New York Archives - Green Market Report

StaffAugust 25, 2022
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6min190

The Daily Hit is a recap of cannabis business news for August 25, 2022.

ON THE SITE

Aurora Buys $45 Million Majority Stake in Bevo Farms

Bevo will take over the shuttered Aurora Sky facility as part of the completed deal. Aurora Cannabis (Nasdaq: ACB, TSX: ACB) acquired a majority stake in grow giant Bevo Farms in a bid to consolidate and offload one of its largest greenhouses. Read more here.

New York Opens Adult-Use Retail Application

OCM said that it would distribute up to 150 conditional adult-use retail dispensary permits. New York’s Office of Cannabis Management is now accepting applications for those directly affected by the war on drugs in a first-round distribution of state adult-use retail licenses. Read more here.

SLANG Forms M&A Division as Revenues Rise

SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) revenues rose in the second quarter as the company looks toward snapping up new opportunities through a new M&A commission. The cannabis consumer packaged goods company released financial results for the second quarter ending June 30, 2022. Read more here.

Feds Agree to Create Task Force to Help Psychedelics Development

The task force would address issues associated with the approval and rollout of medical psychedelics to treat mental health disorders. Earlier this month, the U.S. government took a significant step toward legitimizing psychedelics as a therapeutic treatment by announcing the formation of an interagency task force around the issue. Read more here.

IN OTHER NEWS

POSaBIT Systems Corporation

POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF), the leading provider of payments infrastructure in the cannabis industry, today announced its financial results for the three months ended June 30, 2022. Read more here. Read more here.

Blueberries Medical Corp.

Blueberries Medical Corp. (CSE: BBM) (OTC: BBRRF) (FRA: 1OA), the Canadian parent of Blueberries S.A.S., a Latin American licensed cultivator and producer of medicinal cannabis and medicinal-grade cannabis extracts, reported its financial results for the quarter ended on June 30, 2022. Read more here.

Cannabis Global, Inc.

Cannabis Global, Inc. (OTC: CBGL), a licensed Los Angeles-based manufacturer and distributor in the cannabis sector, today made comments on expected corporate growth and unique products launching into the California Cannabis marketplace. For the fiscal year ending on August 31, 2022, the company expects to report strong growth, driven by new product introductions and multiple new distribution partnerships. Read more here.

Far & Dotter

Far & Dotter, the inclusive cannabis dispensary franchise model from Curio Wellness, has announced its intentions to support entrepreneurs applying to enter New York’s complex cannabis industry. Read more here.

Abaca, Pacific Valley Bank

Abaca, a financial platform for cannabis operators, and Pacific Valley Bank (OTC Pink: PVBK), are partnering to expand access to cannabis banking in the California market. Read more here.

Cannabix Technologies Inc.

Cannabix Technologies Inc. (CSE: BLO) (OTC PINK: BLOZF), developer of marijuana breathalyzer devices for law enforcement and the workplace, reports it continues to successfully test a supplemental version of its FAIMS technology for detection of ∆9-tetrahydrocannabinol (THC) and related analytes in human breath in new comprehensive multi-analysis study of subjects under the influence of marijuana in the southern United States. Read more here.

Ascend, Teamsters Local 25

Workers at Ascend in Boston voted overwhelming this week to join Teamsters Local 25, becoming the first cannabis dispensary in New England to organize with the union. Read more here.

Optimi Health Corp.

Optimi Health Corp. (CSE: OPTI) (OTCQX: OPTHF) (FRA: 8BN), a Canadian-based company licensed by Health Canada to produce natural, scalable, and accessible psychedelic and functional mushrooms, announced that it has finalized three new Canadian retail and e-commerce distribution agreements for its Optimi Life nutraceutical mushroom products. Read more here.


Adam JacksonAugust 11, 2022
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6min80

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.”


Debra BorchardtJuly 15, 2022
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5min201

The New York Cannabis Control Board (CCB) approved rules on Thursday to establish retail applications for the sale of adult-use cannabis. The state could open up these applications as soon as August, which could potentially set the stage for sales happening before the end of the year. This has been the goal of the CCB, but it seemed like it miss that target.

