Minnesota Archives - Green Market Report

StaffSeptember 21, 2022
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6min2240

The Daily Hit is a recap of cannabis business news for Sept. 21, 2022.

ON THE SITE

Vireo Health Sues Minnesota Over Hemp Edibles

Medical marijuana company Vireo Health, a subsidiary of Goodness Growth Holdings (OTC: GDNSF) is fighting back against a recent loophole for edibles in the state of Minnesota. The conflict stems from a recent amendment to Minnesota laws that was enacted on July 1. The statute now allows anyone to sell edible products with up to 5 milligrams of THC derived from hemp and a THC concentration of up to 0.3% to anyone over the age of 21. The complaint against the state says that the hemp-derived edibles are chemically identical to medical cannabis-derived edibles sold by Vireo that have the same type, quantity and concentration of THC. Read more here.

Florida Issues New Medical Marijuana License To Black Farmer

On Wednesday, Florida regulators issued a long-awaited medical cannabis business license to the state’s first Black marijuana company owner, an inevitable result of a 2017 law that required the state expand the MMJ industry. The winner beat out 11 other applicants for the license, and perhaps the only certainty now is that there will be a wave of lawsuits from those who lost out, the Orlando Sentinel reported. Read more here.

Video: GMR Cannabis Tech Summit

On September 8, 2022, the Green Market Report hosted its first Cannabis Tech Summit. The Summit was sponsored by KCSA Strategic Communications, Headset, Agrify, Springbig, Zelira Pharmaceuticals, Metrc, Mattio Communications and The Bureau cannabis packaging. The event also featured the first GMR Cannabis Tech Awards. The feedback for the event was positive and especially noted the diversity of the panels and attendance as well as the panel topics. Watch now.

BLAZE Honored For Best Delivery Tech At Green Market Report Tech Awards

When delivery started to become a key part of the cannabis industry, most cannabis software solutions didn’t address it as its own consideration. Instead, they tried to be everything to everyone, and as a result, they risked not being able to deliver for operators or consumers. Enter BLAZE Solutions. 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.

IN OTHER NEWS

Oklahomans Won’t Vote On Recreational Marijuana This November

After several legal battles State Question 820, the petition to legalize recreational marijuana in Oklahoma will not be on the November ballot. The Oklahoma Supreme Court denied the group’s request to allow it to go to a statewide vote, saying the organizers of SQ820 “have no clear legal right and respondents (State Election Board) have no plain legal duty” to put the petition on the Nov. 8, 2022, ballot. Read more here.

1st Circ. Declines To Review Pot Interstate Commerce Ruling

The full First Circuit on Wednesday declined to review a split panel decision that found the dormant commerce clause of the U.S. Constitution applies to the federally illegal medical marijuana industry. The decision upheld the ruling that struck down Maine’s residency requirement for cannabis licensure. Read more here.

Trulieve Wins Georgia Production License

The Georgia Access to Medical Cannabis Commission awarded Trulieve GA a Class 1 production license. Trulieve patients in Georgia will be able to choose from a variety of low-THC oil products in both oral and topical forms in the near future. Read more here.

Clever Leaves Partners With House of Kush for International Expansion

Clever Leaves Holdings (Nasdaq: CLVR), a multinational operator and licensed producer of pharmaceutical-grade cannabinoids, announced a partnership with U.S. cannabis-branded genetics company House of Kush to be the exclusive grower and distributor of proprietary genetics globally. Read more here.


Adam JacksonAugust 11, 2022
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Goodness Growth Holdings, Inc. (CSE: GDNS) (OTCQX: GDNSF) posted positive results on Thursday — driven by new retail store sales and new regulatory changes in nascent state markets.

The multi-state cannabis company reported financial results for its second quarter ended June 30, 2022.

Goodness Growth delivered approximately $21.1 million in total revenue during the period, a gain of 48.2% versus the same period last year — beating the Yahoo Finance Average analyst estimate for revenues of $19.62 million.

The net loss in the quarter was $6.2 million versus a net loss of $7 million in the same period last year. The company said that the change versus the prior year was driven by the improvement in operating income, offset by increased interest expenses. Operating income in the second quarter was $300,000, a gain of $3.5 million versus an operating loss of $3.2 million in the same period last year. The improvement in operating performance was driven by increased revenue and gross profit dollars, as well as a slight reduction in total operating expenses, the company said.

