Unions promised stepped up recruitment as the cannabis industry expands.
Unions promised stepped up recruitment as the cannabis industry expands.
The Daily Hit is a recap of the top financial news stories for May 10, 2023.
New York Regulators Issue Revised Cannabis Industry Rules
New York’s much-awaited revised marijuana industry rules were issued Wednesday by the Office of Cannabis Management, to the delight of stakeholders who immediately began poring over them for significant changes. The new rules are also on the agenda for Thursday’s Cannabis Control Board meeting. Read more here.
Many New York Stakeholders Skeptical of New Illicit Market Enforcement Push
Following a new push by New York Gov. Kathy Hochul to crack down on unlicensed cannabis sellers across the Empire State last week, few in the legal industry expressed optimism that the policy would have the intended effect, with several predicting that the unregulated market would simply pivot instead of giving up. Read more here.
Missouri Cannabis Sales Pass $1 Billion, Connecticut Sales Down Slightly
Missouri and Connecticut both launched adult-use cannabis markets at the beginning of the year, but they’re seeing very different sales trends. Read more here.
Trulieve Cannabis Records Net Loss Despite High Revenue
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced a net loss despite significant revenue from retail sales for the first quarter ending March 31. The U.S.-based cannabis giant reported a revenue of $289 million for the quarter, with 95% resulting from retail sales. This missed the Yahoo Finance average analyst estimate for sales of $292 million. Read more here.
• Some AFC Gamma Clients Having Trouble Making Payments
• NewLake Capital Tenant Issues Cloud Yearly Revenue Growth
• Schwazze Turns a Profit in First Quarter, Continues Expansion
• Verano Revenue Up 12%, Adult-Use Sales in Connecticut Bolster Results
• Village Farms’ Canadian Cannabis Sales Grow
New York Conditional Adult-Use Retail Dispensary Licenses
A group of Conditional Adult-Use Retail Dispensary (CAURD) licensees have documented in a letter an “alarming and unacceptable” lack of communication and transparency among state cannabis regulators. The group of seven CAURD licensees, along with the Long Island CAURD Coalition and “several others” who signed anonymously, sent the letter late Tuesday night. Read more here.
The state of Vermont is cracking down on synthetic cannabis which officials say is creating confusion in the state’s fledgling legal marketplace. This includes delta-8 and delta-10 products. Read more here.
Both states launched adult-use markets at the beginning of the year.
The Daily Hit is a recap of the top financial news stories for April 25, 2023.
Cookies Lawsuit: Company Uses Threats, Violence, Kickbacks to Do Business
The leaders of global cannabis brand Cookies have been using threats, violence and financial kickbacks to enrich themselves at the expense of company shareholders, according to a lawsuit filed by two of the company’s investors. Read more here.
Missouri Cannabis Jobs Boom, Market Saturation Concerns Loom
Legalization of recreational cannabis in Missouri led to a surge in job growth within the industry, but the trend could be slowing as labor needs are met. The number of active licenses to work in the sector catapulted from 9,800 in October to more than 14,000 in March, after voters approved recreational marijuana use through a constitutional amendment last November. Read more here.
Schwazze to Buy Everest Apothecary in New Mexico for $38 Million
Denver-based Medicine Man Technologies Inc., which operates as Schwazze (OTCQX: SHWZ) (NEO: SHWZ), has signed definitive documents to acquire a batch of cannabis assets in New Mexico. The acquisition will allow Schwazze to manage Everest Apothecary, a non-profit corporation operating in the state. Read more here.
Data Confirms 4/20 is THE High Holiday
Now that 4/20 is officially in the rearview mirror, the bean counters say that this year’s holiday did not disappoint. Consumers clearly don’t care whether cannabis companies are making any money or not, they were here to party. Read more here.
Unrivaled Brands Posts Consistent California Revenue in Q1 2023
California-based Unrivaled Brands Inc. (OTCQB: UNRV) reported preliminary financial results for the first quarter 2023, showing revenue of $8.7 million and a gross margin of 48%. The bulk of revenue came from Unrivaled’s three retail stores and cultivation facility. Read more here.
In a lengthy answering brief filed Monday, the city of Sacramento asked the Ninth Circuit to uphold U.S. District Judge Kimberly J. Mueller’s order abstaining from and pausing a constitutional challenge filed by Kenneth Gay, who owns Peridot Tree Inc, which was denied entry into Sacramento’s equity program for failing to meet residency requirements, as Gay lives out of state. Read more here.