“Today’s vote confirms New York’s commitment to prioritizing equity, and keeps us on track to have the first sales before the end of 2022,” Tremaine Wright, chair of the Cannabis Control Board, said in a statement.

The first round of licenses, however, will be doled out to those who were disproportionately impacted by the drug war. According to the report, license applicants must have a cannabis conviction or a close family member with a conviction, but they also have to have some experience running a profitable business. These initial licensees are part of the Office of Cannabis Management’s “Seeding Opportunity Initiative”. The state created the social equity program using $50 million in public funds and $150 million in private funds to support social equity applicants seeking to build their businesses. The fund was approved by the state Legislature as part of New York’s 2023 budget and will be administered in partnership with the Dormitory Authority of the State, which will help applicants with real estate searches.

Axel Bernabe, chief of staff at the Office of Cannabis Management (OCM) said that the recreational sales regulations that went before the board are “really the cornerstone of [OCM’s] Seeding Opportunity Initiative, and it’s truly exciting to see that initiative finally take shape.”

In addition to the news on applications, the CCB also approved another 20 conditional cultivation licenses for New York farmers to begin growing cannabis for adult-use sales, bringing the total number of conditionally licensed farms to 223.

“Thanks to the tremendous effort to advance the Seeding Opportunity Imitative, we’re succeeding in a way that has never been seen before,” Wright added. “New York is launching its legal, regulated industry with business savvy entrepreneurs who have been directly harmed by the prohibition of cannabis.”

The move to advance the licenses towards social equity applicants hasn’t been popular with the established medical cannabis operators. They have been losing millions of dollars for years in anticipation of being first in line for the retail licenses. Had these operators been given the green light for adult-use sales, the program would have been operating much sooner. There has also been criticism that the licenses will be given to groups that won’t have the experience to handle the complex challenges of running a compliant cannabis operation.

Also, the social equity program is not a grant program, but instead a loan program. This will put added pressure on these operators to be able to pay these loans back. In addition to the money it will take to create a dispensary, the operators will also have the challenge of finding an acceptable location. The OCM recently created a group to assist these applicants in finding and securing an appropriate space once it realized these applicants were already finding the first step to be a difficult one.

Many New York medical operators are torn with the decision to put social equity applicants first. Morally, they agree with the move, but from a financial perspective are angry at having to wait even longer to recoup their investments in the New York market. They also know the difficulties and complexities of running these businesses and fear these unseasoned operators will struggle. They also worry that consumers will be subjected to long lines, poor product selections, and high taxes that will further drive the consumers back to the illicit markets. The illicit market is thriving in the state in the absence of any laws around the program.

 


Andrew WardJuly 13, 2022
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New York’s adult-use cannabis market expects to be immense once it reaches maturity. Various reports suggest the marketplace could earn between $1 billion and $3 billion annually in the coming years.

Success will be determined, in large part, by the state’s ability to address the unlicensed market, sometimes referred to as the legacy market. States like California and Colorado have generated high sales but continue to struggle with unlicensed grows and dispensaries. 

New York’s Cannabis Control Board (CCB) and Office of Cannabis Management (OCM) have released legislation incrementally. In April, the state granted over 200 conditional marijuana cultivator licenses to existing hemp farmers. On June 1, the CCB approved its first set of packaging, labeling and advertising regulations. Plans have also been made to issue approximately the first 100 licenses to people most affected by the drug war. 

No further clarity has been given regarding license availability. In the meantime, a surge of unlicensed dispensaries has begun to open. Stores include brick and mortar, pop-up and mobile sales sites using the state’s current grey area gifting laws. Numerous operators assume early launching is the natural step to gaining an adult use license. Others caution that such a measure may eventually bite aspiring legal operators. 

How Many Businesses Are Selling Weed In New York City Right Now?

Unlicensed stores and sellers are popping up across the state. No more so than New York City, which consumed 77.44 metric tons per year of pot per year, according to a 2018 study. Sources offered various broad estimates of how many operate in New York City today, with most answers ranging between 100 and over 1000. 

