Oregon Archives - Green Market Report

Debra BorchardtApril 20, 2023


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. The licensing follows a regulatory framework created by M109, the Oregon Psilocybin Services Act. The OHA  said it issued the licenses to David Naftalin, Alexander Polvi and Jeanette Small.

“We want to congratulate the first facilitators to be licensed in Oregon,” says Oregon Psilocybin Services (OPS) Section Manager Angie Allbee. “As your work in providing non-directive psilocybin services takes shape, we thank you for your dedication to client safety and access as we move closer to opening service centers.”

In 2020, Oregonians passed Measure 109, the Oregon Psilocybin Services Act, which is now codified in Oregon law (ORS 475A). Oregon became the first state in the nation to implement a regulatory framework for the production of psilocybin products and the provision of psilocybin services. The Oregon Psilocybin Services (OPS) section is part of the Oregon Health Authority Public Health Division’s Center for Health Protection. OPS adopted final rules (OAR 333-333) in December 2022 and began accepting applications for four license types in January 2023, which include facilitator licenses, service center licenses, manufacturer licenses, and laboratory licenses.

The OHA stated that psilocybin administration sessions can only take place in licensed service centers statewide. These centers can employ and/or contract licensed facilitators trained to support preparation, administration, and integration sessions with clients. Service centers will provide psilocybin products produced by licensed manufacturers and tested by licensed laboratories. Currently, two manufacturers have licenses for producing psilocybin in the state. OPS anticipates issuing licenses to service center and laboratory applicants in the coming months.

The OHA also published a Psilocybin Resource Business Guide and the Oregon Psilocybin Advisory Board will be meeting again on May 5, 2023. At that time the board will review the following:
• Licensing Stats
• Letter to U.S. Attorney for Oregon
• Workday annual trainings
• Compensation

Debra BorchardtApril 6, 2023


Better late than never, Silo Wellness Inc. (CSE: SILO) (OTCQB: SILFF) finally delivered its annual report for the year ending October 2022. Sales revenue for the year was $335,811, showing a significant increase of 179% from the previous year, which reported $120,120. Silo also reported a net loss of $5,812,400 for the year, a slight improvement over last year’s net loss of $6,208,882 in 2021. The net loss per share, basic and diluted, for the year was $0.87, showing an improvement from the previous year’s $2.00.

“The 2022 year-end audit has been an extensive process primarily due to the low materiality threshold because of the small size of our market cap, the complexity of the April 2022 debt financing, and all the recent debt restructuring. I’d like to thank our CFO Winfield Ding and our auditors at Zeifmans for their work to get this over the finish line and the patience of our shareholders and other interested parties,” said Mike Arnold, Silo Wellness founder and CEO.

Going Concern

Silo is still a going concern and said its future is dependent on its continued ability to raise capital through public equity financings or upon the generation of profits from potential revenue streams, the outcome of which cannot be predicted at this time. The company said in a statement that its current liquidity strategy is as follows: encourage management to convert consulting fees to stock over time; continue negotiating debt restructuring with remaining creditors; maintain or increase profit margins in Jamaica; and bridge financing to cover a potential rights offering for existing shareholders. The company is also considering whether it can execute a Regulation A offering to finance an Oregon-based subsidiary covering Oregon operations.

The company wrote in its annual report that it has $25,710 cash (October 31, 2022 – $115) on January 31, 2023, and $44,517 (October 31, 2022 – $64,066) amounts receivable and other current assets. Total assets are $70,227 (2022 – $64,181). The Company has incurred losses since inception and as of January 31, 2023, has a cumulative deficit of $15,243,566 (October 31, 2022 – $15,052,475) and a working capital deficit of $5,434,077 (2022 – $5,304,092).

Costs Down

The cost of goods sold for 2022 was $212,849, indicating a decrease of 45% from the previous year, which reported $388,614. As a result, the Company’s gross margin was $122,962, compared to a loss of $268,494 in 2021, representing a significant improvement in the gross margin of 145%.

The company reported total expenses of $5,544,819, representing an increase of 16% compared to $4,789,543 in 2021, reflecting an increase in advertising and promotion fees, consultant fees, and management fees. The advertising and promotion fees were $3,643,165 in 2022, representing a growth of 140% compared to $1,517,336 in 2021.

Marley One

Last year Silo decided against moving forward with its business model with Marley One or other functional mushroom products as the Bob Marley-branded products did not generate operating profits. Due to the termination of the Marley One royalty agreement in 2022, the company said it accrued a $2,650,000 advertising fee for royalty payments due on the termination of the agreement. However, while these expenses were booked for the company, the company previously released in March that those liabilities were removed from the balance sheet due to divesting the subsidiary that possessed that debt. Consultant fees, directors’ fees, and management fees were $736,658 in 2022, indicating a decrease of 47% compared to $1,394,075 in 2021.

“It was a pointless endeavor for us to advance this asset given the Marley debt that was marooned in this subsidiary,” stated Arnold. “We attempted to negotiate terms with the Bob Marley family as previously disclosed to no avail. Mr. Hartman as the lead inventor of the patent-pending intellectual property is in the best position to attempt to extract value out of this debt-soaked asset. If he manages to do so, we would be entitled to royalties after any secured debt is cleared. We are very excited for this creative resolution and to finally be done with the Marley transaction and its debt.”

