Medicine Man Technologies Archives - Green Market Report

StaffApril 18, 2023


The Daily Hit is a recap of the top financial news stories for April 18, 2023.

On the Site

House Committee Launches Probe into FDA’s Inaction on CBD Regulation

Despite the legalization of cannabis containing less than 0.3% THC by the 2018 farm bill, the FDA has yet to issue regulations for CBD products. For years, hemp companies and trade groups have urged the FDA to regulate CBD as a dietary supplement, a proposal the agency declined earlier this year. Read more here.

Schwazze to Buy Standing Akimbo for $10.5 Million

Medicine Man Technologies, better known as Schwazze (OTCQX: SHWZ) (NEO: SHWZ), will acquire Standing Akimbo LLC, a medical cannabis dispensary in Denver in a deal valued at $10.5 million. The acquisition will paid in a combination of cash and stock. It is expected to close in the third quarter of 2023 assuming approval form regulatory authorities. Read more here.

Pineapple Ventures Accused of Fraud

A new lawsuit accuses cannabis insider Vincent Zadeh of committing a new cannabis fraud scheme. Investor Greg Levin alleges that Vincent Mehdizadeh, who goes by the name Vincent Zadeh, convinced him to invest $290,000 into Pineapple Ventures with promises of a $5,000 monthly dividend payment. The promised payments were never delivered, and Levin was unable to recoup his investment. Read more here.

Indiva’s Profits Tighten as CEO Calls For Higher THC Edibles Potency Limits

Canadian cannabis edibles producer Indiva Limited (TSE: NDVA) generated $10.3 million in gross revenue in the fourth quarter, a 17.1% sequential increase from the third quarter, but slightly lower than 2021’s fourth quarter. Edible product sales dropped versus last year, accounting for 80.6% of net revenue in the fourth quarter. Read more here.

In Other News

Washington state

Washington is ready to enter the interstate marketplace for cannabis products, when and if the federal government decides to legalize marijuana. The Legislature approved Senate Bill 5069 to allow state companies to enter marijuana import/export compacts with other states immediately after Congress makes the move. The bill passed the House on March 1 and the Senate on April 12, both with bipartisan support. Read more here.


A company’s challenge to Utah’s medical marijuana licensing scheme fell flat in the Tenth Circuit after a three-judge appellate panel ruled Tuesday that a state licensing agency had reasonably denied the company a cultivation license in favor of those with more community ties. Read more here.

New York

New York Gov. Kathy Hochul announced a new public education to encourage cannabis consumers to purchase marijuana from licensed operators. The campaign, “Why Buy Legal New York,” aims to promote “safer, informed, legal purchases of cannabis from licensed dispensaries,” the governor’s office said in a news release. Read more here.

StaffMarch 29, 2023


The Daily Hit is a recap of the top financial news stories for March 29, 2023.

On the Site

Columbia Care Sales Fall in Fourth Quarter as Company Exits Markets

Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) saw its net loss for the fourth quarter ballooned to an eye-popping $300 million, compared with last year’s net loss of $53 million for the same quarter. Read more here.

Schwazze Loses $18.5 Million Despite ‘Record’ Revenue

Denver-based Medicine Man Technologies Inc., which does business as Schwazze (OTCQX: SHWZ) (NEO: SHWZ), posted an $18.5 million loss for the full year of 2022, due to various acquisitions and its entrance into New Mexico. Read more here.

Unrivaled Brands Posts Profits, Reduces Liabilities 40% Following Restructure

On the heels of a turbulent year of restructuring, Unrivaled Brands (OTCQB: UNRV) posted positive preliminary financial results for the fourth quarter of 2022, with operating profit for the period reaching $8.8 million. Read more here.

CV Sciences Runs Low on Cash as Sales Fall from Last Year

CV Sciences Inc. (OTCQB: CVSI) saw fourth-quarter sales fall 22% compared to a year ago, due to strong competition and continued supply chain challenges. Sales increased 3% sequentially in the fourth quarter to $3.9 million versus $3.8 million in the third quarter of 2022. Read more here.

Nova Cannabis Sees Record 2022 Revenue, Driven by Flexible Pricing, SNDL Partnership

Nova Cannabis Inc. (TSX: NOVC) posted impressive growth in its fiscal 2022, driven by record sales, more stores, and key partnerships. The Canadian cannabis retail company posted its financial and operating results for the fourth quarter and full-year 2022 ending Dec. 31, 2022. Read more here.

In Other News

Curaleaf Holdings

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) entered into a definitive agreement to acquire Deseret Wellness, the largest cannabis retail operator in Utah, in a cash and stock transaction valued at approximately $20 million. The transaction is expected to close imminently, subject to customary closing conditions. Read more here.

