The Daily Hit is a recap of the top financial news stories for January 31, 2023.
On the Site
California Takes Baby Step Toward Interstate Cannabis Commerce
The California Department of Cannabis Control’s executive director, Nicole Elliott, and general counsel, Matthew Lee, sent the eight-page letter to Attorney General Rob Bonta, asking him to issue a written opinion as to whether shipping cannabis products over state lines would run afoul of federal law, or if the state was on firm legal ground under the U.S. Constitution. Read more here.
Washington D.C. Mayor Signs Massive Medical Marijuana Overhaul Bill
Washington D.C. Mayor Muriel Bowser on Monday signed into law the Medical Cannabis Amendment Act of 2021, which for all practical purposes will establish a new adult-use cannabis market, without any license caps or restrictions on specific medical ailments. Read more here.
D.C. Cannabis Delivery Service Owner Pleads Guilty to Laundering $3.5 Million
CEO Connor Pennington, 39, pleaded guilty to conspiracy to commit money laundering after he directed and green lit a scheme in which he and other business associates within his company, JointVentures LLC., deposited cash in denominations less than $10,000 into several bank accounts they operated. Read more here.
Village Farms Raises $25 Million in Tight Capital Markets
Village Farms International Inc. (Nasdaq: VFF) completed its previously announced registered direct offering with certain institutional investors for the purchase and sale of an aggregate of 18,350,000 common shares at $1.35 per share, together with accompanying warrants to purchase up to 18,350,000 common shares, which have an exercise price of $1.65 per share. Read more here.
High Tide Revenues Up Big But Company Still Lost C$52M in Q4
Canadian cannabis company High Tide (NASDAQ: HITI) (TSXV: HITI) saw both its revenues and its losses balloon in its final fiscal quarter of 2022, which ended on Halloween. Though revenues shot up for the year as a whole by 97% to C$356.9 million, High Tide still lost $52.5 million in the fourth quarter alone, and posted a C$70.8 million loss for the fiscal year. Read more here.
In Other News
Nextleaf Solutions Ltd.
Vancouver, British Columbia-based Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) reported total revenue of $5.4 million for the fiscal year ended Sept. 30, 2022, an increase over 52% from the year prior. Cost of sales of $3.7 million decreased of approximately 12% from the year prior. A significant portion of cost of sales is related to excess capacity, as such, as revenue scales with increased distribution, gross profit is expected to increase exponentially. Read more here.
Year one of Vermont’s legalized market, which opened in October, was highlighted by a high demand and limited supply, which officials say they expected. That’s partly because the first licenses weren’t available until the middle of the growing season. State officials now expect a ramping up of crop yields for 2023. Read more here.
A GOP congressman has refiled a bill to move marijuana from Schedule I to the less restrictive Schedule III under federal law. Rep. Greg Steube (R-FL) introduced the proposal on Friday. This is the third session in a row that he’s pushed for the modest reform, titled the “Marijuana 1-to-3 Act.” Read more here.