Looking Ahead

Last month Silo announced a strategic partnership with Oregon-based Satya, Inc. to develop an ecosystem supporting the well-being of psilocybin patients and Oregonian entrepreneurs. This partnership includes a Raw Materials Supply and Purchase Agreement, which provides Silo with the Right of First Refusal (ROFR) for Satya’s psilocybin biomass that becomes available for sale. This agreement enhances the Company’s revenue-generating potential in the psychedelic space. Arnold stated, “Our mission is to make psychedelic treatments safe, ethical, and accessible to Oregonians while safeguarding local businesses from potentially exploitative out-of-state interests. By partnering with Satya, we establish a sustainable and reliable source of high-quality raw materials, allowing us to fulfill our vision. This agreement is a significant step in mitigating a key industry risk, ensuring we have access to the controlled substances necessary for treatment. With this agreement, we gain access to biomass, providing a dependable source of medicine to support our potential operations and strategic objectives.”

Arnold continued, “With the audit process firmly behind us, our focus continues to be on continuing revenue-generating operations in Jamaica and moving forward our Oregon psilocybin strategy.”

Adam JacksonDecember 13, 2022


Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) posted temperate earnings results that show rising revenue and positive free cash flow. The craft cannabis company operating in Oregon and Michigan reported its unaudited results for the fourth quarter ending October 31.

Grown Rogue posted revenue of $5.07 million, a 35% rise versus $3.76 million in the fourth quarter last year. It also improved over the previous quarter’s revenue of $4.2 million. Net loss totaled $397,324 for the quarter, down from a $431,000 net income in the same time last year.

“I couldn’t be more thrilled about our record revenue and adjusted EBITDA, closing out a record year including achieving positive free cash flow for the year,” said CEO Obie Strickler. “It’s even more exciting to watch our team continue to increase market share in Oregon and Michigan by staying true to our focus towards ensuring customers experience leading craft quality and genetics at an attractive value.”

Adjusted EBITDA for the quarter came out to $1.66 million versus $1.2 million in the same quarter last year, “up 39%, despite pricing headwinds in our markets, particularly in Michigan,” the Strickler added. The gross margin was 63.4% in the quarter before fair value adjustments.

Grown Rogue held the crown for the top flower brand in Oregon for the sixth consecutive quarter, according to LeafLink’s MarketScape data. Over the year, total harvested wet weights for the state of Oregon fell 13% for indoor and 21% for outdoor, respectively. “In Oregon, we saw continued reduction in total supply as many cultivators exit or scale back their business, which should result in a pricing rebound in 2023,” Strickler said.

The company also closed on a $2 million convertible debenture financing arrangement over the period.

“It’s also great to see a shifting of investor sentiment towards strong operators and management teams reflected in our recently closed a $2 million convertible debt financing with Mindset Capital at very attractive terms to the company,” Strickler said. “We are planning to continue our disciplined approach to capital allocation as we look to accelerate expansion plans into new markets. I look forward to updating Grown Rogue shareholders on these efforts in the future.”

StaffNovember 22, 2022


The Daily Hit is a recap of cannabis business news for Nov. 22, 2022.


Rhode Island Green Lights Recreational Sales for Five Dispensaries

Recreational cannabis sales will kick off next month in Rhode Island for at least five existing medical dispensaries, Gov. Dan McKee announced today. In a press release, McKee said he and the state Department of Business Regulation have granted “hybrid retail licenses” to the five dispensaries, which will be able to start selling adult-use cannabis on Dec. 1. Read more here.

Oregon Governor Pardons 45,000 Cannabis Convictions

Oregon Gov. Kate Brown this week announced she’s heeding President Joe Biden’s call last month for U.S. governors to pardon low-level cannabis convictions and pardoned roughly 45,000 residents. Read more here.

New Products Drive Revenue Growth for Canadian Edibles Maker Indiva

Canadian edibles producer Indiva (TSXV: NDVA) (OTCQX: NDVAF) launched a “record number” of new products in the third quarter of 2022, which drove up revenues to year-over-year growth of 5.9%, but the company still recorded a loss of $1.9 million. Read more here.

Medical Marijuana Inc. Posts Falling Revenue, Focuses on Overseas Hemp Ventures

Medical Marijuana Inc. (OTC: MJNA) saw revenue fall in the third quarter despite cutting costs in during the period, according to financial results for the quarter ended Sept. 30. Those measures mostly benefitted margins for the company. Read more here.

Report: Cannabis Flower Prices Continue Freefall

Inflation might be getting all the headlines, but cannabis flower appears to be immune from its influence. According to data from cannabis analytics firm Headset, the most popular consumption format for cannabis has been suffering wide-scale price compressionRead more here.


Etain LLC

The New York State Cannabis Control Board and the New York State Office of Cannabis Management have approved Etain LLC’s change of control request. Etain is the owner and operator of a legally licensed Registered Organization with cannabis cultivation and manufacturing facilities and retail dispensaries in the state of New York. This approval clears the path for RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) to complete its previously announced acquisition of Etain and Etain IP LLC. Read more here.


Oregon cannabis regulators approved a final rule Nov. 17 to address gaps in the regulated laboratory testing sector that have drawn licensee complaints about THC potency numbers in the competitive state environment. Under the new rule, the Oregon Liquor and Cannabis Commission may require a licensee to submit samples identified by the commission to a laboratory of the commission’s choosing to be tested in order to determine whether a licensee is in compliance with the cannabis testing. Read more here.

Société québécoise du cannabis (SQDC)

For the second quarter of its current fiscal year, the Société québécoise du cannabis (SQDC) has reported comprehensive income of $22.3 million. The SQDC is a government corporation mandated to distribute and sell cannabis in Québec with a focus on protecting customers’ health and safety. Read more here.

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