The Daily Hit is a recap of cannabis business news for Dec. 15, 2022.
ON THE SITE
California Investor Claims Fraud on CBD Company
A California investment manager has filed a lawsuit against the principals of a fraudulent CBD company claiming the individuals misrepresented their experience and the company. The court complaint, filed Dec. 9, accuses Paul Fiore and Jay Rifkin of claiming to have cannabis business experience, when they didn’t, and inflating the valuations of companies they were operating. Read more here.
HEXO Beats on Revenue, Cuts Cash Burn as it Tries to Stay Alive
HEXO Corp. (TSX: HEXO) (Nasdaq: HEXO) posted earnings that beat revenue expectations as restructuring acrobatics over the past year continues to play out for the company. Net revenues for the quarter were C$35.8 million, down 29% versus C$50.2 million in the same period last year. The company said that the decline was attributable in part to “the timing of revenue recognition as certain shipments failed to reach their destination due to severe weather towards the period end.” Read more here.
RIV Capital Closes Acquisition of Etain, Preps for Expansion in New York
RIV Capital Inc. (CSE: RIV) (OTC: CNPOF), an acquisition and investment firm, closed its previously announced acquisition of Etain LLC, one of 10 vertically integrated cannabis operators in New York. Under the terms of the transaction, RIV Capital paid the remaining purchase price with $42 million in cash and C$8.7 million in newly issued shares. Read more here.
University of Illinois Plans Cannabis Research Center
Discovery Partners Institute, the University of Illinois research center underway in the South Loop, has high hopes to launch a marijuana research facility. DPI has support from the city of Chicago and the state of Illinois, but it doesn’t yet have funding commitments from either one for a project that likely will need tens of millions to become a reality. Read more here.
Primitiv Tackles the Michigan Cannabis Market
Michigan-based cannabis company Primitiv is dedicated to the advancement of cannabis as a form of elevated wellness, believing that the plant holds incredible potential as a healing agent. Green Market Report caught up with co-founders, Calvin Johnson Jr. and Rob Sims, at MJBizCon in November to talk about how they’re tackling the Michigan market. Check out the conversation here.
IN OTHER NEWS
Diego Pellicer Worldwide
Diego Pellicer Worldwide Inc. (OTC Market: DPWW), a premium cannabis company, announced that it has signed a binding settlement term sheet with its Colorado tenants, Royal Asset Management LLC and Venture Product Consulting LLC. Under the terms, Neil Demers, the majority owner of RAM and VPC, will transfer and cause to transfer 100% of all membership interests of RAM and 99% of membership interests of VPC to Diego or a special purpose acquisition company designated by Diego. The agreement resolves a lawsuit in which the company alleged that RAM was in breach of contract for failure to make payments under sublease agreements and a promissory note that Diego issued to RAM. Read more here.
C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) (“C21” or the “Company”), a vertically integrated cannabis company, reported revenue of $7.2 million for the third quarter ended Oct. 3. Overall revenue fell 0.4% from the second quarter, while sales in Nevada declined 14.7% during the period. Read more here.