today. Our knowledge is a real asset.

Both the private and public sectors have more work to do in terms of promoting equality, diversity, and inclusion. Of the utmost importance: I look forward to seeing more Black Americans’ records expunged so that they have the opportunity to benefit from and be a part of what is now a multi-billion dollar industry. While there is a ton more work to do, we are making progress, and we won’t stop fighting for equality and overturning failed policies of the past that continue to plague Black communities and bar Black Americans’ ability to be successful in this industry.

What is the most successful social equity effort in your opinion? Can be a charity or company program.

My personal favorite is the Center for Constitutional Rights (“CCR”), an organization dedicated to advancing and protecting rights guaranteed by both the U.S. Constitution and the Universal Declaration of Human Rights. Through its combined application of cutting-edge litigation, education, advocacy, and strategic communications efforts, the CCR is able to address a broad range of civil and human rights issues. This work is vital given our current social climate where the rights of so many are infringed upon and egregious inequality still exists.

What is your personal goal for 2022?

As a woman and a Black American in the workforce, I’m acutely aware the odds have been stacked against me. I have the tendency to place too much pressure on myself – I’m sure many Black women can relate. At times, I know that pressure has caused me to unnecessarily second-guess myself. In 2022, some of my personal goals are to cut myself a break, focus more on self-care and continue working to trust myself. I plan to put myself out there more and be an example to show Black Americans what’s possible. I also plan on taking on more mentees in the space who I can show the ropes too. I’ve been lucky to have some great mentors over the years and I’m determined to pay it forward; I encourage others in leadership roles to do the same. Mentoring – through both big and small actions –  can make all the difference in someone’s life and career.


StaffJanuary 27, 2022
beyond.jpg?fit=960%2C540&ssl=1

4min8990

Jushi Holdings Inc.  (CSE: JUSH) (OTCQX: JUSHF) has closed a non-brokered private placement  raising $10 million as the company’s shares have begun to lift from its 52 week low of $2.95 and shares were lately trading at $3.56.

“We are extremely encouraged by the support we continue to receive from GAMA, a well-established asset manager,” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi. “Their confidence reiterates the strength of our differentiated corporate strategy, industry leading organic revenue growth rate, geographic footprint leveraged to medical states evolving to adult-use, as well as the strength of our management team. This investment will support the expansion of our grower-processor facilities and our continued pursuit of accretive acquisitions.”

The offering of 2,717,392 subordinate voting shares were sold at a price of $3.68 per share to Graticule Asset Management Asia for gross proceeds of $10 million. Jushi said the funds will be used for potential strategic acquisitions and general corporate purposes. As of December 31, 2021, the company’s pro forma cash balance, including proceeds from the Offering, was approximately $104 million.

Mr. Cacioppo continued, “Given recent stock market volatility, we are seeing a tremendous amount of deal opportunities, driven by recent license issuances and pending processes in Illinois and Ohio, several broken deals and auctions, our current pipeline, and an increase in the number of distressed companies. We are well-positioned with a strong balance sheet and cash holdings which exceed our anticipated capex plans and continue to have access to additional sources of financing to pursue strategic expansion opportunities.”

A couple of weeks ago Cacioppo announced he had purchased 66,800 Class B Subordinate Voting Shares of the company in the open market for an approximate amount of two hundred and twenty thousand dollars. He now own in the aggregate, approximately 19.2% of the issued and outstanding Subordinate Voting Shares

Mr. Cacioppo concluded, “In addition, our acquisition facility, pro forma for the Nevada transactions closing, will have approximately $63 million of available capacity, including the accordion feature. We are confident that our disciplined approach to capital allocation, along with our industry-leading M&A track record will result in significant long-term value for our shareholders as we continue to scale the business.”

Debra BorchardtJanuary 10, 2022
law-2.jpg?fit=960%2C640&ssl=1

13min30612

Even as cannabis companies are making lots of noise about their social equity actions, Republicans are quickly moving to strip out any efforts to level the playing field. The latest move is by Virginia’s legislation. The state’s SB107 was filed on January 6 and is scheduled to be offered on January 12, 2022. What is notable about the legislation is that 30% of the tax revenue was originally carved out to go to the Cannabis Equity Reinvestment Fund established pursuant to § 2.2-2499.8 and instead is being directed to the general fund. Sources told Green Market Report that legislators were calling the program, “give a felon a license.”

