Dustin WalshOctober 13, 2023
No other bidders reached Tropics' bid.
Skymint Archives - Green Market Report
Dustin WalshOctober 13, 2023
StaffAugust 14, 2023
The Daily Hit is a recap of the top financial news stories for Aug. 14, 2023.
On the Site
SNDL Sees Gains From Vice Segments, Will Ring-Fence Skymint and Parallel
Canadian cannabis and liquor retailer SNDL Inc. (NASDAQ: SNDL) reported earnings that signaled more upward growth through the second quarter ending June 30, with the company hinting at plans to create a new entity that would absorb Skymint and Parallel. Read more here.
Michigan Cannabis Sales Break Another Record in July, Likely to Top $3B in 2023
Michigan’s marijuana market continues its ascent, breaking another sales record in July. The industry sold roughly $276.75 million worth of adult-use recreational and medical marijuana products last month, a 33.5% increase over January’s sales. If sales continue at this pace, they will top $3 billion in 2023. Read more here.
Harmony Biosciences Buys Zynerba Pharmaceuticals in $60M Deal
Harmony Biosciences Holdings Inc. (Nasdaq: HRMY) is buying Zynerba Pharmaceuticals Inc. (Nasdaq: ZYNE) in an all-cash deal valued at $60 million. Harmony will fund the transaction from its existing cash on hand. The deal is expected to close in the fourth quarter. Read more here.
Columbia Care Beats Estimates for Second Quarter Revenue
Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) reported its financial results for the second quarter ended June 30, 2023, as revenue fell slightly to $129.2 million from last year’s $129.5 million, but improved over the previous quarter’s revenue of $124.5 million. However, it beat the Yahoo Finance average analyst estimate for revenues of $124 million. Read more here.
More Earnings:
• 22nd Century Gets Lift From Cannabis Division in Q2
• Auxly Sees Revenues Drop 8% in Second Quarter
• Clever Leaves Revenue Rises, Costs Fall in Q2
• Glass House Shrinks Losses to $25M in Q2 on Revenue Increase
• Goodness Growth in Line with Expectations in Q2, Will Divest in NY
• IM Cannabis’ Revenues Inch Up
• MediPharm Labs Q2 Boosted by VIVO Acquisition
• Safe Harbor Losses Mount Despite Skyrocketing Revenue
• Tilt Revenue Falls as Focus Turns to Jupiter
• Urban-Gro Losses Stable While Revenues Continue Down from 2022
In Other News
AdvisorShares Poseidon Dynamic Cannabis Exchange Traded Fund
The AdvisorShares Poseidon Dynamic Cannabis Exchange Traded Fund (ETF), which is managed by the Paxhia sibling founders of California-based cannabis hedge fund Poseidon Investment Management, is shutting down less than two years after launching. Read more here.
CBD of Denver
CBD of Denver (OTC Pink: CBDD) entered into an agreement to acquire LUXORA Holding AG, a leader in the CBD wholesale market, seamlessly importing and distributing premier North American CBD Flower throughout Europe. Read more here.
Delta 9 Cannabis Inc.
Delta 9 Cannabis Inc. (TSX: DN) (OTC: DLTNF) reported net revenue of $18.3 million for the second quarter ended June 30, an increase of 4%, from $17.5 million for the same quarter last year. Read more here.
CEA Industries
CEA Industries Inc. (Nasdaq: CEAD) reported revenue in the second quarter of 2023 was $1.1 million compared to $3.0 million for the same period in 2022. The decrease was primarily attributed to lower revenue recognition from the company’s backlog and an overall reduction in capital expenditures by cannabis operators. Read more here.
Adam JacksonAugust 14, 2023Approval of such a plan has proven to be an uphill battle.
StaffJuly 5, 2023
The Daily Hit is a recap of the top financial news stories for July 5, 2023.
On the Site
MedMen Names New CEO, CFO
Embattled marijuana multistate operator MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced new company leadership on Wednesday, with former Acreage Holdings executive Ellen Deutsch appointed CEO by the MedMen board of directors, and Amit Pandey named CFO. The move comes as MedMen has been struggling to shed its status as a going concern. Read more here.
FTC, FDA Crack Down on Delta-8 Products Resembling Children’s Snacks
In an attempt to prevent marketing practices that endanger children, the Federal Trade Commission and the U.S. Food and Drug Administration targeted companies marketing THC-infused edible products with packaging that too closely resembles children’s snacks and candy. Read more here.
Wrigley Wins Effort to Stop Zkittlez
Cannabis companies have learned the hard way that cheeky takeoffs on familiar brands can only last for a limited time. It was no surprise that candy creator W.M. Wrigley Jr. sued cannabis company Terphogz for copying its iconic candy Skittles and its phrase “Taste the Rainbow.” All of the logos were trademarked by Wrigley. Read more here.
