North Dakota Archives - Green Market Report

StaffOctober 24, 2022
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The Daily Hit is a recap of cannabis business news for Oct. 24, 2022.

ON THE SITE

Consumers Paying a Lot More for Weed in Illinois

Retail marijuana prices in Illinois have been among the highest in the nation because of a relatively limited number of stores since recreational weed became legal nearly three years ago. But retail weed prices are down 15% so far this year, Cantor Fitzgerald analyst Pablo Zuanic writes in a note to clients. Read more here.

Flora Growth Buys German Franchise Global Health

Flora Growth Corp. (Nasdaq: FLGC) announced it is buying German-based medical cannabis company Franchise Global Health Inc. (TSXV: FGH) for an undisclosed amount. However, Flora Growth did note in a statement that FGH’s German reportable segment achieved revenues of C$30.1 million, gross profit of C$2.1 million, and net income of C$0.4 million in the first half of 2022. Read more here.

Canadian Cannabis Company on Brink of Bankruptcy as Debt Comes Due

Radient Technologies Inc. (TSXV: RTI) is looking for ways to stay open as unpaid taxes and a looming debt bill worth more than $10 million comes due. Radient said that is pursuing avenues to raise sufficient working capital to allow the company to operate as a going concern, “but cannot assure it will be able to do so.” Read more here.

Both Dakotas Consider Recreational Cannabis Next Month

South Dakota and North Dakota both will ask voters whether to lift state prohibitions on adult-use marijuana in the upcoming Nov. 8 general election. Read more about what each of those measures include here.

IN OTHER NEWS

Ascend Wellness Holdings

Ascend Wellness Holdings Inc. (CSE: AAWH.U) (OTCQX: AAWH), a multistate, vertically integrated cannabis operator focused on bettering lives through cannabis, announced the opening of its Scranton, Pennsylvania, dispensary for medical patients only. Read more here.

Neptune Wellness Solutions

Neptune Wellness Solutions Inc. (Nasdaq: NEPT), a diversified and fully integrated health and wellness company, has agreed to settle and resolve a shareholder class action lawsuit for total consideration of between $4 million and $4.25 million. The suit filed against Neptune and certain of its current and former officers and directors, captioned Gong v. Neptune Wellness Solutions, Inc. (Case No. 2:21-cv-01386-ENV-ARL), relates to allegations that, among other things, the company made misrepresentations of material information. Read more here.


Adam JacksonOctober 24, 2022
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South Dakota and North Dakota both will ask voters whether to lift state prohibitions on adult-use marijuana in the upcoming Nov. 8 general election.

South Dakota

Voters in South Dakota made history in 2020 after becoming the first state to pass measures to legalize both medical and recreational use at the same time. However, while advocates managed to save the medical cannabis measure from capitulation, Republican Gov. Kristi Noem bolstered a lawsuit to challenge the recreational-use proposal.

The state Supreme Court eventually ruled that it violated the state Constitution, invoking the “single-subject rule” and finding that recreational marijuana, medical marijuana, and hemp are each separate issues.

The new Measure 27 is a streamlined version of the previous adult-use measure. The proposed law would allow people 21 years old and older to consume and cultivate cannabis for personal use and limiting the amount that people could use or share to one ounce.

“We wrote a very short and simple statutory initiative that we felt had the lowest chance of being taken to court on a single-subject challenge,” Matthew Schweich, the campaign manager of South Dakotans for Better Marijuana Laws, told OpenSecrets.

South Dakotans for Better Marijuana Laws, the committee which raised more than $2.2 million for the failed Measure 26, has collected more than $320,000 for the new bid.

New Approach PAC, an arm of New Approach Advocacy Fund, a D.C.-based group that supports campaigns to legalize cannabis, has given the South Dakota pro-cannabis committee nearly $2 million over the past two efforts.

North Dakota

In North Dakota, which already has a medical marijuana program, a committee named New Approach North Dakota spearheaded what has turned out to be a relatively uncontentious battle to legalize recreational marijuana, with a little over half-a-million dollars in its coffers.

An influential oil industry group that previously helped finance opposition the first time around decided to forgo the opportunity this time. Other groups, including the state’s largest business chamber, decided that public perception of cannabis has significantly changed and spending money to oppose the measure might not be worth it.

Oil interests have been battling legalization because many industry jobs require drug tests. Allowing people to smoke recreationally would shrink the labor pool, Ron Ness, president of North Dakota Petroleum Council, told the Associated Press.

Ness added that one in five North Dakota jobs are directly or indirectly linked to the state’s oil industry.

The North Dakota recreational measure would allow people 21 years old and over to purchase and possess up to one ounce of cannabis for personal use.

The initiative, however, lacks pathway for expungements for past convictions of nonviolent cannabis crimes. Activists have said that they intend to push for social-equity provisions through the legislature should the initiative pass.


Debra BorchardtJune 4, 2020
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Grassroots Cannabis has sold two facilities it operated in North Dakota to Scythian Real Estate. Scythian purchased the properties from Grassroots Cannabis for $3.4M. Grassroots is going to lease back the properties. Grassroots Cannabis will continue to operate both North Dakota locations under the name Herbology, offering high-quality medical marijuana products including flower, concentrates, tinctures, vape pens and topicals, as well as one-on-one patient consulting.

“This sale-and-leaseback agreement with Scythian represents a non-dilutive capital solution for Grassroots Cannabis as we expand our retail operations,” said Steven Weisman, Chief Strategy Officer and Co-founder of Grassroots Cannabis.

Curaleaf (OTC:CURLF)  announced it was acquiring Grassroots in 2019, but the deal has yet to close. In May, Curaleaf said it is still working through state approvals and hopes to close by the end of the second quarter.

Joseph Lusardi, Chief Executive Officer of Curaleaf said in the company’s recent earnings release, “We expect the pending completion of our purchase of Grassroots, the largest private vertically integrated multi-state cannabis operator, to affirm our position as the world’s largest cannabis company by both revenue and operating presence.”

Scythian Deal

The acquisition includes a recently renovated 4,500-square-foot facility located at 310 US-2 in Devils Lake and a newly constructed 4,995-square-foot facility located at 318 24th St. East in Dickinson.

“Scythian is committed to working with cannabis operators like Grassroots Cannabis that have a proven track record of success,” said Randy Roberts, Partner at Scythian. “Both of these locations are well-positioned to support the long-term growth of Scythian’s portfolio as we continue to identify opportunities with highly sophisticated operators in quality markets.”

Scythian’s investment fund is currently valued at nearly $40 million with 18 assets under management, including various locations operated by The Green Solution in Colorado. The firm is raising an additional $25 million in capital to fulfill an existing acquisition pipeline across multiple states.

Acreage Holdings has announced early in April it was closing the North Dakota dispensary. The North Dakota location operated under Acreage’s “Botanist” banner — reopened as Pure Dakota Health, according to the state’s Division of Medical Marijuana.


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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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