Paul McLean of the Virginia Minority Cannabis Coalition one of the most respected new voices within the Virginian cannabis industry said, “The SB107 appears to be the first move in dismantling social equity in Virginia. Having funding is essential to the success of an equity program, and eliminating that funding is a slap in the face to those who have worked so hard to ensure Virginia has a healthy and equitable cannabis market. Part of what VMCC is doing with our boot camps is providing funding connections to graduates because of the systemic lack of funding opportunities overall and primarily Black and Brown entrepreneurs, especially those impacted by the war on drugs. We know that our elected officials can do better, and Virginians must demand they do what is fair for their constituents.”

The fund was created in the state treasury as a special nonreverting fund that was to be used to help those affected by the drug wars and that any leftover money was specifically not to go to the general fund. The language initially the money for the purposes of:

1. Supporting persons, families, and communities historically and disproportionately targeted and affected by drug enforcement;

2. Providing scholarship opportunities and educational and vocational resources for historically marginalized persons, including persons in foster care, who have been adversely impacted by substance use individually, in their families, or in their communities;

3. Awarding grants to support workforce development, mentoring programs, job training and placement services, apprenticeships, and reentry services that serve persons and communities historically and disproportionately targeted by drug enforcement.

4. Contributing to the Virginia Indigent Defense Commission established pursuant to § 19.2-163.01; and

5. Contributing to the Virginia Cannabis Equity Business Loan Fund established pursuant to § 4.1- 1501.

Democrats had passed the original legislation, but Republican Glenn Youngkin won a hard-fought race to become the new Governor. Activists had become concerned that Youngkin might slow roll the efforts to begin legal adult-use sales that were slated for 2024, although there have also been some efforts to speed the timeline. Republicans in the state did not vote for legalization, while the Democrats did. Youngkin said in April that he’s “never met anybody who habitually used marijuana and was successful.” In May he described legalization as “another problem that’s going to be dumped at my feet” if he were elected. Yet, cannabis companies were hopeful that legalization would proceed.

Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi (OTC: JUSHF) said in November, “With Governor-elect Youngkin previously stating that he would uphold the will of the people, and focus on creating a ‘rip-roaring economy,’ we are fully confident that he and the people of Virginia will continue to make progress as we look to bring thousands of new well-paying jobs, drive hundreds of millions in taxable infrastructure development and generate hundreds of millions in new tax dollars through a safe, regulated program at a time when the Commonwealth is ready to prosper.”

Virginia Medical Marijuana Companies

While Virginia has only legalized medical marijuana, some large MSO’s have targeted the state for growth. Jushi and Columbia Care (OTC: CCHWF) are both located in the state. Dalitso LLC dba Beyond / Hello (retail brand for Jushi) operates in the state, along with Green Leaf Medical and Dharma Pharmaceuticals. MedMen’s approval was rescinded in June of 2021. In September, Columbia Care said that it teamed up with three organizations – BIPOCANN, Virginia Minority Cannabis Coalition, and Nolef Turns to offer social equity-driven resources for the developing cannabis community in Virginia.

“Undoing the harms of prohibition requires more than laws–it takes community, outreach and resources,” said Ngiste Abebe, Vice President of Public Policy at Columbia Care in September. “As the market leader in Virginia, we want to see a thriving cannabis economy in which everyone can take part, especially those who have been disproportionately affected by cannabis prohibition. While Virginians wait for adult use laws to be finalized, partnerships like this can help prepare impacted communities to benefit from economic opportunities that have been explicitly created for them. We look forward to working with these partners and local officials to support an expanded, more diverse, more impactful cannabis community in Virginia.”

SRA

In  November, Congresswoman Nancy Mace (R-SC) sponsored The States Reform Act (SRA), filed in the U.S. House saying, “This bill supports veterans, law enforcement, farmers, businesses, those with serious illnesses, and it is good for criminal justice reform. Furthermore, a super-majority of Americans support an end to cannabis prohibition, which is why only 3 states in the country have no cannabis reform at all.” Her bill did offer expungement for those convicted of cannabis crimes, but it did not include any social equity language. Mace is a freshman Congressional member with less power than others. She is also a proponent of the “Big Lie,” which didn’t seem to deter cannabis industry leaders who sang her praises in November.