Maryland Adult-Use Sales Top $6 Million in First Two Days
Maryland cannabis retailers hit $6.4 million in the first two days of recreational sales this past holiday weekend, according to state data. With medical marijuana sales added in, the Maryland cannabis market sold $10.4 million on Saturday and Sunday. Read more here.
Skymint Assets to be Auctioned Off Next Month
Aug. 8 has been chosen for when vertically integrated cannabis chain Skymint will be sold off for parts at auction, putting a final touch on one of the most dramatic cannabis industry collapses to date in Michigan’s struggling marijuana market. Read more here.
In Other News
Greenlane Holdings
Greenlane Holdings, Inc. (Nasdaq: GNLN) closed its previously announced “reasonable best efforts” public offering of 4,047,619 units at a public offering price of $1.05 per unit. The units issued consist of one share of Class A common stock (or a prefunded warrant in lieu thereof) and two common warrants each exercisable for one share of Class A common stock at an exercise price of $1.05 per share. Read more here.
Ohio
The Coalition to Regulate Marijuana Like Alcohol said it is delivering more than 220,000 signatures to the Ohio Secretary of State on Wednesday, July 5, which should be more than enough to place its initiated statute for an adult-use marijuana program for the Nov. 7 ballot. Read more here.
John SchroyerJuly 5, 2023Investor Tropics LP has already submitted a bid for $109.4 million.
StaffJune 1, 2023The Daily Hit is a recap of the top financial news stories for June 1, 2023.
On the Site
Trulieve to Shutter Operations in Massachusetts, California
Florida-based giant Trulieve Cannabis Corp. is bowing out of two mature cannabis markets – California and Massachusetts – citing turbulent conditions for legal cannabis businesses. The company said in a press release that the decision is part of a wider plan to save money and improve financial health. Read more here.
Tilray’s Withdrawal from Bob Marley Licensing Deal Triggers Lawsuit
Docklight Brands Inc. filed a complaint against cannabis giant Tilray Inc., accusing the company of backing out of a deal to sell Bob Marley-branded cannabis products in Canada. Docklight alleges that the move cost it licensing fees, royalties, and eventually the Bob Marley license itself, according to an amended complaint filed on May 3. Read more here.
Last-Minute Lifeline for New York Cannabis Supply Chain
The New York Legislature and Gov. Kathy Hochul swooped in at the last minute – quite literally – to give the state’s nascent marijuana supply chain a critical deadline extension. Lawmakers approved the bills late Wednesday, which pushes back a midnight expiration for conditional processor and distribution permits by a year, to June 1, 2024, and Gov. Kathy Hochul signed both bills into law early on Thursday. Read more here.
Illinois Cannabis Legislation Fizzles at Finish Line
Hopes for wide-ranging legislation that would fix a bunch of nagging issues in the Illinois marijuana industry fizzled at the last minute. Instead, the state General Assembly made just a few changes. Read more here.
SNDL Hints at Plans for Skymint
SNDL (Nasdaq: SNDL) has deployed capital into a portfolio of six cannabis-related investments of approximately $579.9 million, including $535.9 million for the SunStream joint venture. Now, two of those properties, Skymint in Michigan and Florida-based Parallel Cannabis, are both experiencing extreme financial stress. Read more here.
In Other News
The Lexi Hotel
The Lexi Hotel, which has billed itself as the first “cannabis-inclusive property” in Las Vegas, is set to open its doors on Friday, June 2. The small, 65-room boutique hotel will allow any guests staying on its fourth floor to consume cannabis inside their rooms. Read more here.
Smart & Safe Florida
Florida’s Department of State reported that the proposed ballot measure to legalize recreational marijuana gathered enough signatures to put it on the ballot in 2024. The constitutional amendment, proposed by Smart & Safe Florida, gathered 967,528 valid signatures — more than 70,000 above the requirement to reach the ballot. Read more here.
Debra BorchardtJune 1, 2023
What does the troubled investment mean for SNDL's future in U.S. cannabis?
StaffMay 31, 2023The Daily Hit is a recap of the top financial news stories for May 31, 2023.
On The Site
Cronos Exiting U.S. Hemp CBD Market
Toronto-based global cannabis company Cronos Group Inc. (Nasdaq: CRON) (TSX: CRON) on Wednesday announced its departure from the United States hemp CBD industry, saying it plans to refocus on the Canadian marijuana market until cannabis is federally legalized in the U.S. Read more here.
Skymint to Hit Auction Block with Lender as Stalking Horse Bidder
The assets of embattled Michigan marijuana cultivator and retailer Skymint will be auctioned off. After three months under a court-appointed receiver, saving the company under current leadership appears to be not possible, according to a motion filed by Gene Kohut. Read more here.