CBD of Denver
CBD of Denver Inc (OTC Pink: CBDD), having begun a restructuring of its operations in fourth quarter of 2022, reported that revenue increased to $113,478 during the quarter from $26, 907 in the previous quarter putting the company back on a growth trajectory that management expects to continue throughout 2023. Read more here.
Minnesota took a step closer to legalizing recreational marijuana for adults after the Democrat-controlled House passed the bill Tuesday. The House approved the measure on a 71-59 vote after a long debate that spanned from Monday night into Tuesday afternoon. Read more here.
The Daily Hit is a recap of the top financial news stories for April 20, 2023.
More Cannabis Investments Busted
Unsuspecting investors trusted these cannabis companies which they now accuse of fraud. The desire to be a part of the cannabis industry and promises of quick and hefty returns have caused many investors to lose their money. Read more here.
Police Pilot Roadside Cannabis Test in Missouri
A neuro-diagnostic company, Oculogica, said it has launched a pilot program to trial a new roadside cannabis test that supposedly provides immediate results, with a wider release slated toward the end of the year. Read more here.
Oregon Issues First Licenses For Psilocybin Facilitators
Oregon Health Authority (OHA) released a statement on April 18 noting that the authority had licensed the state’s first three facilitators for providing psilocybin services. Read more here.
GRN Holdings Completes Acquisition of Mendocino Green
GRN Holding Corporation, Inc. (OTC Pink: GRNF) has completed the purchase of Mendocino Green Inc, which includes a cultivation license, nursery license, and distribution license from one of the oldest cannabis license holders in California. Read more here.
Massachusetts Company Flips the Script on 4/20
April 20 may be the biggest sales day of the year for the vast majority of cannabis retailers, but Temescal Wellness is placing its priorities on employee mental health rather than profits for this year’s marijuana holiday. Read more here.
Dutchie Outage on 4/20
Technology platform Dutchie, which provides point-of-sale (POS) hardware for cannabis retailers across the United States, reported interruptions and outages on Thursday – the unofficial marijuana holiday 4/20 and one of the biggest sales day of the year in the industry. Read more here.
The marijuana industry in Illinois is expanding with more dispensaries set to open, but some workers are asking lawmakers to fix some of the rules. Read more here.
A bill in the Minnesota Legislature to legalize adult-use cannabis appears to be nearing the finish line, with a vote apparently in the state House slated for Monday. Read more here.
The Daily Hit is a recap of the top financial news stories for April 6, 2023.
Feds Charge Former Michigan House Speaker in Marijuana Investigation
Federal prosecutors announced corruption charges Thursday against former Michigan House Speaker Rick Johnson and three others in connection to bribes paid for marijuana licenses. The announcement, made by the U.S. Attorney’s Office in Grand Rapids, comes on the heels of a multiyear investigation into Johnson’s time chairing the former Michigan Medical Marihuana Licensing Board. Read more here.
Tobacco Titan Teams Up with Charlotte’s Web on New Drug Venture
Hemp extract wellness giant Charlotte’s Web Holdings Inc. (TSX: CWEB) (OTCQX: CWBHF) entered into a joint venture with botanical drug developer AJNA BioSciences and London-based British American Tobacco (NYSE: BTI) to develop a new drug for an an undisclosed neurological condition. Read more here.
Ohio’s Second Round of Dispensaries Slow to Open
Ohio’s expansion of its medical marijuana industry last year was supposed to bring another 73 dispensaries to the state, but so far, only 14 of those have opened for business – despite rules that required them to be ready for customers within 270 days. Read more here.
Missouri Continues to Siphon Customers from Illinois
The number of out-of-state buyers coming to Illinois for cannabis dropped in March, a signal that neighboring Missouri’s booming recreational market continues to lure customers away. But the state’s retailers still raked in $134.8 million in sales for the month. Read more here.
Lifeist Grows Roilty Brand as Revenues Rise in 2022
Product expansion has proven to be a winning strategy for Canadian health-tech company Lifeist Wellness Inc. (TSXV: LFST) (OTCMKTS: NXTTF), which owns cannabis brand Roilty. Roilty’s unit sales rose by more than 30% since the fourth quarter of 2022, with the expansion of its product line being a main contributing factor. Read more here.
