New York Archives

StaffJuly 11, 2023

This story was republished with permission from Crain’s New York and written by Mario Marroquin.

The store’s operators, according to the office of Gov. Kathy Hochul and Statis CEO Christian Chavez, were supported by the New York Social Equity Cannabis Investment Fund.

Video StaffJune 26, 2023

On the Revel hosted a New York cannabis community event on June 22 bringing together licensed operators. New York cannabis producers were able to display their businesses as potential buyers shopped around for dispensary products. Roughly 800 people attended the event held in Hudson, New York. Despite the trouble in the New York market, the mood was celebratory and optimistic.

StaffJune 22, 2023

The Daily Hit is a recap of the top financial news stories for June 22, 2023.

On the Site

Canopy Growth Sees More Than $3 Billion in Losses

Canada-based cannabis industry leader Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) has reported steep rising losses worth more than C$3 billion. Canopy posted revenue of C$87.54 million for the fourth quarter ending March 31, 2023 versus last year’s $101 million – a decline of 14%. Still, the revenue figure beat Yahoo Finance’s analyst average of $73.1 million for the year. Read more here.

SEC Fines Marcum $10 Million for Improper SPAC Audits

The Securities and Exchange Commission censured accounting firm Marcum LLP for engaging in unethical and improper professional conduct related to Special Purpose Acquisition Corporations (SPAC). The SEC also noted that Marcum offered $10 million to settle the case, which the commission said it will accept it. Marcum is major accounting partner in the cannabis industry. Read more here.

Colorado Cannabis Market Shows First Price Rise Since 2021, Ducking Deflation

After nearly a two-year stretch of deflation, marijuana prices in Colorado are showing the first signs of life since October 2021, according to the Colorado Department of Revenue. The retail price for a pound, which had plummeted from a peak of $1,731 in January 2021 to a historic low of $649 by April 2023, has risen to $703 in June 2023. The price hike is a break from the two-year trend of slumping cannabis prices, which hovered around half of the rates seen before 2022. Read more here.

iAnthus Gets Hit With a RICO

A Maryland-based cannabis dispensary, LMS Wellness Benefit LLC, has accused iAnthus Capital Holdings Inc. (CSE: IAN) (OTCPK: ITHUF) of a scheme to divert at least $4.5 million from its funds into iAnthus’ other business interests, according to a lawsuit filed in federal court this week. In the civil RICO suit, LMS claims that a management firm it had hired, S8 Management LLC, which shares several executives and directors with iAnthus, made unauthorized money transfers from LMS’s account to the failing subsidiaries of iAnthus, Law360 reported. Read more here.

Anti-Cannabis Group Sues New York Over Legalization

A group of anti-cannabis parties has banded together to sue the State of New York including Governor Kathy Hochul, the Cannabis Control Board and the Office of Cannabis Management. The case was filed on June 20, 2023. New York passed the Marijuana Regulations and Taxation Act (MRTA) on March 31, 2021 which legalized adult-use cannabis. Read more here.

Unlicensed Dispensary Landlords Face New Penalties Under Council Bill

The City Council passed a bill Thursday that would hold landlords accountable for renting to illegal marijuana retailers, the latest effort to step up enforcement against unlicensed smoke shops. When city inspectors find an unlicensed shop selling cannabis, cigarettes or other tobacco products, the city could issue a warning to the shop’s landlord. If a subsequent inspection turns up more illicit sales, the landlord could be fined $5,000, followed by $10,000 for any subsequent violations, the bill says. Read more here.

In Other News

Fire & Flower On Sale

Fire & Flower Holdings Corp.(TSX: FAF) (OTCQX: FFLWF) has received approval from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act for the implementation of a sale and investment solicitation process to be conducted by FTI Consulting Canada Inc., and a stalking-horse agreement between the company and 2707031 Ontario Inc., an affiliate of Alimentation Couche-Tard Inc. Read more here.

Hexo, Tilray Deal Closes

HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) announced today the closing of the second of two tranches of the non-brokered private placement of Series 1 Preferred Shares previously announced on June 1, 2023 and the subsequent completion of the transactions contemplated by the previously announced statutory plan of arrangement under section 182 of the Business Corporations Act (Ontario) involving the Company and Tilray Brands, Inc. (NASDAQ: TLRY) Read more here.

Debra BorchardtJune 22, 2023

A group of anti-cannabis parties has banded together to sue the State of New York including Governor Kathy Hochul, the Cannabis Control Board and the Office of Cannabis Management. The case was filed on June 20, 2023. New York passed the Marijuana Regulations and Taxation Act (MRTA) on March 31, 2021 which legalized adult-use cannabis.

The parties behind the suit include:

Cannabis Impact Prevention Coalition – Their mission is to prevent impacts from cannabis.
Cannabis Industry Victims Seeking Justice – This group provides advocacy services to victims of the cannabis industry
Phil Orenstein who says he has had devastating personal experiences with cannabis
Edwin De La Cruz – a father concerned over his son’s cannabis consumption and his son Eric
Renee Barchitta, Philip McManus, Robert Caemmerer- members of CIVSJ
Richard McArthur – a member of CIPC
Ronnie Hickey who claims she has suffered from cannabis smoke in her apartment building

The main thrust of the case is that cannabis is still federally illegal and therefore the state can’t legalize it. The group also believes that sending out Mothers Day greetings sends the wrong messages with regard to protecting children’s health. They claim that some New York mothers who used cannabis allowed their children to die.

Many of the arguments in the case border on debunked reefer madness claims. They include:

Risky decision making
Impaired judgment leading to unpredictable behavior
Misinformation on the dangers of cannabis
Not allowing firearm ownership means cannabis consumers can’t exercise self-control

The case accuses politicians of showing a lack of leadership and being misinformed of the dangers of cannabis. The case claims that commercialization of cannabis has caused homelessness, increased car crashes and that even the highways in Colorado “reek of marijuana.”

The court filing stated, “Marijuana products can be very concentrated in potency and reach 99% THC, the psychoactive, intoxicating , mind-altering component of the drug. These products cause addiction, mental illness, birth defects, suicide, violence, DUIs and many adverse general health problems.”

The parties believe that cannabis is not a states right issue and that cannabis laws can’t supersede federal laws. It also cites the issue of cannabis being a Schedule One drug. They accuse the state of creating a marijuana trafficking scheme violating federal law. They claim that the medical marijuana laws in the state of New York are not based on any medical studies and that only FDA-approved cannabis should be considered medical marijuana.

The case is asking that the state nullify the medical and adult-use cannabis laws.

NOT_ASSIGNED_CANNABIS_IMPACT_PREVEN_v_CANNABIS_IMPACT_PREVEN_PETITION_1

Video StaffJune 16, 2023

Just like the old days when cannabis was illegal and Manhattanites got their weed from a guy in a van, Doobie launched a new delivery service that brings products from the licensed Union Square Travel Agency to customers within 60 minutes.

Since there are few licensed operations in the city, many customers may not be near such a store. Doobie also plans to expand into other boroughs.

Debra BorchardtJune 15, 2023