Many in the cannabis industry have become frustrated with Democratic leadership that has not been able to pass any legislation. Senator Chuck Schumer has insisted on holding out for legislation that includes some sort of social equity component, but that issue seems to be the line in the sand for Republicans. Expungement looks to be palatable, as does banking language, but offering to level the playing field is apparently a bridge too far.

New York Dems Create $200M Fund

While Virginia is stripping out the social equity fund, New York’s Democratic governor Kathy Hochul is taking a different approach. In the “State of the State” book released last week, it said “In support of that goal, Governor Hochul will create a $200 million public-private fund to support social equity applicants as they plan for and build out their businesses. Licensing fees and tax revenue will seed the fund and leverage significant private investment.”

It went on to say, “While New York has committed to making its cannabis industry more equitable, this action will put that commitment into practice. New York will lead where many other states have fallen short,” it continues. “The governor is focused on providing more than basic business supports and training for our future cannabis entrepreneurs, and this fund will provide direct capital and startup financing to social equity applicants as the State takes meaningful steps to ensuring that New York’s cannabis industry is the most diverse and inclusive in the nation.”

Social Equity Programs

While states have had hopes of creating programs to level the playing field, the results haven’t been as promising. The Diversion, Inclusion, and Social Equity (DISE) Committee of the California Cannabis Industry Association (CCIA) released a detailed accountability report in November. The report carefully examined California’s social equity program, specifically, the state’s initial seven districts that received grant funds from the California Cannabis Equity Act passed in 2018. The California Cannabis Equity Act of 2018 was designed to empower minority business owners who have been most impacted by the War on Drugs. Children of those incarcerated for non-violent crimes were among the applicants who applied to benefit from the program, which is about as close to “impacted by the War on Drugs” as it gets. 

Many people believe California’s social equity program isn’t living up to what was promised when the bill was passed. The accountability report released by the CCIA proved that to be true. 

Here are some key findings: 

  • In Oakland, 90% of respondents said lack of capital is a major problem plaguing their business 
  • In Los Angeles, as of October 1, 2021, only 28 of the 200 identified social equity applicants have received temporary approval
  • In Mendocino, the County has not yet approved any Equity Eligible Applications

In Closing

It’s tremendously difficult to engineer social progress. Some states are very focused on the effort, while others are less so. Some have implemented programs to varying levels of success. Most have faced great criticism as no one strategy has proven to be the most effective. Cannabis companies often seem caught between trying to address the issues on their own versus wanting to support legislation that financially benefits the companies, but has no interest in social equity.

 


Julie AitchesonDecember 2, 2021
thanksgiving.jpg?fit=960%2C640&ssl=1

5min11450

The numbers are in and it’s official—Green Wednesday 2021 was a big one for the cannabis industry, while Black Friday fizzled in comparison. Green Wednesday saw cannabis sales increase across the U.S. Black Friday did not have the sales growth seen in previous years, though some data (Flowhub) showed larger order values and bigger discounts than Green Wednesday. Data from market analytics and cannabis companies like Headset, LeafLink, Lantern, Glass House Brands, and others show common trends regarding most popular products and year-over-year sales numbers. Using this data, companies extrapolate some possible variables affecting this year’s numbers, including a decreased emphasis on Black Friday door-buster deals targeted towards packing stores with bargain-hungry shoppers, focusing instead on online sales spread out over the holiday season (Springbig).

Headset’s Green Wednesday 2021 data showed a 33% increase in total retail sales compared with the four previous Wednesdays, with a marked trend of customers taking advantage of promotions on offer to receive discounts on holiday shopping, with the average discount up 29 percent. This was in contrast to a slight decrease in sales (-4.6%) on Black Friday relative to the previous four Fridays, despite the fact that average Black Friday discounts increased by 56% from the previous four Fridays.