The city has its fair share of licensed locations, with names like Curaleaf (OTC: CURLF), Columbia Care, MedMen (OTC: MMNFF), RISE and Etain, all having a presence across the boroughs. A search on Google reveals scores of unlicensed shops. A deeper dive via community cannabis contacts or a stroll in certain parts of the city will likely show others, including standalone sellers in the park and bodegas. 

Most sources noted that tracking how many sellers operate in New York City today is difficult.

“If you include every bodega and smoke shop selling unlicensed and untested cannabis, it’s easily in the hundreds, if not the thousands,” said Mike Zaytsev, academic director for LIM College’s cannabis degree program

Gregory M. Tannor, executive managing director and principal at real estate firm Lee & Associates NYC, said that when considering illegal shops and bodegas, “Every day there are new smoke shops opening throughout the city.” 

If using recent OCM reporting, there were at least 52 illegal storefronts across the state as of early 2022. In July, five months after announcing it had sent out cease and desist letters, the OCM announced it issued 52 warnings to various unlicensed operators that you can read here. However, some outlets report that non-cannabis operators were named, calling into question the list’s accuracy.

Why Open Now? 

 

Some unlicensed operators believe that if they open now, they are likely to win a retail license once the state begins issuing permits. Some offered caution to those individuals. 

Kassia Graham, co-founder and social media director for Cannaclusive, said that the state is taking note even if it seems lax on enforcement. She feels that entering the market now only makes sense if the operator has no interest in becoming licensed. Graham expects the illicit market to continue in New York past legalization like in other states. 

“We’ll continue to see a thriving legacy market due to the costs, compliance, and legal issues related to making the jump to the legal realm of the industry,” she opined. 

Andrew Livingston, the director of economics and research at Vicente Sederberg LLP, offered a similar opinion. 

 “The risk of being disqualified for operating an illegal enterprise is not a significant cost to those who are not interested or do not have the ability to open a licensed cannabis business,” He said. 

 Livingston added that the allure of quicker revenue in the illicit market likely further fuels the interest of some illegal operators. 

 Potential licensing bans might not faze existing grey operators already doing well for themselves. LIM’s Zaytsev feels it’s safe to assume that operators will continue on if they already have success. 

“Why would any of them stop,” he asked, adding, “They’re doing quite well, from what I’ve heard.”


StaffJuly 12, 2022
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The Daily Hit is a recap of the top cannabis business stories for July 12, 2022.

ON THE SITE

MariMed Begins Trading On The CSE

MariMed, Inc. (CSE: MRMD), (OTCQX: MRMD) began trading its common shares on the Canadian Securities Exchange (CSE) today, July 12, under the ticker symbol MRMD. MariMed’s shares will continue to trade on the OTCQX under the ticker symbol MRMD. MariMed believes trading on the CSE will increase liquidity for shareholders and provide easier access to Canadian retail and institutional investors, in addition to U.S. investors on the OTCQX market. Read more here.

New York Has Potential To Be Number One, If It Can Beat Illicit Dealers

New York is often considered a likely major player in the US cannabis market. While reasonable, the state’s immense unlicensed consumption habits have some wondering if it will face problems as California has. If so, what might happen to New York’s licensed operators, including social equity license holders, a priority component of the state’s Marijuana Regulation and Taxation Act. Read more here.

Netflix Launches Psychedelic Pollan Series

Netflix (NASDAQ: NFLX) has launched four episodes of “How to Change Your Mind” based on the Michael Pollan book of the same name. The four-part docu-series was executive produced by Alex Gibney and directed by Alison Ellwood. The series is based on The New York Times best-selling book and it dives into the science of psychedelics while touching on consciousness, dying, addiction, depression, and transcendence. Each episode targets a different mind-altering substance: LSD, psilocybin, MDMA, and mescaline. Read more here.

The Dangers of Popularizing Psychedelics

So much good news from trusted sources about psychedelics today has really made the topic part of the zeitgeist of a world looking for help, as we all struggle to deal with many mental health and wellness issues within the context of a worldwide pandemic showing new signs of continuing. Read more here.

