John SchroyerAugust 9, 2023
Operating expenses were up in the quarter due to the company's ongoing expansion.
Schwazze Archives - Green Market Report
John SchroyerAugust 9, 2023
StaffMay 30, 2023
The Daily Hit is a recap of the top financial news stories for May 30, 2023.
On The Site
Two Dozen Publicly Traded U.S. Cannabis Companies Lost $4 Billion Last Year
Two dozen of the top plant-touching publicly traded marijuana companies in the United States posted a cumulative financial loss of more than $4 billion in 2022 against nearly $9 billion in revenue, according to analysis of filings by Green Market Report. Read more here.
New York Cannabis Regulators Propose Settlement for Lawsuit Hindering Retail Licensing
New York marijuana industry regulators on Tuesday gave initial approval to a settlement deal that is intended to end a legal fight that has stalled retail cannabis permits in the Finger Lakes Region. Read more here.
Numinus Wellness Shares Soar as Landmark Clinical Study of Psilocybin Therapy Begins
Numinus Wellness Inc. (TSX: NUMI) announced on Tuesday that its subsidiary, Cedar Clinical Research, has begun studying a potential new therapy for treatment-resistant depression (TRD) using COMP360 psilocybin. As a result, shares of NUMI jumped more than 30% to lately sell at 19 cents on the news as of the Phase 3 trial was released on Tuesday morning. Read more here.
Entourage Health Revenue Rises on Pre-Rolls, Medical Marijuana
Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) announced Tuesday a 24% sequential increase in revenue for the first quarter of 2023 ending March 31, with a significant contribution from its medical cannabis stream and adult-use pre-roll sales. Read more here.
YourWay Cannabis Can’t Find An Auditor For Filings
YourWay Cannabis Brands Inc. (CSE: YOUR)(OTC: YOURF) has been delayed in issuing its financial reports because it can’t find an auditor. The company said that since the resignation of its previous auditor Macias Gini & O’Connell LLP in December 2022, it hasn’t been able to find a replacement. Read more here.
In Other News
Minnesota
Surrounded by dozens of cheering people in green clothes, Minnesota Democratic Gov. Tim Walz signed a bill Tuesday to legalize recreational marijuana for people over the age of 21, making Minnesota the 23rd state to legalize the substance for adults. Read more here.
Ohio
Ohioans 21 and older would be able to cultivate, purchase and possess marijuana if a bipartisan bill passes in the Ohio Statehouse, possibly circumventing a ballot measure campaign to force legalization through. Read more here.
North Carolina
A North Carolina state House of Representatives committee has taken up a medical marijuana legalization bill already approved by the state Senate, and activists are hopeful this year the state may embrace MMJ. Read more here.
John SchroyerMay 30, 2023
Many companies dealt with significant one-time writedowns in 2022.
Adam JacksonMay 12, 2023
The deal enhances Schwazze's presence in northern Colorado.
StaffMay 10, 2023The Daily Hit is a recap of the top financial news stories for May 10, 2023.
On the Site
New York Regulators Issue Revised Cannabis Industry Rules
New York’s much-awaited revised marijuana industry rules were issued Wednesday by the Office of Cannabis Management, to the delight of stakeholders who immediately began poring over them for significant changes. The new rules are also on the agenda for Thursday’s Cannabis Control Board meeting. Read more here.
Many New York Stakeholders Skeptical of New Illicit Market Enforcement Push
Following a new push by New York Gov. Kathy Hochul to crack down on unlicensed cannabis sellers across the Empire State last week, few in the legal industry expressed optimism that the policy would have the intended effect, with several predicting that the unregulated market would simply pivot instead of giving up. Read more here.
Missouri Cannabis Sales Pass $1 Billion, Connecticut Sales Down Slightly
Missouri and Connecticut both launched adult-use cannabis markets at the beginning of the year, but they’re seeing very different sales trends. Read more here.
Trulieve Cannabis Records Net Loss Despite High Revenue
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced a net loss despite significant revenue from retail sales for the first quarter ending March 31. The U.S.-based cannabis giant reported a revenue of $289 million for the quarter, with 95% resulting from retail sales. This missed the Yahoo Finance average analyst estimate for sales of $292 million. Read more here.
More Earnings:
• Some AFC Gamma Clients Having Trouble Making Payments
• NewLake Capital Tenant Issues Cloud Yearly Revenue Growth
• Schwazze Turns a Profit in First Quarter, Continues Expansion
• Verano Revenue Up 12%, Adult-Use Sales in Connecticut Bolster Results
• Village Farms’ Canadian Cannabis Sales Grow
In Other News
New York Conditional Adult-Use Retail Dispensary Licenses
A group of Conditional Adult-Use Retail Dispensary (CAURD) licensees have documented in a letter an “alarming and unacceptable” lack of communication and transparency among state cannabis regulators. The group of seven CAURD licensees, along with the Long Island CAURD Coalition and “several others” who signed anonymously, sent the letter late Tuesday night. Read more here.
Synthetic Cannabis
The state of Vermont is cracking down on synthetic cannabis which officials say is creating confusion in the state’s fledgling legal marketplace. This includes delta-8 and delta-10 products. Read more here.
John SchroyerMay 10, 2023The Colorado-based company embarked on hiring and acquisitions sprees during Q1.
StaffApril 25, 2023The Daily Hit is a recap of the top financial news stories for April 25, 2023.
