New Jersey Archives - Green Market Report

StaffDecember 14, 2022


The Daily Hit is a recap of cannabis business news for Dec. 14, 2022.


Dutchie Founders Sue the Company for Orchestrating a Coup

The founders of e-commerce cannabis company Dutchie are suing the current leaders and accusing them of orchestrating a coup. Dutchie was founded in 2017 by brothers Ross and Zachary Lipson and was originally called Courier Plus Inc. The two say they were improperly kicked out of the company by the current board and are insisting they are still directors and officers of the company. Read more here.

California Testing Lab Shutters Without Notice, Lays Off All Employees

A longstanding cannabis testing lab in northern California suddenly closed its doors this week with almost no notice to employees or clients, multiple sources confirmed to Green Market Report on Wednesday. Santa Rosa-based Sonoma Lab Works is now effectively shut down, said one former employee who requested anonymity. Read more here.

Report: Georgia Court of Appeals to Rule on Medical Marijuana Licensing Case

The Georgia Court of Appeals will weigh in on a lawsuit that alleges the state’s medical marijuana licensing process – which granted permits to two companies, Florida-based Trulieve and Georgia-based Botanical Sciences to manufacture and sell cannabis oils – was corrupt. Read more here.

Michigan’s November Cannabis Sales Jump 33% Over Last Year

Despite challenges in the cannabis industry, the state of Michigan reported that its November sales jumped by 33.2% over last year to $203.4 million. The Michigan Marijuana Regulatory Agency reports cannabis sales on a monthly basis and separates the data by medical and adult use. Read more here.

New Jersey Consumption Lounges Face Strict Rules

The New Jersey Cannabis Regulatory Commission (NJ-CRC) recently approved proposed rules and regulations for cannabis consumption lounges in the state, but if some things don’t change, it will be difficult for these businesses to be profitable. Read more here.


The Source

The Source, a marijuana shop in Northampton, Massachusetts, that opened only in March, will close Friday. It’s the first marijuana shop in the state to shut down since the first legal adult-use dispensaries opened in 2018. Many in the industry see this as a harbinger of a shakedown in a maturing industry, especially in Northampton, which has 12, soon to be 11, operational stores. Read more here.

New York hemp

As New York prepares for the imminent launch of legal adult-use marijuana sales, the governor has signed a bill aimed at expanding the state’s hemp market by promoting collaborative partnerships to identify more opportunities to utilize the crop and its derivatives for packaging, construction, and other purposes. Read more here.

StaffOctober 19, 2022


The Daily Hit is a recap of cannabis business news for Oct. 19, 2022.


Circle K Owner Doubles Down on Cannabis Bet in Florida

Florida medical marijuana patients might soon have the option to buy their medicine from a gas station next year. Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) said on Wednesday that it struck a deal with Alimentation Couche-Tard Inc. to start selling cannabis via Circle K convenience stores. Read more here.

Tilray Bullish on Alcohol as Cannabis Profits Shrink

As the cannabis sector hangs by threads, one company is riding the ethanol tide in search of higher margins. Tilray Brands Inc. (Nasdaq: TLRY) said its Breckenridge Distillery will partner with Anheuser-Busch-owned Breckenridge Brewery on a barrel-aged beer and beer-aged whiskey under the banner Buddy Pass. Tilray executives said that they remained bullish on the alcohol sector, as the business segment generated $20.7 million, rising 34% versus the prior year quarter. Read more here.

Leafly Cuts 21% of Staff in Quest to Cut Costs

Leafly (Nasdaq: LFLY), an online cannabis information resource and marketplace, announced Tuesday that it would cut 21% of its workforce as part of new cost-saving measures. Overall, annual cash savings are expected to be $16 million beginning in 2023, primarily due to reduced headcount. Read more here.

Layoffs Mark Next Stage of Cannabis Industry Cutbacks

As of January 2022, cannabis supported 428,000 full-time jobs in America. That equates to more than 107,000 jobs added in 2021, according to the 2022 Jobs Report from Leafly. While that marks the fifth year of industry job growth above 27%, 2022 might break that trend, as cannabis companies have been shifting gears and tightening budgets to boost bottom lines – including cutting staff. Read more here.

Local Modiv Fights Back Against Jersey City Denial

A legal battle is heating up in Jersey City, New Jersey after the applicant Local Modiv was denied a cannabis license. Both Local Modiv and Jersey City filed briefs filed last week in Hudson County Superior Court according to Law 360. In its brief Local Modiv claimed that the CCB (Cannabis Control Board) abused its authority by reviewing Plaintiff’s application for “proof of local support” based on factors that it claimed were completely inapplicable. Read more here.


Green Organic Dutchman/BZAM

The Green Organic Dutchman (OTC: TGODF) shares popped on the news that it bought privately owned Canadian-based BZAM Holdings (BZAM) in an all-stock deal. BZAM shareholders will end up holding roughly 49.5% of the combined company. The deal is expected to close on Nov. 8, 2022. Read more here.