Flowhub’s data showed an average Green Wednesday discount of $9.57 (up from $8.94 in 2020) and an average Black Friday discount of $11.09. Notable in Flowhub’s findings was the conclusion that while Green Wednesday was a big sales day, Thanksgiving weekend as a whole had lower pre-tax sales than a typical Wednesday through Sunday. Jushi Holdings (OTC: JUSHF) didn’t seem to notice, however, experiencing its best online sales day in the company’s history on Green Wednesday 2021 with an 80% uptick in sales during Thanksgiving week and online ordering up 200% on Green Wednesday. Eaze saw a 135% increase in deliveries compared to a typical Wednesday in 2021, making it their second biggest day this year by both numbers of deliveries and sales after 04/20/21.

Edibles Most Popular For Green Wednesday

Headset’s data on category winners by sales numbers showed edibles leading the pack with 67% growth on Green Wednesday and 11% on Black Friday. Topicals and tinctures took second and third place while beverages saw a whopping 86% growth. Leaflink showed flower holding the top spot for most popular category in the month leading up to Green Wednesday making up 33% of sales with cartridges coming in second up 24.9% from the previous month. Jane Technologies saw its biggest category sales increases in edibles (94%), vapes (84%), and flower (73%) compared to the previous three Wednesdays, with chocolates and disposables leading subcategory sales by increases of 126% and 100% respectively. For Glass House Brands (OTC: GLASF), flower, carts, and edibles were the big winners.

LeafLink’s data measured the growth of sales (10.61%) during the month leading up to Green Wednesday compared to October, with the biggest sales increase (16%) coming during the week of November 14th over the previous week. The run-up to Green Wednesday broke records for cannabis company Lantern, with a 44% rise in average daily sales leading up to Green Wednesday, though there was no significant change to daily Average Order Value.  As the cannabis economy continues to transform to meet a shifting retail environment and shopping behaviors adaptive to these uncertain times, market analysts and retailers will continue to keep an eye on Green Wednesdays and Black Fridays to come as annual bellwethers for the market.

 


StaffDecember 1, 2021
holiday-2.jpg?fit=960%2C493&ssl=1

8min13720

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) recently conducted a “Cannabis Consumer Insights Holiday” poll that found most cannabis consumers plan on giving cannabis-related gifts for the holidays. The poll surveyed 1,000 cannabis consumers from U.S. states with state-legalized cannabis sales and most said they plan on making cannabis a part of their holiday celebrations. In addition to that, their friends and family members may also get some cannabis presents this year as a majority of those surveyed said it would be a part of the shopping list.

“As a company that places a premium on leveraging the power of research, data, technologies, and processes, our Cannabis Consumer Insights Holiday poll shares important revelations into how today’s cannabis consumers’ preferences and behaviors are shifting,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “As we close out the year, we look forward to continuing to share our learnings with the larger community, particularly as the sector rapidly evolves and cannabis consumers shift their behaviors.”

The national survey was commissioned by Jushi and conducted by Pollfish. It was overseen by Associate Professor at ArtCenter College of Design, Interaction Designer, Futurist and Jushi Experience Director Julian Scaff and it found that cannabis consumers 21 years and older in adult-use states overwhelmingly plan to consume cannabis as part of their holiday celebrations this season. Furthermore, the majority of respondents plan to give cannabis as gifts this holiday season. The survey also revealed cannabis consumers’ favorite types of cannabis products, with flower and pre-rolls together taking the combined top spot, followed by edibles and vapes.

Cannabis Gets Festive

In the survey, more than nine out of 10 respondents (91%) said that they plan to use cannabis as part of their holiday celebrations this year. In addition, when asked how much is typically spent on cannabis per month, 27% of respondents reported spending $100 to $150, 25% reported $50 to $100 and 20% reported $150 to $200.

The New Stocking Stuffer

An overwhelming majority (76%) of respondents said they plan to give cannabis or related products as gifts this holiday season. However, even more respondents stated that they planned to give cannabis as gifts when full legalization is enacted. When asked, “if cannabis was legal across all of America, would you be more likely to purchase cannabis or cannabis-related products as holiday gifts,” 88% stated yes.

Driving Factors in Selecting Cannabis Products

When asked to rank the two most important factors in choosing a cannabis product, THC level (50%) and price (49%) took the top slots. In terms of favorite types of cannabis products (check all that apply),” respondents listed: flower (52%) and pre-rolls (46%) as the combined favorite, followed by edibles (65%), and then, vapes (46%). Seventy-four percent of respondents reported that the specific strain (i.e., “Sour Diesel”) is important or very important in choosing a cannabis flower product. Additionally, when asked “how important is the brand of a cannabis product to you,” 74% of consumers stated it was important or very important.