On the Site
Cookies Lawsuit: Company Uses Threats, Violence, Kickbacks to Do Business
The leaders of global cannabis brand Cookies have been using threats, violence and financial kickbacks to enrich themselves at the expense of company shareholders, according to a lawsuit filed by two of the company’s investors. Read more here.
Missouri Cannabis Jobs Boom, Market Saturation Concerns Loom
Legalization of recreational cannabis in Missouri led to a surge in job growth within the industry, but the trend could be slowing as labor needs are met. The number of active licenses to work in the sector catapulted from 9,800 in October to more than 14,000 in March, after voters approved recreational marijuana use through a constitutional amendment last November. Read more here.
Schwazze to Buy Everest Apothecary in New Mexico for $38 Million
Denver-based Medicine Man Technologies Inc., which operates as Schwazze (OTCQX: SHWZ) (NEO: SHWZ), has signed definitive documents to acquire a batch of cannabis assets in New Mexico. The acquisition will allow Schwazze to manage Everest Apothecary, a non-profit corporation operating in the state. Read more here.
Data Confirms 4/20 is THE High Holiday
Now that 4/20 is officially in the rearview mirror, the bean counters say that this year’s holiday did not disappoint. Consumers clearly don’t care whether cannabis companies are making any money or not, they were here to party. Read more here.
Unrivaled Brands Posts Consistent California Revenue in Q1 2023
California-based Unrivaled Brands Inc. (OTCQB: UNRV) reported preliminary financial results for the first quarter 2023, showing revenue of $8.7 million and a gross margin of 48%. The bulk of revenue came from Unrivaled’s three retail stores and cultivation facility. Read more here.
In Other News
Peridot Tree
In a lengthy answering brief filed Monday, the city of Sacramento asked the Ninth Circuit to uphold U.S. District Judge Kimberly J. Mueller’s order abstaining from and pausing a constitutional challenge filed by Kenneth Gay, who owns Peridot Tree Inc, which was denied entry into Sacramento’s equity program for failing to meet residency requirements, as Gay lives out of state. Read more here.
CBD of Denver
CBD of Denver Inc (OTC Pink: CBDD), having begun a restructuring of its operations in fourth quarter of 2022, reported that revenue increased to $113,478 during the quarter from $26, 907 in the previous quarter putting the company back on a growth trajectory that management expects to continue throughout 2023. Read more here.
Minnesota
Minnesota took a step closer to legalizing recreational marijuana for adults after the Democrat-controlled House passed the bill Tuesday. The House approved the measure on a 71-59 vote after a long debate that spanned from Monday night into Tuesday afternoon. Read more here.
Adam JacksonApril 25, 2023
Schwazze will now own 32 dispensaries between Everest Apothecary and R. Greenleaf.
StaffApril 18, 2023The Daily Hit is a recap of the top financial news stories for April 18, 2023.
On the Site
House Committee Launches Probe into FDA’s Inaction on CBD Regulation
Despite the legalization of cannabis containing less than 0.3% THC by the 2018 farm bill, the FDA has yet to issue regulations for CBD products. For years, hemp companies and trade groups have urged the FDA to regulate CBD as a dietary supplement, a proposal the agency declined earlier this year. Read more here.
Schwazze to Buy Standing Akimbo for $10.5 Million
Medicine Man Technologies, better known as Schwazze (OTCQX: SHWZ) (NEO: SHWZ), will acquire Standing Akimbo LLC, a medical cannabis dispensary in Denver in a deal valued at $10.5 million. The acquisition will paid in a combination of cash and stock. It is expected to close in the third quarter of 2023 assuming approval form regulatory authorities. Read more here.
Pineapple Ventures Accused of Fraud
A new lawsuit accuses cannabis insider Vincent Zadeh of committing a new cannabis fraud scheme. Investor Greg Levin alleges that Vincent Mehdizadeh, who goes by the name Vincent Zadeh, convinced him to invest $290,000 into Pineapple Ventures with promises of a $5,000 monthly dividend payment. The promised payments were never delivered, and Levin was unable to recoup his investment. Read more here.
Indiva’s Profits Tighten as CEO Calls For Higher THC Edibles Potency Limits
Canadian cannabis edibles producer Indiva Limited (TSE: NDVA) generated $10.3 million in gross revenue in the fourth quarter, a 17.1% sequential increase from the third quarter, but slightly lower than 2021’s fourth quarter. Edible product sales dropped versus last year, accounting for 80.6% of net revenue in the fourth quarter. Read more here.
In Other News
Washington state
Washington is ready to enter the interstate marketplace for cannabis products, when and if the federal government decides to legalize marijuana. The Legislature approved Senate Bill 5069 to allow state companies to enter marijuana import/export compacts with other states immediately after Congress makes the move. The bill passed the House on March 1 and the Senate on April 12, both with bipartisan support. Read more here.
Utah
A company’s challenge to Utah’s medical marijuana licensing scheme fell flat in the Tenth Circuit after a three-judge appellate panel ruled Tuesday that a state licensing agency had reasonably denied the company a cultivation license in favor of those with more community ties. Read more here.
New York
New York Gov. Kathy Hochul announced a new public education to encourage cannabis consumers to purchase marijuana from licensed operators. The campaign, “Why Buy Legal New York,” aims to promote “safer, informed, legal purchases of cannabis from licensed dispensaries,” the governor’s office said in a news release. Read more here.
Debra BorchardtApril 18, 2023
Upon closing, Schwazze will have 26 retail stores in Colorado.
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