Tilray Medical, the medical cannabis division of Tilray Brands Inc. (Nasdaq: TLRY; TSX: TLRY), expanded in the Czech Republic through a new export and distribution partnership with Cansativa Group. The new strategic partnership broadens Tilray Medical’s distribution of EU-GMP certified medical cannabis products across pharmacies and hospitals to support medical cannabis patient care. Read more here.
Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multistate cannabis operator, closed on a secured commercial loan with FVCbank for gross proceeds of $20 million. The proceeds of the loan will be used for working capital and other corporate purposes. Read more here.
A Massachusetts appeals panel cleared the former mayor of Amesbury against allegations that he interfered with a cannabis company’s application for a license, saying the company failed to show that the former mayor acted in bad faith. In an order filed Wednesday, the three-judge panel of the Massachusetts Appeals Court affirmed the dismissal of two counts against C. Kenneth Gray and one against the city in a suit brought by Kirby Mastrangelo and Candace Kattar, who run CKR Natural Solutions LLC. Read more here.
The Daily Hit is a recap of the top financial news stories for March 7, 2023.
Illinois Out-of-State Cannabis Sales Drop as New Missouri Market Proves Itself
Illinois saw its lowest number of out-of-state cannabis purchases since February 2021 – and Missouri’s new adult-use program could be behind the drop. Total recreational cannabis products sales by legal retailers also fell, hitting $120.5 million in February, the lowest since the same month in 2022. Read more here.
Illinois Craft Cannabis Growers Get Major Deadline Extension
The 88 social equity craft cannabis growers awarded permits by Illinois last year were granted a reprieve this past week, when the state Department of Agriculture pushed back a March 1 deadline to be operational by more than a year for many of those licensees. Read more here.
AFC Gamma Credit Losses Increase More Than 300% in 2022
AFC Gamma Inc. (Nasdaq: AFCG) reported an interest income of $21 million and a net income of $2.9 million for the fourth quarter ended Dec. 31, 2022. The company reported $0.14 per basic weighted average common share and distributable earnings of $12.6 million or 62 cents per basic weighted average common share for the fourth quarter of 2022. This beat the Yahoo Finance average analyst estimate for earnings of 58 cents and income of $18.3 million. Read more here.
Atlas Global Expands Retail in Middle East, Inks International Snoop Dogg Brand Deal
Atlas Global Brands Inc. (CSE: ATL) is rapidly moving to acquire valuable cannabis assets for its recent international venture after snapping up two pharmacies in Israel and inking an exclusive licensing agreement for Snoop Dogg’s brands. Read more here.
Colorado Cannabis Recall
The Colorado Department of Revenue alongside the Colorado Department of Public Health and Environment issued a health and safety advisory for marijuana sold at several stores in Colorado. DOR identified harvest batches produced by Green Street LLC that passed initial contaminant testing but failed retesting. Read more here.
Scotts Miracle-Gro (NYSE: SMG) CFO Matthew Garth said the company still sees promise in the struggling $100 billion cannabis market to which it sells indoor growing and hydroponic equipment. In the wake of “shifting tectonic plates” and oversupply issues, Garth said Monday that Scotts is rightsizing its Hawthorne segment that serves the cannabis market. Read more here.
The Daily Hit is a recap of the top financial news stories for March 6, 2023.
Investor Sues Tilray for False Claims on Inventory, ABG Deal
It’s been a minute since Tilray (Nasdaq: TLRY) went public, but investor Michael Hudson is suing the company for what he claims are “ breaches of fiduciary duties, unjust enrichment, and waste of corporate assets, and violations of the Securities Exchange Act of 1934.” Read more here.
Conservative Politics Still Shutting Down New State Market Opportunities
Political wrangling over legalizing both medical and recreational marijuana in various U.S. states continues as it does every year, but thus far in 2023, at least five states have formally defeated various attempts at creating new cannabis markets. Read more here.
ICYMI: Oklahoma to Vote on Adult-Use Cannabis Tomorrow
The state already has one of the loosest MMJ industries in the nation, with low barriers to entry for entrepreneurs, a liberal allowance of cannabis for essentially any medical ailment, and thousands of businesses that have sprung into existence since the market launch in 2018. Read a summary of the measure here.