Home Delivery, Online and Express Checkout

When asked “how do you typically shop for cannabis,” the majority of respondents said shopping in-store at a dispensary was their preferred method (58%). However, purchasing online and getting express or curbside pickup came in at 27%, while ordering online and getting home delivery came in at 16% – signaling an ongoing shift in retail’s digital and physical convergence, as well as the impact COVID-19 has had on shopping behaviors.

Health & Wellness: Cannabis & Alcohol Consumption

When asked “what do you use cannabis for (check all that apply), anxiety/stress took the top placement with 72% of the vote, followed by sleep at 57% and pain at 54% as the most common ailments people are managing with cannabis. Nearly a quarter (24%) of the poll’s respondents stated they are drinking less, and more than 15% stated they stopped drinking alcohol because of cannabis. However, 23% stated they consume more alcohol since using cannabis.


StaffOctober 18, 2021
employment-people-services.jpg?fit=1200%2C800&ssl=1

5min15580

Two leading cannabis companies have made major changes in the C-suite on Monday morning.

HEXO

The biggest move came from HEXO Corp.  (TSX: HEXO)(NASDAQ: HEXO) which announced that its CEO and Co-Founder Sebastien St-Louis was leaving immediately and that the company was engaging in a structural reorganization. In addition to the CEO, HEXO said that its Chief Operating Officer, Donald Courtney was also out. The Special Committee of the Board for Succession said it was in advanced discussions with a preferred CEO candidate and expected to make an announcement soon. Courtney will remain as COO until a suitable replacement is named.

The shakeup comes not long after Hexo reported that its third-quarter fiscal 2021 that ended in April, showed total revenue sliding by $10.2 million sequentially to $22.6 million. Since then, the company moved its shares to trade on the NASDAQ and closed on a $144 million offering. The company also closed two acquisitions 48North and Redecan.

“Building HEXO from the ground-up to become number one in Canada has been the highlight of my career,” said Sebastien St-Louis. “Without question, HEXO’s future is bright – I am so proud of the team we established, the brands we launched, and the loyalty our customers have shown us. As a significant shareholder, I look forward to the company’s next exciting stage of growth.”

Hexo said in a statement that its next leader would be well-positioned to integrate its recent acquisitions and “leverage the company’s lean production capabilities, solid brands, and robust product offering to lead HEXO through its next phase of strategic evolution.”

“On behalf of the entire organization, I would like to thank Sebastien for his tremendous impact on the Canadian cannabis industry. Through his years of dedication, he has helped build HEXO into a market leader in Canada,” said Dr. Michael Munzar, Chair of the Board. “The Board has established a Special Committee for Succession to identify a new CEO with the experience to defend HEXO’s position as a market leader in Canada and secure our place as a top-three global cannabis company.”

Jushi

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced the appointment of Edward (“Ed”) Kremer as its new Chief Financial Officer. Kremer brings over 20 years of financial leadership experience across a wide variety of industries, including technology, fashion, manufacturing, wholesale distribution, licensing, and retail. Jushi also announced that Kimberly Bambach has stepped down from her role as CFO effective immediately, but will remain with the company in a support role through December 1, 2021. Kremer most recently served as Chief Operating and Restructuring Officer of Le Tote and Lord & Taylor, overseeing the organization’s M&A and restructuring efforts.


StaffOctober 8, 2021
shutterstock_734570197.jpg?fit=960%2C720&ssl=1

15min30170

Green Market Report asked some of the top technology leaders in the cannabis industry for their thoughts on how tech is changing the cannabis world. Here’s what we learned:

Simplifya Co-Founder & Chief Executive Officer Marion Mariathasan

   “Technology in every industry has enabled advancement to happen faster, and the cannabis industry is no different. Due to the fragmented regulatory environment, we knew remaining compliant would be a real challenge for businesses, but one that could be addressed through the creation of advanced technologies. We set out to take what was previously an archaic way of approaching compliance and developed software that would help cannabis entrepreneurs save time and money, drive efficiencies and create new opportunities. Beyond owners and operators, we also see technologies playing a vital role in how governments, regulatory bodies, insurers, cannabis-related banking and financial institutions also remain compliant under FinCEN Cannabis Banking Guidance. 