CEA Industries

CEA Industries Inc. (Nasdaq: CEAD, CEADW) posted revenue for the fourth quarter of 2022 of $1.5 million, compared to $3.1 million for the same period in 2021. The decrease was primarily attributed to supply chain and project delays as well as a reduction in the size and number of signed contracts during 2022. Read more here.

Adam JacksonAugust 12, 2022


Schwazze (OTCQX: SHWZ) posted positive results on Thursday as the company expands in its quest to become a commanding regional MSO.

The Colorado-based seed-to-sale operator — formerly known as Medicine Man Technologies — delivered its second-quarter financial report card ending June 30, 2022.

Schwazze delivered approximately $44.3 million in total revenue during the period, a 44% gain versus the same period last year — right in line with the Yahoo Finance Average analyst estimate for revenues of $44.26 million.

The company said that the increase was due to rising sales of its products as well as revenue from its new retail acquisitions. Additionally, the company is finding profits in newly-recreational markets such as New Mexico since April.

Schwazze said that wholesale revenues in Colorado decreased due to “increased cultivation capacity in the state resulting in an over-supply of wholesale cannabis materials.”

The company also reported a net income of $33.8 million versus a net loss of $4.4 million in the same period last year. The gain is a reversal after losing $26.8 million in the previous quarter.

Diluted earnings per share in the fourth quarter was $0.24 cents versus diluted earnings per share of eight cents in the same period last year — above a diluted loss per share of six cents in the previous quarter, according to SEDAR filings.

“Similar to the rest of the country, the cannabis industry in Colorado is also experiencing a slowdown in growth compared to the last couple of years,” CEO Justin Dye said. “Schwazze, however, is demonstrating that our regional strategy, built on a customer-first approach, developing significant scale, building brands, and leveraging data analytics and technology is not only sound but gaining momentum as demonstrated by revenue and unit sales growth, customer loyalty and by once again outpacing the legacy market growth by approximately 12%.

We believe this model will travel well to other states as we find attractive opportunities. Despite share price weakness driven by broader market influences, we remain bullish on our business and have conviction that as Schwazze continues to deliver superior operating results that our shareholders will be rewarded.”

Schwazze is lowering its guidance for 2022 revenue, citing “challenging Colorado market conditions.” Schwazze’s new forecasted range for revenue is $175 million$200 million, far below a range of $220 and $260 in the previous quarter. Adjusted EBITDA guidance is estimated to be $60 million$72 million, down from previous quarter expectations of $70 to $82 million profit.

“During Q2 we focused on completing integration of our acquisitions and made sure that we used our resources effectively,” said CFO Nancy Huber. “We are focused on reducing operating and SG&A expenses and judiciously investing growth capital to ensure adequate liquidity and profitability despite difficult market conditions in Colorado, which we believe to be transitory and temporary. Our balance sheet remains strong, and we have ample liquidity.”

“We are focused on delivering positive cash flow net of acquisition costs for the year while driving organic growth and making smart acquisitions,” she added.

Adjusted EBITDA was $15 million in the second quarter of 2022, versus earnings of $10 million in the same period last year.

Seeing It Through

The dialogue from leadership this quarter is one a bit more optimistic than the previous.

“As we continued our successful transformation into a Regional MSO in the first quarter of 2022, we met certain challenges, including the comparison cycling of an inflated Q1 2021, which was aided by stimulus checks and COVID lockdowns,” Dye said at the time. “Colorado’s high COVID rates during Q1 2022 also impacted sales and internal staff. The devastating Marshall Fires in and around Boulder in January of this year, caused one store to temporarily close and the store has been further impacted due to a displaced population in and around Boulder County.

Also, overall sales and a decrease in wholesale revenue was largely impacted by wholesale distillate pricing pressure and over-supply in the state of Colorado.”

Dye at the time did, however, express that he remained optimistic that the company would see rising profits as its expansion efforts bore fruit in emerging state markets.

Cannabis deal tracker Viridian Capital Advisors issued a “Buy” rating at a $2.55 price target for the company in last September, calling Schwazze a “profitable and cash generating operator in Colorado with a meaningful and scaling presence in the to-date fragmented state,” wrote Director of Equity Research Jonathan DeCourcey.

“We expect MSOs to increasingly target large established markets like Colorado to support growth in the absence of interstate sales,” DeCourcey wrote. “Furthermore we expect expansion to come in the form of large scale acquisitions of companies that can be plug-and-play contributors to results in order to excite investors and boost valuations. We believe GAGE’s recent takeout by Terrascend and Harvest’s Trulieve deal highlight this theme.

In our view, Schwazze would be a solid takeout candidate for any MSO with Colorado aspirations. We believe even the perception of an acquisition is likely to drive upside in the stock from current levels.”

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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


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