IN OTHER NEWS

Cryomass Technologies Inc.

OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced Cryomass Technologies Inc. (OTCQX: CRYM), a company preparing to manufacture and operate field-mobile equipment for the handling of harvested cannabis, hemp and other high-value plant material, has qualified to trade on the OTCQX® Best Market. Cryomass Technologies Inc. upgraded to OTCQX from the OTCQB® Venture Market. Read more here.

Jushi Holdings Inc.

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, announced that Ed Kremer has resigned from his position as Chief Financial Officer to accept a role at a competing large cannabis multi-state operator. Mr. Kremer’s resignation will take effect today, July 12, 2022.  Mr. Kremer is party to an employment agreement with Jushi, which, among other things, prohibits him from working for a competitor for a 12-month period. While Jushi is appreciative of Mr. Kremer’s hard work to support the timely filing of audited financials, the Company takes such post-employment obligations seriously and will take steps to enforce its contractual rights. Read more here.

AmeriCann Inc.

AmeriCann Inc. (OTCQB:ACAN), a cannabis company that develops cultivation, product manufacturing and distribution facilities, today provided financial and operational updates for its Massachusetts cannabis cultivation, product manufacturing and distribution campus. The company achieved a significant increase in year-over-year quarterly revenue, increasing over 36% for the quarter ended June 2022 relative to the quarter ended June 2021, an increase of $213,902. Read more here.

Medical Marijuana, Inc., Kannaway® Japan

Medical Marijuana, Inc. (OTC: MJNA), a publicly traded cannabis company in the United States that has launched cannabis-derived nutraceutical products, brands, and supply chain, announced today that in June, its subsidiary Kannaway® has achieved its largest revenue month in the company’s history for its Japan division. Read more here.

Akanda Corp., Tetra Bio-Pharma

Akanda Corp. (NASDAQ: AKAN) and Tetra Bio-Pharma (TSX: TBP) (OTCQB: TBPMF) (FRA: JAM1), today jointly announced that Akanda will supply Tetra with pharmaceutical grade cannabis flower in a microdose cap form, for use in a Storz & Bickel Mighty Medic Vaporizer for global commercialization of Tetra’s QIXLEEFTM and related products. In addition, Akanda will act as a contract development and manufacturing organization (CDMO) for Tetra’s clinical drug and commercial supply programs. With this project, Akanda becomes a CDMO in addition to being an EU GMP cannabis manufacturer, marking Akanda’s first entry into cannabinoid drug development. Read more here.

China Infrastructure Construction Corp., Cannabis Bioscience International Holdings, Inc.

China Infrastructure Construction Corp., a company traded on the OTC Markets Pink tier under the symbol CHNC, announces that, in addition to completing its public audit on March 21, 2022, its independent registered public accounting firm, PWR CPA LLP, has completed its review of the company’s financial statements for the first three quarters of the fiscal year that ended May 31, 2022. This review is a significant step in the prompt completion of audited financial statements for the fiscal year then ended, as well as in preparing for the change of the company’s corporate name to Cannabis Bioscience International Holdings, Inc., which it plans to accomplish as soon as it is able to comply with regulatory requirements. Read more here.

Rodedawg International Industries, Inc.

Rodedawg International Industries, Inc. (OTC Pink: RWGI) announced the acquisition of Tree Moguls™, a premium cannabis lifestyle brand based in Southern California. Christopher Swartz, CEO, states, “This acquisition is an immediate revenue producing opportunity and allows Rodedawg to enter into the $6 billion dollar California cannabis market through licensing and distribution opportunities. As part of the acquisition, Rodedawg also acquires a deep technology stack which includes Augmented Reality (AR) and Virtual Reality (VR) embedded branding for the Tree Moguls™ brand.” Read more here.

Zoned Properties®, Inc.

Zoned Properties®, Inc. (OTCQB: ZDPY), a real estate development firm for emerging and highly regulated industries including legalized cannabis, today announced the company has secured an initial debt facility of up to $4.5 million. Read more here.

