Scotts Miracle-Gro Archives - Green Market Report

StaffMay 4, 2023
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4min9070

The Daily Hit is a recap of the top financial news stories for May 4, 2023.

On the Site

Scotts Miracle-Gro Makes Positive Comments On Cannabis

The challenges presented by the cannabis industry are harder to combat than those presented by COVID-19, at least according to the CEO of Scotts Miracle-Gro. During Scotts (NYSE: SMG) latest earnings call, CEO Jim Hagedorn made some fairly positive comments about the cannabis industry, while also delivering an unvarnished assessment of the challenges. Read more here.

Tilray’s SweetWater Inks Mercedes-Benz Stadium Deal

Tilray Brands Inc. (Nasdaq: TLRY) subsidiary SweetWater Brewing Company signed a new partnership with Mercedes-Benz Stadium and the opening of two new branded bars at Atlanta’s premier sports and entertainment venue, which is home to the NFL’s Atlanta Falcons and Atlanta United of Major League Soccer. Read more here.

Green Thumb Industries Agrees to 50% Wage Hike Following Worker Strike

Following an employee strike in Illinois that began just one day before the cannabis holiday of April 20, workers at two facilities owned by Green Thumb Industries have won a 50% wage increase, according to a press release on Tuesday from the International Brotherhood of Teamsters. Read more here.

Alaska ‘Bud & Breakfast’ Cannabis Scam Netted Couple $700k, Feds Say

A married couple from a small town in the far interior of Alaska has been charged with wire fraud in connection with a sham marijuana tourism business that they never intended to launch, federal prosecutors said in a recently unsealed indictment. Read more here.

Earnings:

Revenue, Losses Down for Jones Soda in First Quarter

Simply Better Brands Revenue Jumps 254%

In Other News

Eastern Band of Cherokee Indians

In a reverse decision, the Eastern Band of Cherokee Indians’ Tribal Council withdrew its backing of a $64 million loan to support the Tribe’s medical cannabis program. During a meeting on Thursday, Principal Chief Richard Sneed vetoed the council’s initial approval in a multipage letter and called for an “immediate need for an accounting of the money spent to date.” Read more here.

Oregon

Oregon Secretary of State Shemia Fagan will continue in her official duties until Monday, May 8, at which point Deputy Secretary Cheryl Myers will take on oversight of the agency until a new Secretary is appointed by the governor. Fagan resigned after an ethics investigation was announced related to her consulting role for a cannabis company. Read more here.


Debra BorchardtFebruary 23, 2023
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3min9560

RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) settled its conflict with JW Asset Management LLC (JWAM) related to the company’s acquisition of New York medical cannabis operator Etain. JWAM had complained about the purchase price paid for Etain by Riv Capital.

Etain Settlement

RIV Capital has repurchased for cancellation all RIV Capital Class A common shares currently owned or controlled by JWAM and its affiliates, amounting to 33,733,334 shares, for an aggregate purchase price of $19,625,000. RIV Capital also reimbursed certain legal expenses incurred by JWAM as part of its application and related matters in the amount of $375,000.

RIV Capital funded such amounts with cash on hand. As part of the settlement, JWAM and its affiliated funds have also withdrawn their requisition for a special meeting of the company’s shareholders currently scheduled for June 6, which meeting will be canceled by the company.

JWAM sought a remedy requiring the JWAM Shares to be repurchased by the company at a price of C$1.65 (US$1.22) per share. This math works out to US$0.58 per share.

“I am glad to have reached a mutually beneficial agreement that enables both parties to move forward in a positive manner,” said Mark Sims, director, president, and chief executive officer of RIV Capital. “In our view, our share price simply does not reflect the intrinsic value of our unique assets – industry-leading liquidity, reputable strategic partner, and vertical license in New York.

“Our board of directors, on the recommendation of the Conflicts Review Committee, which is comprised solely of independent directors, determined that this settlement is in the best interest of the company, as it mitigates the risks associated with the application and the remedies sought by JWAM,” Sims continued. “Now that these claims have been resolved, we can focus on continuing to operationalize New York, in addition to exploring a range of opportunities inside and outside of New York as we seek to build our platform going forward.”

Hawthorne Settlement

The Hawthorne Collective Inc. owned by Scott’s Miracle-Gro (NYSE: SMG), also said it settled its conflict with JWAM and Jason Wild.

According to the statement, Jason Wild and JWAM have agreed, among other things, not to take any action that would interfere with The Hawthorne Collective’s agreements with the company or any rights set forth in those agreements.


StaffFebruary 1, 2023
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5min8060

The Daily Hit is a recap of the top financial news stories for February 1, 2023.

On the Site

Two Dozen Indicted for California-to-New York Cannabis Smuggling Ring

According to a press release from the U.S. Attorney’s Office in the Northern District of New York, the indictments cover an alleged six-year operation that “shipped thousands of kilograms of marijuana” and edibles from Fresno, California, to “locations throughout the United States, including the Capital Region of New York.” Read more here.

Scotts Gets Lift on Better than Expected Earnings, But Hawthorne Struggles

The Scotts Miracle-Gro Company (NYSE: SMG) announced results for its fiscal first quarter ending December 31, 2022, with revenue dropping by 7% to $526.6 million. This beat the Yahoo Finance average analyst estimate which was $501 million. Hawthorne segment sales decreased 31% to $131.5 million. Read more here.