Missouri Cannabis Sales Top $100 Million in February, Localities Weigh Adding Taxes
Missouri surpassed the $100 million mark in marijuana sales for the month of February, its first month ever of selling both medical and recreational cannabis after adult use launched on Friday, Feb. 3. With such a strong start to the Missouri market, dozens of municipalities and county governments are now considering adding local taxes to recreational marijuana sales. Read more here.
Your Take: 3 Things to Know About New York’s Retail Cannabis Rollout from an Applicant
Scott Mazza is the co-founder and chief operating officer of Vitality CBD in Buffalo, New York.
New York’s recreational cannabis rollout is going from bad to worse. Last November, an out-of-state lawsuit stopped conditional adult-use retail licenses in five regions. Then, in January, a federal court upheld the injunction. All the while remaining retail applicants have been left in the dark amidst a thriving gray market. Read more here.
Altria Group Inc. (NYSE: MO) entered into a definitive agreement to acquire NJOY Holdings Inc. for approximately $2.75 billion in cash payable at closing. The transaction terms include additional $500 million in cash payments that are contingent upon regulatory outcomes with respect to certain NJOY products. Read more here.
Bhang Inc. (CSE: BHNG) (OTCQB: BHNGF) signed a letter of intent to acquire 1352135 B.C. Ltd. to obtain access to minor-cannabinoid, cannabis, THC, and psychedelic-related patents and intellectual property pivotal in building Bhang’s portfolio beyond chocolate and edible cannabis brands. Read more here.
New Leaf Ventures
New Leaf Ventures Inc. (CSE: NLV) (OTC: NLVVF) received approval from the Washington State Liquor Cannabis Board for the sale of the license holder’s cultivation license to the third-party asset management company. This solidifies NLV’s sale of cultivation-related assets, through its wholly owned subsidiary New Leaf Equipment Co., providing an infusion of capital into current operations. Read more here.
State law allows local governments to tack on as much as 3% sales tax to cannabis goods.
The Daily Hit is a recap of the top financial news stories for February 16, 2023.
Florida Medical Marijuana Patient Count Increases 71% in Two Years
According to state data, the number of registered medical marijuana patients in Florida increased by 71% in just the last two years, skyrocketing to 779,465 at the end of 2022. That’s up from 455,425 registered MMJ patients in 2020. Read more here.
New York Senator Introduces Bill to Replace THC Potency Tax
The New York Legislature will have a new issue to consider when lawmakers return from their current break on Feb. 27: changing the current cannabis tax structure from one based on THC potency and flower weight to a flat 20% tax. Read more here.
SEC: Fraudsters Should Pay $6.2 Million For Pump & Dump Scheme
The U.S. Securities and Exchange Commission hopes to collect $6.2 million from two men accused of partaking in “a sophisticated, multiyear, multinational” penny stock pump-and-dump scheme. Read more here.
New York City Fines Illegal Cannabis Shop $50k, Arrests Employee
A illicit cannabis store across the street from New York’s City Hall was fined $50,000 and had one of its workers arrested by local law enforcement this week for selling cannabis to a minor. The sheriff said his office would be checking on the location in the future, ostensibly to ensure the shop doesn’t reopen. Read more here.
Missouri Tightens Cannabis Gifting, Sampling Rules as Sales Rise
Missouri regulators have finally clarified the rules surrounding cannabis sampling and product giveaways. Only dispensary licensees and their employees have ” the authority to sell or distribute (give away) marijuana product to qualifying patients, primary caregivers, and consumers.” In addition, sampling or giveaways can only take place on the store sales floor. Read more here.
Auxly Cannabis Group
Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) closed its previously announced private placement for 96 million common shares of the company at a price of $0.035 per common share and 96 million common share purchase warrants, resulting in total gross proceeds of approximately $3.36 million, before deducting any applicable advisor or finder fees or offering expenses. The net proceeds will be used for working capital and general corporate purposes. Read more here.
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) became the first multistate operator in the cannabis industry to launch advertising campaigns on Twitter. This follows a policy change made by the global social media platform today that now allows cannabis companies to advertise. Read more here.
SAVO Cannabis announced the development of a genetics focused cannabis cultivation facility funded by Atlanta-based Brightsmith Capital Partners. The facility will focus on developing genetics and cultivation methods to grow flower with specifically designed terpene and cannabinoid profiles with a goal to provide top shelf product with targeted effects on the mind and body for life enhancing purposes. Read more here.
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