Pacific Stone

Pacific Stone, a seed-to-sale company producing 6.5 percent of the licensed California market’s cannabis flower, announces its ongoing partnership with RIP Medical Debt and participating California retailers with the goal of alleviating $3 million in medical debt for families across the state of California. Read more here.


Andrew WardJuly 12, 2022
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New York is often considered a likely major player in the US cannabis market. 

While reasonable, the state’s immense unlicensed consumption habits have some wondering if it will face problems as California has. If so, what might happen to New York’s licensed operators, including social equity license holders, a priority component of the state’s Marijuana Regulation and Taxation Act

With New York not fully rolling out its regulations, sources across the sector feel it’s too early to predict how the state will contend with the unlicensed market. Most appear optimistic that the state will become a significant player but caution that several factors could alter the outcome. 

Illicit Market Value 

As New York waits for final regulations, the unlicensed market continues to perform, likely earning one to several billion in untaxed sales yearly. Juliana Whitney, CEO, and founder of Cann Strategy estimates illicit market sales to be between $1.5 and $2 billion annually. 

“New York has a strong legacy market, and it will remain that way, even with the existence of licensed dispensaries,” she predicts.

Andrew Livingston, director of economics and research at Vicente Sederberg LLP, estimated the illegal market’s value at around $1.8 billion. Livingston believes the licensed market would benefit by focusing on tourist consumers while many residents remain illicit market buyers. He also recommends that the state avoid overregulating and focus on market accessibility and bringing legacy buyers to the licensed market. 

“It is all about enticing consumers, many of which who are accustomed to bike messengers meeting them at their apartment or outside their building,” he said.

 

Some see the illicit market earning much more per year. There are some that estimate New York’s illegal sales totaled $5.1 billion in 2022. However, this figure can’t be verified. Curaleaf (OTC: CURLF) CEO Matt Darin said, “That’s a significant amount of money that could be taxed and go towards community reinvestment and public education.”

Cost, Access, and Supply All Critical

A strong legacy market and unfinished regulations are just two of the substantial remaining hurdles that cloud market outlooks. Early-stage access was critical for numerous sources, indicating that the market must avoid shortages during the launch period. In previous years, countries like Canada and Germany have faced product shortages. Domestically, Nevada, Washington state and Illinois are all significant markets to experience such an issue. 

Vicente Sederberg’s Livingston said New York would have to compete with illicit access points, including park tables and food trucks. “The city will need to find a way to make cannabis more appealing to access via regulated storefronts or delivery services than it currently is,” he said. 

Curaleaf’s Darin said getting to market is critical. He feels a sooner-than-later market launch would help compete with the illicit market, maximize job growth, generate revenue and seed social equity programs. He feels that the state should include craft and small farmers and existing medical operators like Curaleaf to combat supply concerns.

“Existing operators in the state have the infrastructure and resources to help launch adult-use quickly and ensure that there is ample supply of product to serve both the adult-use and medical use markets,” he said.

Jeremy Unruh, senior vice president of public and regulatory affairs for PharmaCann of New York, offered a similar opinion. He also feels that allowing existing medical players like, PharmaCann, would bring the market online sooner. “The question is whether the [CCB] will capture the lion’s share of that megamarket, or allow illicit operators to continue to dominate and proliferate in New York State,” he said.

Unruh claimed his company’s analysis found that using existing infrastructure could result in $1 billion in additional tax revenue and 10,000 more full-time jobs over the first five years. 

Even if the market launches soon, results may take time to reach their full potential. “Regardless of preparation, it usually takes new markets a bit of time to stabilize the supply,” said Cann Strategy’s Whitney. She also warned that the legal market would have initial training and pricing hurdles for customers and dispensaries. 

“Not many New York job candidates will have preexisting experience working in licensed cannabis business and therefore will all require adequate and accurate training,” she said. 

Whitney feels employees will need to work on providing confident customer service while working within a strict regulatory space, unlike most other retail sectors. 