“Our second quarter results reflect improved margin performance driven by continued growth in our MinnesotaNew Mexico, and Maryland markets, as well as benefits from the recent wind down of operations in Arizona which we discussed last quarter,” said chairman and CEO Kyle Kingsley.

Gross profit was $10.4 million, or 49.2% of revenue, versus a gross profit of $6.9 million or 48.6% of revenue in the same quarter last year. The company said that the improvement in gross profit dollars was driven by higher production volume and increased sales, with relatively stable margin performance.

The company said it saw $10.1 million worth of total operating expenses in the second quarter, a reduction of $100,000 versus $10.2 million in the same period last year.

Goodness Growth said that total other expenses were $5.4 million during the second quarter, versus $2.9 million in the same period last year. It said that the variance in other expenses is primarily attributable to increased interest expenses related to the company’s credit facility.

EBITDA was $1.1 million during the second quarter, versus a loss of $2.4 million in the same period last year.

For adjusted EBITDA, the company posted $2.3 million in the quarter, versus a loss of $1.0 million in the prior year. Diluted loss per share in the second quarter was five cents versus diluted earnings per share of six cents in the same period last year.

“GAAP gross margin performance includes activities related to our Arizona operations, which were wound down prior to the end of the second quarter,” Kingsley added. “Excluding Arizona operations, we estimate that second-quarter pro forma gross margins would have been approximately 55.0 percent.”

The company said it had 128,111,328 equity shares issued and outstanding on an as-converted basis, and 159,619,637 shares outstanding on an as-converted, fully diluted basis.

Total current assets for Goodness Growth were $46.4 million. The company said it had $17 million worth of cash on hand, which included net proceeds received from an increase on its delayed draw loan of $13.5 million during the second quarter. The company’s current liabilities were $18.5 million.

“Strong sales growth catalysts resulting from the recent regulatory changes in Minnesota and New Mexico are expected to persist into next year, and we’re also looking forward to contributions from the launch of edibles products which occurred in Minnesota earlier this month, Kingsley said. “Finally, our expansion project in New York is progressing ahead of the launch of adult-use sales in that important market, and we continue to expect our pending transaction to be acquired by Verano Holdings Corp. will close sometime during the fourth quarter of this year.”


StaffMay 14, 2021
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5min1210

On Thursday, Minnesota’s House of Representatives voted in favor (72-61) of HF 600, a bill that would legalize cannabis for adults 21 and over. So it wasn’t an overwhelming vote to approve. Unfortunately for the state’s residents, the next step for the bill is getting Senate approval and Majority Leader Paul Gazelka (R) has said the Republican caucus is strongly opposed.

This is despite the fact that a polling shows Minnesotans support legalization is growing. 70% said they were in favor of legal cannabis, which has grown from just 30% in 2014. 85% of Democrats want legal marijuana, while only 37% of Republicans say yes. 38% of Republicans in the state have just said no.

Karen O’Keefe, director of state policies at the Marijuana Policy Project said, “Minnesotans have suffered far too long under prohibition. Rather than continuing to waste resources on enforcing this failed policy, the Senate should heed the will of the voters and pass legislation to legalize cannabis for adults. Legalization would create thousands of jobs and hundreds of millions in tax revenue, and it would reduce unnecessary stops, searches, and arrests that unfairly and unequally target Black Minnesotans.”

The legislation was sponsored by House Majority Leader Ryan Winkler and it would legalize possession and cultivation of limited amounts of cannabis, while setting up an equitable, regulated system for cannabis sales. It includes funding for community renewal along with cannabis industry training and start-up funding. The grants would focus on individuals facing barriers to education or​ employment, areas with elevated rates of poverty, workers with less than three years of experience, and farmers.

For Minnesotans, this is the first time any cannabis legislation for adult use has been approved. The Democrat-controlled House chamber voted to approve the measure, thus sending the bill to the Republican-majority Senate for further consideration. Still, the bill had received approval from twelve separate legislative committees.

“It’s time for Minnesota to become a leader in the midwest when it comes to sensible marijuana policy,” said NORML State Policies Manager Carly Wolf. “Not only would the passage of this bill allow police and courts to reprioritize their limited resources toward fighting serious crime rather than interacting with otherwise law-abiding Minnesotans over low-level possession offenses, but it would also provide relief to thousands suffering the collateral consequences of a marijuana arrest and conviction. I strongly encourage members of the Senate to follow the will of their constituents, a majority of whom support this policy change, and consider this common-sense remedy to the failed policy of prohibition.”

 

 


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