The Daily Hit is a recap of the day’s top business stories for the cannabis industry for April 4, 2022.
On The Site
This article is part of an ongoing series from the Green Market Report covering some of the biggest challenges facing the California cannabis market in 2022.
Part 1 – Burdensome Legislation
The first quarter of 2022 has been busy with newly proposed cannabis bills in California, with more than two dozen bills submitted in the California State Assembly and Senate. Lawmakers introduced bills at a dizzying rate addressing a range of issues from insurance (AB-2568) and CEQA (SB-1148) to clearing criminal convictions (AB-1706) and re-felonizing homegrown cannabis (AB-1725).
In the haystack is a needle of a bill, SB-1097, introduced on February 16, 2022, by Senator Pan. SB-1097, which would impose new health warning labeling rules for cannabis packaging and advertising, could drastically change the cannabis brand landscape. Read more here.
New Mexico is now the 18th state to legalize the sale of adult-use cannabis and those sales began last Friday. According to television station KOAT, as of noon on Sunday, recreational sales in the state had reached $3 million. Hundreds of residents had lined up at dispensaries to purchase legal recreational cannabis. KOAT said that according to state officials, 49,552 transactions had occurred totaling roughly $3,092,712. Democratic governor, Michelle Lujan Grisham was reportedly at a dispensary for the occasion but did not make a purchase. Instead, she was seen speaking with customers. Read more here.
Israeli-based cannabis company InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) also known as Canndoc reported its estimated financial and operating results for the fourth quarter and year ending December 31, 2021. InterCure reported revenue of $33 million (NIS 80 million), higher than preliminary results and three times greater than the fourth quarter of 2020 and representing sequential growth of 29%. The estimated net income was $1 million (NIS 3 million) for 2021. Read more here.
Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF), a multi-state cannabis company with operations and assets in Oregon and Michigan, reports fiscal first-quarter 2022 results for the three months ending January 31, 2022. Grown Rogue reported first-quarter revenue of $3.73 million versus $1.05 million for the same time period in 2021, an increase of 255%. The net income for the quarter was $155,441. Read more here.
It’s a well-accepted anecdotal fact that cannabis and music go together. From the jazz clubs to the headbangers ball to underground hip hop shows and beyond, where there’s music playing, pot’s often being consumed. That long-lasting bond has recently come in handy for brands looking to connect with legal consumers. Federal regulations prohibit cannabis from online ads, forcing marketers and brands to ramp up creativity. In recent years, cannabis brands have become increasingly present at music festivals and concerts through sponsorships, activations and other consumer-facing endeavors. Read more here.
In Other News
Stem Holdings, Inc. (OTCQX: STMH) (CSE: STEM) announced the appointment of Co-Founder, Matthew Cohen, as Chief Executive Officer and Chief Financial Officer effective immediately. The company is looking to sell its assets outside of Oregon and California, as well as a, restructure of expenses. Read more here.
Standard Wellness Maryland, a MBE/DBE/CBE company, made history on Friday, April 1, 2022, when it became the first cannabis company with a Black and Latino majority owner to win a cultivation license in the state of Maryland. Christina Betancourt Johnson, CEO of Standard Wellness Maryland (SWM) is also the first Afro-Latina to run a licensed cultivation company in the United States. The historic licensure of Standard Wellness Maryland is the culmination of a hard-fought battle in a limited license state. In response to calls of bias and inequity in the application process and a lengthy appeal, the Maryland Medical Cannabis Commission recently granted a handful of minority-owned businesses cultivation and processing licenses. Standard Wellness Maryland is one of its newest license holders. Read more here.