She said that sticker shock will always impact legacy market buyers when first buying licensed products. However, Whitney expects “many will move away from the legacy market just because the new purchasing experience fits more into their usual lifestyle,” which includes a demand for convenience and lab-tested products. 


StaffJuly 11, 2022
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8min220

The Daily Hit is a recap of the top cannabis business stories for July 11, 2022.

ON THE SITE

THC Designs Sued By Ex-Finance Director For Alleged Request To Doctor Financials

William McKenna, the former Finance Director for Los Angeles-based cannabis company THC Designs filed a lawsuit against the company on July 6, 2022. McKenna claims he was fired for refusing to defraud investors and tax authorities went the company’s owner Ryan Jennemann asked him to doctor the financials. He claims he was asked to reduce the liabilities so that the company could borrow more money. McKenna also thinks that the company was growing and selling psilocybin mushrooms for cash and not recording those sales. Read more here.

MediPharm Sells Australia Asset to OneLife Botanicals

MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) is selling its MediPharm Labs Australia Pty Ltd to OneLife Botanicals PTY in a deal valued at $6.9M AUD ($6.2M CAD). The transaction is expected to close within 90 days. The deal includes the assets of MPLA, specialized licensing, operational knowledge, and Australian and New Zealand customers currently served from that facility. All international contracts outside of Australia and New Zealand will remain with MediPharm Labs and be serviced from the Barrie GMP facility. Read more here.

Canadians Prefer To Pay Higher Prices For Flower

It seems Canadian cannabis consumers prefer to pay higher prices for flower. A new report from Cantor Fitzgerald’s analyst Pablo Zuanic found that most of the Canadian Licensed Producers (LP’s) increased market share with higher flower prices. The only exception to the rule was Organigram (NASDAQ: OGI), which saw its market jump dramatically after dropping prices almost by half. Read more here.

Neptune Wellness Revenue Drops As Company Leaves Cannabis

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced its financial results for the fourth quarter and full-year ending March 31, 2022. The fiscal fourth-quarter revenue totaled $11.5 million, an increase of 147% versus $4.7 million for the same period the year prior. However, it was a big drop from the company’s fiscal third-quarter revenues of $18 million.  Neptune also trimmed its fourth-quarter net loss to $36.2 million versus a net loss of $43.5 million for the same quarter in 2021. Read more here.

New York Sends More Cease & Desist Letters

As the New York cannabis program moves at a snail’s pace to get the adult-use cannabis program established, numerous illicit operations have sprung up. With no real laws in place, technically most of these operators feel they can’t be charged with breaking the law. The law doesn’t exist. Plus, with cannabis mostly being decriminalized in the state, possession has also lost its threat. That has created a conflict between the legal medical cannabis operators who have spent millions creating companies that do comply with the law and the illicit operators. Plus, many are now investing even more money to try to become legal operators but watching the current illicit operators operate with impunity. Read more here.

New Lake Acquires More Properties

Cannabis REIT NewLake Capital Partners, Inc. (OTCQX: NLCP) reported $50 million of investments across three properties, marking the full commitment of capital raised during the company’s initial public offering (IPO). NewLake acquired two properties from a leading publicly-traded U.S. multi-state cannabis operator (MSO) and amended its existing lease with another leading publicly-traded U.S. MSO to fund an already completed expansion. As of June 30, 2022, NewLake has approximately $28.7 million of unfunded commitments. Read more here.

Psychedelics Market Grows Despite Many Unknowns

The psychedelics renaissance is in an expanded growth mode, not just in the U.S. and Canada, but in other countries as well. But everywhere in the world, it’s a bit of a Dr. Jekyll/Mr. Hyde scenario: startup businesses ostensibly building a serious moneymaking enterprise in a nascent industry, while conducting experiments in labs with novel brain-chemistry substances that could change the world of mental health wellness for good… if all goes as planned. Read more here.

IN OTHER NEWS

TILT Holdings Inc., Shinnecock Indian Nation

TILT Holdings Inc. (NEO: TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development, and the Shinnecock Indian Nation, a federally recognized Native American tribe living on their traditional lands on the eastern end of Long Island, N.Y., began construction today on Little Beach Harvest, a 5,000 square-foot cannabis dispensary located on Shinnecock tribal territory in Southampton, N.Y. Read more here.

