The Daily Hit is a recap of cannabis business news for Dec. 8, 2022.
ON THE SITE
New York Appeals Cannabis Licensing Injunction to Second Circuit
New York cannabis regulators are taking a licensing fight to the next level – literally. On Thursday, Attorney General Letitia James filed a notice to request that the Second Circuit Court of Appeals throw out an injunction issued by a federal judge that brought retail marijuana licensing to a halt in five of the state’s regions. Read more here.
New York Regulators Choose Harlem for First Recreational Dispensary Site
The Dormitory Authority of the State of New York (DASNY) revealed the news during a meeting on Monday, when agency CEO Reuben McDaniel III said the office had signed its first lease for an adult-use marijuana store at 248 W. 125th St. Read more here.
Stiiizy Accused of Inflating THC Potency, Misleading Marketing
Counsel representing “millions” of former customers who purchased cannabis products with inaccurate THC-content labels filed the class action lawsuit against Ironworks Collective Inc. and Stiiizy LLC, saying that the companies overcharged consumers by illegally selling products whose THC content was represented as substantially higher than it actually was. Read more here.
Presidential Cannabis Accused of False Advertising on THC Claims
Another cannabis company is accused of overinflating the amount of THC in its cannabis products. The same law firm that filed the allegations against Stiiizy, Dovel & Luner, is also accusing VO Leasing Corp., which makes, sells, distributes, and markets the “Presidential” brand. Read more here.
Brittney Griner Gets Released from Russian Prison
Several news outlets reported that professional basketball player Brittney Griner was released from a Russian prison as part of a prisoner swap. President Joe Biden announced on Twitter that he had spoken to Griner and that she was safe and on her way home. Read more here.
IN OTHER NEWS
The Flowr Corp.
The Flowr Canada Holdings ULC , a subsidiary of The Flowr Corp., has entered into a binding agreement with Avant Brands K1 Inc, formerly, 1000343100 Ontario Inc., pursuant to which Avant will acquire all of the shares of The Flowr Group (Okanagan) Inc. and certain other assets of the company, comprising substantially all of the assets of the company, for total consideration of $5,115,000 plus the amount of the closing DIP loan and the assumed liabilities. Read more here.
Cannabis Global Inc.
Cannabis Global, Inc. (OTC: CBGL), a licensed Los Angeles-based manufacturer and distributor in the cannabis sector, announced the successful conclusion of debt settlement negotiations with two debtholders resulting in the elimination of approximately $813,000 of long-term debt from the company’s balance sheet. Read more here.
Jushi Holdings Inc.
Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multistate cannabis operator, closed its previously announced private offering of approximately $69 million aggregate principal amount of its 12% second lien notes and detached warrants to purchase up to approximately 16 million of the company’s subordinate voting shares at an exercise price of $2.086. The company used the gross proceeds from the offering together with approximately $9 million of cash on hand to repurchase and redeem all of its outstanding existing 10% senior secured notes due January 2023. Read more here.