MedMen Trims Losses, But Still a Going Concern
Despite its financially precarious position, MedMen Enterprises Inc. (OTCQX: MMNFF) (CSE: MMEN) trimmed its annual losses and opened another store in Illinois this year. Still, the California-based multistate operator is facing major headwinds and remains a going concern, according to its latest quarterly earnings report for its fiscal 2023 third quarter. Read more here.
Other Earnings:
• Cansortium Sees Revenue Uptick as Fluent Expansion Continues
• Red White & Bloom Makes Headway in U.S. Cannabis Market
• StateHouse Revenues Rise As Debt Bill Looms
Green Cross Colorado Founder Sues CEO, Alleges Embezzlement, Tax Fraud
The founder of a successful cannabis beverage company in Denver filed suit against his business’s CEO and two associates, alleging that the executive and his collaborators stole millions from the company over a years-long span. Daniel Griffin, the founder of Green Cross Colorado LLC, filed a lengthy 12-count lawsuit in Denver District Court. Read more here.
Minnesota Expands Medical Market, Legalizes Adult Use
The long-awaited bill legalizing recreational marijuana in Minnesota has been signed into law by Gov. Tim Walz, following approval from the state Senate in a narrow 34-32 vote. Minnesota becomes the 23rd state in the U.S. to legalize adult-use cannabis. Read more here.
In Other News
Zelira Therapeutics
Shares in Perth-based medical cannabinoid developer Zelira Therapeutics’ (ASX: ZLD) rocketed by 256% today after the company revealed its diabetic nerve pain drug had delivered what it says are superior results to Lyrica, Pfizer’s global market-leading neurology product. Read more here.
Schwazze
Medicine Man Technologies Inc. (OTCQX: SHWZ) (NEO: SHWZ), which operates as Schwazze, promoted its president, Nirup Krishnamurthy, to the role of chief executive officer. Justin Dye, now former CEO and executive chairman, will continue to lead the board of directors as its nonexecutive chairman. Read more here.
CuraScientific Corp.
California-based CuraScientific Corp. (OTC PINK: CSTF) purchased the microbusiness cannabis license held by Chad Enterprises LLC for $600,000. CuraScientific plans to expand its customer acquisition, delivery routes, and territories with the new license. Read more here.
Dustin WalshMay 31, 2023Receiver: Saving the company under current leadership appears to be not possible.
StaffMay 17, 2023The Daily Hit is a recap of the top financial news stories for May 17, 2023.
On the Site
Curaleaf Q1 Revenue Exceeds Expectations
Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) reported net revenue of $336.5 million for the first quarter of 2023, up $40.5 million from the first quarter of 2022. This beat revenue expectations by nearly $5 million. Read more here.
Pelorus Breaks Credit Grass Ceiling with A Rated Notes
Cannabis debt typically has been given low ratings, if receiving a rating at all. This week, cannabis commercial real estate lender Pelorus Capital Group announced that notes issued by its private mortgage real estate investment trust subsidiary, the Pelorus Fund REIT, received an A rating by Egan-Jones Rating Company – the highest rating issued to date in the cannabis industry. Read more here.
TILT Holdings Secures $4.5M to Restructure Capital Amid Payment Challenges
Tilt Holdings Inc. (NEO: TILT) (OTCQX: TLLTF) closed an offering of up to $4.5 million in senior secured promissory notes, referred to as a bridge loan, on Monday. The company says the move allows it to access up to $4 million in funding from its existing note holders. Read more here.
Hemp Naturals Agrees to $50k Settlement with SEC for Securities Violations
According to the agreement, Hemp Naturals repeatedly failed to file required forms with the SEC between July 8, 2020, and July 6, 2021. During that time, the company sold 534 million shares and raised $2.4 million despite repeatedly lowering its stock price, in contravention with SEC rules. Read more here.
Troubled Skymint Loses Infamous Sports Complex in Michigan
Embattled Skymint invested heavily last year to retrofit the former Summit Sports and Ice Complex near Lansing into a massive marijuana grow and processing operation. The expansion was supposed to double its marijuana production capabilities, but Skymint never completed the build-out. Read more here.
In Other News
Oregon
Oregon Gov. Tina Kotek found out in April that Secretary of State Shemia Fagan had a consulting contract in connection with a cannabis business, according to Kotek’s spokesperson Elisabeth Shepard. Read more here.
Rhode Island
Gov. Dan McKee on Wednesday named his three nominees to a new Cannabis Control Commission, which will have the authority to regulate the state’s marijuana industry moving forward, including issuing new licenses for additional recreational pot stores. The issuance of up to 33 new license has been stalled by delays in the appointments. Read more here.
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