Variscite NY One Archives - Green Market Report

StaffFebruary 21, 2023
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BusinessDaily Hit

Daily Hit: February 21, 2023

4min00

The Daily Hit is a recap of the top financial news stories for February 21, 2023.

On the Site

OCM Claims Variscite Application Score Too Low for a License

New York’s Office of Cannabis Management took another swing at the case filed by Variscite NY, which has stalled the adult-use licensing program in three state regions. The agency filed a motion last week with the Appeals Court for the Second Circuit asking it to block the current case, arguing that Variscite’s New York license application would likely not be approved based on its low score. Read more here.

MedMen Looks to Sell Assets in Arizona, Illinois & Nevada

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) hired ATB Capital Markets Inc. to help the company review and sell one or more of its noncore assets in Arizona, Illinois, and Nevada. ATB will help MedMen determine which assets to sell to boost liquidity and maximize shareholder value with an asset-light model. Read more here.

MariMed, Schwazze Active in Acquisitions

MariMed, Inc. (CSE: MRMD) (OTCQX: MRMD) announced it is buying the operating assets of troubled medical dispensary Ermont, Inc. located in Quincy, Massachusetts. Meanwhile, Schwazze (NEO: SHWZ) (OTCQX: SHWZ) announced it was buying Cannabis Care Wellness Centers, LLC and Green Medicals Wellness Center #5, LLC also known as Smokey’s. Read more here.

Unrivaled Brands Finds Growth Under Leadership of Cookies CFO

Unrivaled Brands Inc. (OTCQB: UNRV) saw 10% growth in sales through 2022 under a new batch of executives trying to turn the once-scaling company around. Sales growth appears to be one of the fewer upbeat aspects of the company’s journey lately, after a turbulent year of lawsuits, C-suite shuffles, and shareholder angst fueled by market woes. Read more here.

Canopy Growth Dilutes Shares Again in $150 Million Public Offering

Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) entered into an agreement with an institutional investor for a convertible debt issuance worth $150 million, which provides access to needed capital but further dilutes shares for existing shareholders. Read more here.

In Other News

The Cannabis Place

The Cannabis Place, a firm licensed to open a recreational marijuana dispensary in Queens, New York, plans to make delivering to Nassau County a major part of its business model. After winning a license last month, Suffolk County resident Osbert Orduña and his partners found a “phenomenal” location in the western part of the borough that’s a block away from the subway and has a garage bay for delivery drivers, according to Orduña. Read more here.

Canonic

Israeli cannabis developer Canonic on Tuesday launched a series of hybrid cannabis products produced with the aid of artificial intelligence. The strains were bred selectively to contain higher levels of THC and particular terpene characteristics with the assistance of the tech engine “GeneRator AI” developed by Evogene, of which Canonic is a subsidiary. Read more here.

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Jenel Stelton-HoltmeierNovember 10, 2022
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BusinessLegal

New York Social Equity Program Ordered to Not Issue Licenses

3min00

A district judge is the New York has issued a preliminary injunction against the New York Office of Cannabis Management, preventing it from issuing licenses in several localities.

Variscite NY One, an LLC owned by Kenneth Gay, requested the injunction as it challenges the state’s decision to award its first cannabis licenses to New Yorkers who have been incarcerated or arrested for the plant.

This injunction prevents the OCM from issuing licenses to applicants under the conditional adult-use retail dispensary (CAURD) program for the following geographic areas in the state:

  • Finger Lakes
  • Central New York
  • Western New York
  • Mid-Hudson
  • Brooklyn

According to the court filing (attached below), Variscite NY One requested the injunction in order to “preserve the status quo,” as the program had yet to issue any of the CAURD licenses. The company argued that New York’s social equity program runs afoul of the dormant commerce clause, in part because it is not narrowly tailored enough to serve a “legitimate local purpose.”

In issuing his decision, U.S. District Judge Gary Sharpe wrote that the OCM “did not even attempt” to show that its restrictions advanced such a local purpose.

In addition, the court agreed with Variscite that its exclusion from the initial process could cause “irreparable harm” by granting an early advantage to other applicants.

The New York adult-use cannabis program specifically wanted to address the social equity aspect of licensing and chose to award the first licenses to what it calls “justice applicants.” These applicants can be individuals who were convicted of or who had a parent, legal guardian, child, spouse, or dependent convicted of a “marihuana-related” offense in New York state prior to March 2021.

This is a developing story and will be updated as new information becomes available.

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