NewAge Inc. (formerly known as New Age Beverages Corp.)

The Securities and Exchange Commission filed charges against Brent David Willis, the former chief executive officer of NewAge Inc. (formerly known as New Age Beverages Corp.), alleging that Willis engaged in a multiyear fraud by disseminating numerous false and misleading press releases and making false public statements concerning NewAge’s business dealings. Read more here.

AmeriCann Inc.

AmeriCann Inc., a cannabis company that develops state-of-the-art cultivation, product manufacturing, and distribution facilities, reported a significant increase in year-over-year revenue, climbing more than 44% for the fiscal year ending Sept. 30, 2022, compared with the prior year. Read more here.

Debra BorchardtOctober 19, 2022


A legal battle is heating up in Jersey City, New Jersey after the applicant Local Modiv was denied a cannabis license. Both Local Modiv and Jersey City filed briefs filed last week in Hudson County Superior Court according to Law 360.

Local Modiv had applied for an adult-use license but was denied. In its brief Local Modiv claimed that the CCB (Cannabis Control Board)  abused its authority by reviewing Plaintiff’s application for “proof of local support” based on factors that it claimed were completely inapplicable. Jersey City is pushing back saying it isn’t a rubber stamp authority and that it’s in the CCB’s authority to review each application.

The Motion from Local Modiv stated, “Not only did the CCB review Plaintiff’s application for “proof of local support” based on inapplicable factors, it also reached unsupported conclusions with respect to such factors. For example, the CCB concluded that Plaintiff did not present a sufficient “workforce development and job creation plan” when, in fact, Plaintiff submitted a comprehensive 14-page plan that more than meets the requirements of this factor. Further, the CCB incorrectly concluded that Plaintiff misled the CCB to believe that its application was supported by the City Council President (when Plaintiff’s application and testimony is devoid of any such statements). The CCB also erred when it concluded that Plaintiff did not demonstrate sufficient community outreach, while ignoring the entirety of Plaintiff’s comprehensive community outreach objectives and longstanding history of community service within Jersey City. In other words, the CCB blatantly applied the wrong factors in evaluating Plaintiff’s application and then reached conclusions that have no support in the record.”

Local Modiv Problems

Site Location

Jersey City noted in its brief that the CCB found that LocalModic lacked “site control” over the proposed location of its business especially since it could not produce a lease with the
building owner and there were no records establishing the building owner actually existed. The CCB also claimed that there were too many applicants seeking Class 5 retail locations in the vicinity of Local Modiv, including within 1,000 feet.

Local Modiv though stated that the CCB expressly acknowledged on the record, the number of other applicants in the area is not a factor that the CCB is tasked with considering.

In addition to the proximity of other applicants, the proposed lease for the property submitted to the CCB was signed by Issac Sebbag on behalf of his company Golden Sky Equities, LLC, as landlord on March 9, 2022. Unfortunately, the CCB Board said the New Jersey Division of Revenue & Enterprise Services’ Business Records Service contains no such New Jersey business entity.

Local Support

When it came to having local support for the dispensary, the CCB said in its brief that Local Modiv misled the board to believe it had support from a member of the City Council, and failed to demonstrate a relationship with community entities and a Special Improvement District. The CCB also said they Local Modiv failed to produce correspondence from the Special Improvement District (SID).

Digging a little further into the support from the SID, The Jersey City Motion said that Local Modiv had claimed to have the support, but then couldn’t produce a letter to back up that claim. Plus, no member of the SID showed up at a June 13 hearing, and when asked why no member was there to support the company, Local Modiv’s CEO suggested that the SID was prioritizing people that made donations to the organization.

The CCB gave Local Modiv another two weeks to get the SID support and scheduled another hearing for June 27. Again Local Modiv was unable to produce support at the hearing but instead noted that the SID has supported an attempt for a medical cannabis license in 2019. However, that business was never established. The CCB has also asked that members of the community speak up in favor of the application aside from the SID. Again, there were “no neighborhood groups, businesses, or residents at the hearing, and no available written support in Plaintiff’s application to confirm whether prior outreach or meetings with local businesses had taken place.”

According to the Jersey City Motion, the CCB was “dismayed” that Local Modiv again suggested the SID was getting paid off for support but had no proof to support the claim.

Local Modiv did claim to have support from the Liberty Humane Society and cited issues with pets consuming cannabis and that it would address this problem – thus meeting the requirement of improving the community. “However, Board member Stacey Flanagan, who is also the City’s Director of the Department of Health and Human Services, noted
that she ‘manage[s] animal control and I’ve never heard of such phone calls about pet accidents and cannabis consumption.'”