New York District Judge Stays Firm on Social Equity Retail Pause

A district judge in New York said on Tuesday that the state must hold off on doling out licenses to social equity applicants in certain regions while a case against it makes its way through court. The injunction means applicants in five regions must continue to wait. Read more here.

InterCure Kills Deal to Buy Better

InterCure Ltd. (Nasdaq: INCR) (TSX: INCR.U) has killed its deal with Cann Pharmaceutical Ltd., announced Feb. 13, 2022, to buy the company, which is also known as Better. The acquisition was already in trouble in November 2022, with the company citing fundamental disagreements between the parties. InterCure also said that the closing conditions contained in the agreement were not met and the agreement was terminated. Read more here.

New York Gives Cannabis Farmers Another Month to Choose Business Model

New York cannabis regulators extended a deadline for marijuana farmers to choose their business model to the end of the month, instead of requiring them to make a choice by Feb. 1, one farmer confirmed to Green Market Report. The state Office of Cannabis Management relented on Monday during negotiations with cannabis farmers and gave all 280 growers until Feb. 28 to make their business model selection. Read more here.

In Other News

Treez

Treez, an enterprise commerce technology platform that streamlines retail and supply chain operations within the cannabis industry, reported continued growth in its 2022 full-year results. The report reflected the launch of new offerings, global and U.S. expansion, a successful capital raise, and the acquisition of fintech technology company Swifter, among other achievements. Read more here.

FRX Real Estate Holding Co.

A lawsuit seeking more than $2 million has been filed in Columbiana County Common Pleas Court against FRX Real Estate Holding Co. of Ohio LLC by the general contractor who worked on its new medical marijuana cultivation and processing plant in East End. According to court dockets filed Jan. 26, Palmer Construction Co. says FarmaceuticalRX LLC, an affiliate of the holding company, failed to pay the construction company for work performed. Read more here.

FarmaceuticalRX LLC

Former delivery drivers for a Pennsylvania medical cannabis company told a federal court that their claims that they were unlawfully misclassified as independent contractors and denied overtime wages are strong enough to survive a dismissal bid. Read more here.


StaffNovember 2, 2022
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6min13000

The Daily Hit is a recap of cannabis business news for Nov. 2, 2022.

ON THE SITE

Green Thumb Beats on Record Revenue, Circle K Stores Remain in Question

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) posted positive results that beat analysts’ expectations, with record revenue showing the demand for cannabis even as profits shrink industrywide. Green Thumb reported third-quarter revenue of $261.2 million, up 2.7% sequentially and up 11.8% from the prior-year period. This beat the Yahoo Finance average analyst estimate of $257.3 million. Read more here.

The Parent Company Sells Off Extraction Division

In yet another sign that the licensed California cannabis market is struggling, San Jose-based TPCO Holding Corp. (NEO: GRAM) (OTCQX: GRAMF) announced Wednesday that it had sold off its entire extraction division, a subsidiary called SISU Extraction LLC, for an undisclosed sum. Read more here.

Tilray Inks Distribution Deal with Charlotte’s Web Ahead of Health Canada Review

Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) has inked a partnership with U.S.-based CBD giant Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) to sell hemp extract products in Canada. Under the agreement, Charlotte’s Web’s full-spectrum CBD products will be reach dispensary shelves through Tilray’s distribution network. Previously Charlotte’s Web products were only available in Canada to those that qualified for a special access medical exemption through Health Canada for specific need-states. Read more here.

Scotts Sales Drop 33% in Fourth Quarter, More Than Forecast

The Scotts Miracle-Gro Company (NYSE: SMG) announced in its financial results for the fourth quarter that ended Sept. 30, 2022, that sales fell by 33% to $493.6 million reflecting decreases in both major business segments. This missed the Yahoo Finance analyst estimates for sales of $519 million. Read more here.

Treez Acquires Payment Company Swifter

Cannabis cloud commerce platform company Treez is buying the payment solutions company Swifter. The value of the transaction was not disclosed. However, it does follow Treez Series C funding round of $51 million in April 2022. At the time the company said it would use the new funds to expand its footprint, pursue market expansion opportunities, and invest in partnerships that would connect each link in the supply chain. Read more here.

India Globalization Revenue Rises as it Shaves Losses

India Globalization Capital Inc. (NYSE American: IGC) posted rising revenues and cut losses as it reported its second fiscal quarter 2023 financial results. Revenue was roughly $202,000 for the second quarter, versus $56,000 during the same time last year. The company said that the rise in revenue is due mostly to growing sales of its CBD-based products and services, which increased 345% over last year. Read more here.

IN OTHER NEWS

Heritage Cannabis

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) has entered into an equity line of credit agreement with Obsidian Global Partners LLC whereby Obsidian proposes to purchase common shares in the capital of Heritage for the aggregate gross proceeds of up to $20 million by private placement, at Heritage’s discretion. Read more here.

Cansortium Inc.

Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF), a vertically integrated cannabis company operating under the Fluent brand, has agreed with certain of its directors to issue an aggregate of 1,048,386 common shares to such directors in exchange for the cancelling $162,500 of owed director fees. Read more here.


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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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