Whether it’s POS, data, commerce, social networks or compliance, technology continues to allow the industry to solve some of its most challenging problems while accelerating growth at a rapid rate. As Simplifya enters the multi-million dollar banking, financial and payment-related services sector, we plan to debut new software and advanced technologies that automates and simplifies mandated complex processes necessary to keep the industry moving ahead in a compliant way.” 

Marion Mariathasan is the CEO of Simplifya, the cannabis industry’s leading regulatory and operational compliance software platform. The company’s suite of products takes the guesswork out of confusing and continually changing state and local regulations. Featuring SOPs, badge tracking, document storage, tailored reporting and employee accountability features, the company’s Custom Audit software reduces the time clients spend on compliance by up to 45 percent. 

Marion is also a serial entrepreneur who has founded or advised numerous startups. He is an investor in 22 domestic and international companies, four of which he serves as a board member: Ceylon Solutions, a cannabis and non-cannabis software development company; Leafwire, the largest cannabis social network; ilios, a relationship app that matches users based on characteristics derived from astrology and numerology algorithms; and Simplifya. Marion is a regular guest speaker at events such as Denver Start-Up Week, Colorado University’s program on social entrepreneurship, and the United Nations Global Accelerator Initiative. 

 


Jushi Holdings Inc. Chief Creative Director Andreas “Dre” Neumann

“In the cannabis sector, digital consumers are in the driver’s seat. We believe technologies will continue to play a critical role, and that by taking the time to implement research, data and digital technologies, we have a competitive advantage. By constantly studying trends data, we foresaw that the digital and physical retail convergence would accelerate with the rapid growth of home delivery and express channels. Early on we were focused on ways to remove friction, build trust, and fine tune the entire customer experience. We use research data and technology-based omnichannel strategies to seamlessly serve the needs of the widest range of customers, and that really goes to the core of our ethos of improving peoples’ lives.

At a higher level, we’ve also integrated our data sources and spent time building out a custom data warehouse. This has not only helped us break down information silos, but has also allowed us to understand the business and our customers much more holistically. We plan to keep evolving with new technologies and programs that drive efficiencies in our retail experiences and operations. I’ve always been a big advocate for technological solutions — none of this would be possible without it — so for us, tech will be a priority for the future of Jushi and instrumental in defining the entire cannabis sector.”

In his role at Jushi, Dre and his creative team are charged with leading Jushi’s creative, marketing and communications efforts as well as ensuring the company’s successful entrance into e-commerce, cutting-edge digital user experiences and his efforts have already brought a tremendous amount of added value to the company and its shareowners. 

Dre is a serial entrepreneur who has founded numerous successful creative and technology companies and is a disruptive thinker, who before joining Jushi, served as the creative director and head of content for Idean, a leading global design agency that creates powerful digital experiences and uses design as a strategic tool to transform companies. He founded a partnership with British multinational communications and advertising agency network with 114 offices in 76 countries and over 6,500 staff, Saatchi & Saatchi UK, where he implemented creative strategies such as launching a branded content unit called Gum in an effort to reach more young people, who are increasingly tuning out traditional advertising. 

In addition to being a known and respected leader in the creative and technology arenas, Dre is known for his photography and work with artists such as Queens of the Stone Age, Iggy Pop, Foo Fighters, ZZ Top, Lenny Kravitz, and many others. He has also been cited as one of the world’s top rock photographers and will be featured in an upcoming documentary on Amazon scheduled to premiere in early 2021.

 

Navin Anand, Chief Technology Officer at springbig

“The cannabis industry is adopting native and cloud technologies at an ever increasing rate. Computing power has increased exponentially (at an affordable cost), so we all have supercomputers on hand, which helps development teams tackle AI/ML problems, predictive analysis, user segmentation, early fraud detection and more. Technology also has added tremendous value in the form of agri-tech, cloud evolution, and data science for improving this industry as a whole.

At springbig, we are leveraging technology to push the limits and capture trends that help our merchants achieve goals above and beyond 100%. The spingbig platform provides the ability for our partners to be in constant contact with end users. We have other offerings that provide numerous opportunities for improvement of user experience, instore, e-commerce and omni.”