Local Modiv also noted in its Motion that “A relationship with the SID is not a requirement under the Ordinance and that it had not required any other applicant to provide proof of a relationship with the SID.” Local Modiv also said that its interpretation of local support means that the applicant is in a municipality whose rules allow a retail cannabis operation – not that it gets the neighbor’s support.

Hiring Practices

While the CCB liked that Local Modiv was a female-owned company and wanted to hire underserved and minority employees it was also concerned that relationships with several organizations were either outdated or unsupported by documents or testimony that could provide the CCB with confidence that Local Modiv would follow through meaningfully.

Local Modiv said that all it is required to do is present a plan according to the CCB’s ordinance. Local Modiv said its application contained a comprehensive 14-page “Workforce Development and Job Creation Plan.” Local Modiv went on to claim that it had partnered with “#HIREBLACK,” a network of 15,000 people and counting whose goal is to help 10,000 Black women get trained, hired, and promoted in corporate positions. The company also said it planned to host job fairs throughout Jersey City and northern New Jersey to attract “local diverse talents from socio-economically disadvantaged communities, individuals with prior entanglements in the criminal justice or juvenile justice system, and people with disabilities.”

Community Support

Local Modiv also noted that its CEO Chelsea Duffy had done the following community work as evidence of its community involvement:

Volunteer work with representatives from the United Nations in forming the Women’s History Committee of Jersey City (which collaborates with local governments to advance women’s rights and positions in the workforce through the implementation of sustainable goals), the U.S. Women’s Chamber of Commerce, The New Jersey Association of Women Business Owners (the longest-standing statewide women business owners’ organization in New Jersey), Women Grow (which serves as a catalyst for women to influence and succeed in the cannabis industry), and CannaConvos (a women-focused cannabis education, outreach, and advocacy group started by Ms. Duffy along with another co-founder of Plaintiff, Nicole Colon).  Partnering with CannaGather NJ for multiple coat drives (in which Plaintiff donated over 95 coats to less fortunate Jersey City
residents), participating in Jersey City Tech Meetups, participating in meetings of the New Jersey Counseling Association, hosting an open event for Mothers for Marijuana, and sponsoring and donating to the 5th and 6th Annual “Justice of All” Fundraiser (which supports The Waterfront Project, a nonprofit organization that provides pro bono legal representation and information to economically disadvantaged residents of Hudson County

In Closing

Sales of cannabis in the state have been robust and receiving a license has significant financial implications. It seems the courts will now have to decide who is correct in this situation.



StaffAugust 23, 2022


The Daily Hit is a recap of cannabis business news for August 23, 2022.


New Jersey Sales Off to a Hot Start

Customer turnout, cross-border demand drive consumption up in the first three months of legal adult-use sales. A tidal wave of demand for pot in New Jersey is driving promising numbers for operators in the new adult-use cannabis market, according to a report from cannabis data firm BDSA. Read more here.

Ascend Dumps Its MedMen New York Deal

Ascend made pretty negative comments about the New York market in its decision to back out of buying MedMen’s assets. After spending time and money fighting MedMen (OTC: MMNFF) to close on its original agreement to sell its New York assets to Ascend Wellness (OTC: AAWH), the company apparently had buyer remorse. Read more here.

Still No Revenue For Nasdaq-Listed Bright Green

Bright Green posted mixed updates as it moves toward commercialization since moving into the Nasdaq Stock Market as a direct listing. Bright Green Corporation (Nasdaq: BGXX) posted mixed updates as it tries to inch toward commercialization since moving into the Nasdaq Stock Market as a direct listing. The company reported financial results for the quarter ending June 30, 2022. Read more here.

DMT Company GH Research Gives Business Update

GH Research PLC (Nasdaq: GHRS) reported financial results for the second quarter ended June 30, 2022 and gave updates on its business. The company has no revenue at this time and is focused on developing its DMT drugs for mental health issues. The company also said it does not expect to have revenue for several years. GH Research has $265.4 million in cash as of June 30, 2022, compared to $276.8 million as of December 31, 2021. The company said it believes that has enough capital to fund its operating expenses and capital expenditure requirements into 2025. Read more here.

Psychedelic Companies Turn Focus to Resilience

To talk about company resilience in the psychedelics industry is a bit premature. After all, most of the more prominent companies didn’t open their doors until 2016 or later. But it’s the perfect time to build a foundation for resilience while they look to a future of opportunity. Established life science businesses can help show the way. Read more here.


Tilray Brands, Inc.

Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), a global cannabis-lifestyle and consumer packaged goods company, today announced that its medical cannabis division, Tilray Medical, has received approval and verification from The Natural Health Science Foundation of its flagship product, Tilray Purified Oral Solution CBD100, to be used in clinical trials in Australia and New Zealand. Read more here.

Chalice Brands Ltd.

Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF), a consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, announced today that it has issued the following open letter to shareholders from the Chalice Brands leadership team. Read more here.

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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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