The Daily Hit is a recap of cannabis business news for Dec. 1, 2022.
ON THE SITE
Colorado Cannabis Industry Enduring ‘Largest Downturn’ in its History
One of the most mature cannabis markets in the United States, Colorado, is going through a financial crisis. The statewide industry is suffering a major sales dip that has been trending downward for the better part of a year, and insiders expect business casualties in coming months. Read more here.
Dutchie Co-Founders Step Down, Board Names New Leadership Team
Cannabis tech company Dutchie underwent a major leadership shakeup this week. The co-founding duo of Ross and Zach Lipson stepped down from their leadership posts at the privately held Oregon business, and the board of directors has named a new chief executive officer, chief financial officer, general counsel, and a vice president of engineering. Read more here.
Radient Technologies Deep in Debt, Trying to Swim Upward
Alberta-based cannabis extract maker Radient Technologies Inc. (TSXV: RTI) posted second-quarter results showing it either needs more cash flow or financing to keep the ship sailing. The company said it has overdue liabilities concerning rent, wages, long-term debt, and leases. Read more here.
Can Publicly Traded Bonds Keep the Cannabis Industry from Getting Smoked?
In 2021, cannabis companies racked up $1.65 billion in debt; in 2022, it skyrocketed to more than $5.62 billion of issued debt financing. Alarms are now going off because these loans are maturing, and payments are coming due. Since bankruptcy is not an option, what is the solution? Read more here.
Nevada Doles Out Consumption Lounge Licenses
Nevada picked 20 independent lounge licenses for businesses looking to build out new facilities for consumption lounges and sell product from other operators, with half of those licenses designated for social equity applicants. Read more here.
IN OTHER NEWS
New York’s equity-focused rollout of its legal marijuana market relies heavily on a $200 million fund to support the state’s first retailers. Yet the team picked to raise and manage that money – an NBA Hall of Famer and a shoewear entrepreneur – have repeatedly failed to deliver on their biggest and boldest claims, including investing in entrepreneurs of color with a $100 million fund. Read the NY Cannabis Insider investigation here.
The Minnesota Department of Health will add irritable bowel syndrome and obsessive-compulsive disorder to the list of qualifying medical conditions for participation in Minnesota’s medical cannabis program. Under state law, the new qualifying conditions will take effect Aug. 1, 2023. Read more here.
CordovaCann Corp., a cannabis-focused consumer products and retail company, has forged a deal with Midwest retailer Jackson BevCo Inc. to facilitate the opening and operation of cannabis retail stores within or beside Jacksons convenience stores starting in 2023. Read more here.