Navin is the CTO of springbig, a leading provider in customer loyalty and text message communications solutions for cannabis retailers and cannabis brands. Founded in 2017, springbig offers a single source of truth CRM that becomes the database of record for in-store and online customers that captures key purchasing and behavioral data and seamlessly integrates with existing dispensary POS and eCommerce systems. Navin has over 15 years experience in software engineering including leading a team of 100 engineers at Verifone, one of the world’s largest multinational payment processing and POS solution providers. In his time at Verifone, Navin crafted solutions for blue-chip brands including McDonalds, YUM Brands, and Visa.

Navin is recognized as a data-driven leader and problem solver who is able to streamline the software engineering delivery and QA process through advanced systems automation and project management, reducing time to delivery and aligning various IT sub-departments into a common system that speak the same language.

 

 

 

Cathy Corby Iannuzzelli, Co-Founder and Chief Payments Officer at KindTap

“As a fintech company in the cannabis space, we can wholeheartedly say that technology is shaping the future of the industry with the consumer at the forefront of the conversation. From convenience to compliance and now even our credit payment option with loyalty points, advances in technology are bringing the consumer the best experience possible while still keeping all the backend bells & whistles legally sound.”

Cathy Corby Iannuzzelli is a payments executive with extensive experience in prepaid, debit, credit, and emerging payments and broad and deep knowledge of issuing and acquiring sides of the market. In 2019, Cathy joined KindTap, a fintech company with a team that was focused on the same cannabis payments problem she spotted a few years back. Together in September 2021, they formally launched KindTap and are the first company to bring a credit payment option to the cannabis industry. 

KindTap launched first to the Massachusetts market and will hit multiple US markets, including Florida, Maine, and New York by the end of 2021, bringing consumers immediate, revolving credit lines for upfront cannabis purchases and allowing merchants to seamlessly accept digital credit payments.  About 3 years ago while working for a client in Denver, Cathy became aware of how broken payments were in cannabis. Broken isn’t even the right word – payments simply didn’t exist in the cannabis market. Cathy’s pioneering spirit kicked-in and she refocused her consulting to the cannabis segment. 

 

 

 

Socrates Rosenfeld, Co-founder & CEO of Jane Technologies

“Our goal at Jane has always been to provide value for the entire ecosystem; we want customers to make informed purchasing decisions, and we want sellers to succeed. As the largest e-commerce platform in North American cannabis, the digitization of the industry has allowed us to keep the industry in line with the mainstream, allowing shopping for cannabis to be as accessible as shopping online for everything else in the world, all while ensuring an even playing field for brands and dispensaries.”

Socrates Rosenfeld is the Co-Founder and CEO of Jane Technologies. Socrates began using cannabis as a way to re-acclimate to civilian life upon return from active duty, but found himself questioning the origins of cannabis since it was illegal at the time. Fast forward to today and Socrates is now the founder and CEO of Jane Technologies- the e-commerce solution for legal cannabis retailers and brands. He holds a B.S. in Leadership & Management Studies from the United States Military Academy at West Point Academy and an MBA from the MIT Sloan School of Management. He is a U.S. Army Veteran and previously served as a commander of an Apache helicopter company. 

 


StaffSeptember 13, 2021
Natures.jpg?fit=960%2C711&ssl=1

4min11940

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) has closed its previously announced acquisition of Massachusetts-based Nature’s Remedy in a deal valued at $91.2 million. Jushi also noted that the deal was revised resulting in 4.3 million fewer shares issued to Nature’s Remedy. However, Jushi did pay an additional $2.9 million in cash to acquire excess inventory worth $17.5 to $22.5 million at prevailing wholesale prices.

“We are excited to officially enter the Massachusetts market, adding Nature’s Remedy, a vertically integrated business operating high-quality, well-managed assets” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi. “With its strong, defensible retail position and a scalable cultivation footprint, Nature’s Remedy offers significant opportunities for us to expand and grow our presence in this rapidly maturing adult-use market. I look forward to working with our new colleagues to introduce our complete line of industry-leading brands and products into the wholesale market and at Nature’s Remedy’s retail stores.”

