The Daily Hit is a recap of the top cannabis business stories for April 6, 2022.
ON THE SITE
The debt troubles facing Parallel are exposing the risk to other companies. Innovative Industrial Properties (NYSE: IIPR) gets 10% of its revenues from Parallel and Sundial’s (OTC: SNDL) joint venture with SAF Group called Sunstream Bancorp owns some defaulted debt. In March 2021, Sundial Growers Inc. formed a 50/50 joint venture with SAF Opportunities LP, a member of the SAF Group called SunStream Bancorp Inc. The Joint Venture’s first mandate was the formation of a special opportunities fund with commitments from third-party limited partners alongside an initial commitment from Sundial of $100 million. Read more here.
Tilray Brands, Inc. (Nasdaq: TLRY) reported financial results for the third fiscal quarter ending February 28, 2022. Tilray‘s ret revenue increased 23% to $152 million during the third quarter from $124 million in the prior-year quarter. However, it fell sequentially from the second quarter’s revenue of $155 million and slightly missed the revenue estimates by roughly $4.7 million. The increase was driven by a 32% growth in cannabis revenue to $55 million, 64% growth in beverage alcohol revenue to $20 million, and wellness revenue of $15 million. Read more here.
Long after the markets closed on the east coast, The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (OTC: TGODF) delivered its financial results for the fourth quarter ending December 31, 2021, and for the full-year 2021. The Green Organic Dutchman reported revenues rose 46% to $11 million in the quarter over last year’s $3.4 million for the same time period. It was a sequential increase of 27%. Read more here.
Part 3 of Green Market Report’s series on California‘s war on cannabis.
If you were to ask what the main problem facing the largest cannabis market in the country is, there would be one resounding answer – TAXES.
Cannabis taxes on the state and local levels are choking the life out of businesses across the state of California and cultivators, manufacturers, and retailers are looking for relief anywhere. Currently, businesses are subject to a $161 a pound state cultivation tax for flower, then a 15% state excise tax (which is really 27%, but we’ll get into that later), a 10% state sales tax in most areas, not to mention the varying local cultivation, processing, manufacturing, distribution, and retail tax, effectively making the tax rate on the average cannabis purchase about 50%. Read more here.
IN OTHER NEWS
Akerna (Nasdaq: KERN), a cannabis enterprise software company and developer in the global cannabis industry, today announced the following letter from its Chief Executive Officer, Jessica Billingsley, to its shareholders and the investment community. Read more here.
Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF) announced that it will report its financial and operating results for the first quarter ended March 31, 2022 after market close on May 9, 2022. Read more here.
C3 Industries (“C3”), a multi-state, vertically integrated cannabis company with headquarters in Ann Arbor, MI, today announced the appointment of Parks McMillan as vice president of cultivation. Read more here.
NewLake Capital Partners
NewLake Capital Partners, Inc. (OTCQX: NLCP), a leading provider of real estate capital to state-licensed cannabis operators, today is announcing the closing of part-one of a three-part commitment for a cultivation property in Missouri. Read more here.