Flora Growth Corp.

Flora Growth Corp. (NASDAQ: FLGC), an all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands, announced today the appointment of Elshad Garayev to serve as Flora’s Chief Financial Officer, effective on the business day following the date on which the company files its mid-year financial results with the Securities and Exchange Commission. Until such time, Mr. Garayev will serve as Vice President of Finance and will work closely with Lee Leiderman, Flora’s current CFO, to ensure a smooth transition. Mr. Leiderman will then move into an advisory role with Flora in order to focus on his health and his family. Read more here.

Clever Leaves Holdings Inc.

Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW), a multinational operator and licensed producer of pharmaceutical-grade cannabinoids, announced today the continued expansion of the company’s partnership with European medical cannabis leader Cantourage GmbH to include supply of Clever Leaves’ second pharmaceutical-grade cannabis product, cultivated in the company’s Portugal Facilities, to the German medicinal cannabis market. Read more here.

Cannabotech

Cannabotech (CNTC.TA), an Israeli bio-med company which is engaged in the development of a botanical drug based on Cyathus striatus fungal extract and cannabinoids extracts from the cannabis plant, reports that further to an experiment in a cell model in April 2022, which proved that the fungus-cannabinoids combination kills pancreatic cancer cells with high efficacy of up to 100%. Read more here.


StaffJuly 8, 2022
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As the New York cannabis program moves at a snail’s pace to get the adult-use cannabis program established, numerous illicit operations have sprung up. With no real laws in place, technically most of these operators feel they can’t be charged with breaking the law. The law doesn’t exist. Plus, with cannabis mostly being decriminalized in the state, possession has also lost its threat. That has created a conflict between the legal medical cannabis operators who have spent millions creating companies that do comply with the law and the illicit operators. Plus, many are now investing even more money to try to become legal operators but watching the current illicit operators operate with impunity.

The Cannabis Control Board is trying to address the situation by sending out “Cease & Desist” letters. This is the second round of letters to go out. The letter says,

The MRTA (Marijuana Regulation and Taxation Act) clearly states that any unlicensed sale of cannabis is illegal. Legal, licensed and taxed sales can begin only after the state approves regulations governing sales and licenses the businesses making them.

The companies receiving the letters in this second round were:

  • Heirloom Hemp & CBD – Cooperstown NY
  • Heirloom Hemp & CBD – Bainbridge NY and Otego NY
  • Kushfly Marijuana Dispensary – New York City
  • LakeWatch Inn Catering – Ithaca NY
  • Mile High Accessories – Waverly NY
  • Mile High Accessories – Binghamton NY
  • MJ Dispensary – Henrietta NY
  • Moonhaven Organics – Brockport NY
  • Noise NYC – Brooklyn NY
  • Omegaleaf CBD – Liverpool NY and Brooklyn NY
  • Paint Puff N’Peace – New York City, Albany, and The Bronx
  • Plant It Express – Tonawanda NY and Albany
  • Premier Vapors 3 – Malone, Plattsburgh, and Brooklyn NY
  • Royal Wellness – Flushing NY
  • Smokers Emporium – Geneseo NY
  • The Ground Up – Waverly NY
  • The Hot Spot -Olean NY
  • Triclomes – Rochester NY
  • Weed World – New York City
  • Carol Messina (MJ Dispensary) – Rush NY
  • I’m Stuck – Newark NY
  • Good Vibes Customs – Ithaca NY
  • Custom Osmotics – Honeoye Falls NY
  • Tammy Morshed (CannaGlam 2022) – Grand Island NY
  • Grateful Smoke & Gift Shop – Waverly NY

The biggest threat in the letters is the CCB’s comment that operating in this grey zone, will hurt these operators who want to apply for legit licenses. It also threatens the landlords by suggesting that allowing these businesses to operate could jeopardize future approvals for legally licensed operators.


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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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