Nature’s Remedy

Nature’s Remedy currently operates two retail dispensaries, in Millbury, MA and Tyngsborough, MA, and a 50,000 sq. ft. cultivation and production facility in Lakeville, MA, with approximately 22,000 sq. ft. of high-quality indoor flower canopy and state-of-the-art extraction and manufacturing capabilities. The company expects to execute on the significant opportunity to expand Nature’s Remedy’s wholesale revenue in the fourth quarter, driven by additional cultivation capacity as well as the planned resale of excess inventory at the Lakeville Facility.

Deal Terms

Jushi acquired Nature’s Remedy for an upfront payment of $91.2 million, which included $40.0 million in cash, approximately $34.7 million in stock, an $11.5 million unsecured three-year note and a $5.0 million unsecured five-year note. Jushi has also agreed to issue up to an additional $5.0 million in stock and a $5 million increase to the principal balance of the 3-Year Note upon the occurrence or non-occurrence of certain conditions after the closing date, bringing the total potential consideration for the acquisition paid by the company to $101.2 million. The revised purchase price represents a multiple of 2.7 to 3.0x Nature’s Remedy’s expected full-year 2022 EBITDA of US$34 to US$38 million.


StaffAugust 25, 2021
beyond.jpg?fit=960%2C540&ssl=1

4min12700

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) released its financial results for the second quarter of 2021 ending June 30, 2021, with total revenue increasing 219% to $47.7 million over last year. This was a sequential increase of 14.6%. year. Jushi also reported a net income of $4.8 million, which was a $31.6 million sequential improvement. The company said the increase was primarily driven by an increase in revenue, gross profit, and a gain on fair value derivative liabilities.

Jushi also gave full-year 2022 guidance for revenues to be between $375 to $425 million and Adjusted EBITDA to be between $110 to $130 million on an IFRS basis. As of June 30, 2021, Jushi had $126.8 million of cash and short-term investments.

“I’m very pleased with our performance in the second quarter; we achieved strong sequential revenue growth, industry leading year-over-year revenue growth, and maintained Adjusted EBITDA profitability, while continuing to invest in our strategic growth initiatives,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “With our strong balance sheet we are well positioned to execute on our plans, which includes expanding our national retail footprint as well as building out our cultivation and processing assets to support increased demand from both patients and consumers for our high-quality products.”

Jushi said that the net income was $4.8 million, or $0.03 per basic share and a net loss of $(0.09) per diluted share, compared to a net loss of $(26.8) million, or $(0.18) per diluted share in Q1 2021. “The net loss of $(0.09) per diluted share in Q2 2021 was primarily due to the dilutive effects of the derivative warrants as accounted for under IFRS.” The company said that the $31.6 million improvements in net income in the second quarter were primarily driven by the gain on fair value derivative liabilities of $21.1 million.

Mr. Cacioppo commented, “Looking ahead to the remainder of the year, we expect to open an additional seven BEYOND/HELLO dispensaries, add two dispensaries and a grower-processor facility in Massachusetts through the acquisition of Nature’s Remedy of Massachusetts and continue to build out our Pennsylvania and Virginia grower-processor facilities, which will fuel our business as we head into 2022.”

Mr. Cacioppo added, “Assuming our Massachusetts acquisition closes late in the third quarter, we are revising our full year 2021 revenue guidance range from $205 to $255 million to $220 to $230 million and our 2021 Adjusted EBITDA guidance range from approximately $40 to $50 million to $32 to $37 million. The reduction in Adjusted EBITDA guidance relates to (1) the Virginia market developing slower than we initially forecast, mostly due to flower launching in September versus our assumption in July, the Company pivoting to a larger store format and the timing and regulations associated with the adult use program, which resulted in new store openings being delayed; (2) reducing the flower room capacity at the existing 89,000 square foot Pennsylvania grower-processor facility to accommodate post-harvest expansion related to expanding to a much larger facility than initially anticipated at acquisition in the summer of 2020; and (3) growth in corporate overhead that reflects the opportunity and challenges of the very significant growth associated with the larger than planned grower-processor expansion and the upcoming adult use markets in VA and PA, both of which may happen by 2023.”


Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 14 hours

It’s Time For Institutional Investors to Make a Psychedelics Play

@GreenMarketRpt – 14 hours

Harborside Now Fully Owns Seaside

Back to Top

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.