StaffApril 18, 2023
The 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.
