The Daily Hit is a recap of the top financial news stories for Aug. 2, 2023.
On The Site
Unlicensed Cannabis Sales Overrun State’s Legal Program, Strangling Tax Revenue
Legal cannabis sales and tax revenues in New York are at a fraction thus far of what was originally projected, due in large part to the thriving unlicensed market, which one attorney estimated was upwards of 36,000 businesses statewide. Read more here.
MariMed Ends Q2 in the Red Despite Increasing Revenues
Massachusetts-based MariMed Inc. (CSE: MRMD) (OTCQX: MRMD) posted a $900,000 loss for its second quarter of the year, despite increasing revenues year-over-year by $3.5 million, the company reported Wednesday. Read more here.
Oklahoma Supreme Court to Decide Medical Marijuana Permit Fee Case
The Oklahoma Supreme Court this week heard arguments on a lawsuit filed last month by a coalition of cannabis companies who argue that a large business fee increase, which went into effect in June, is illegal because it’s tantamount to a tax hike. Read more here.
New Mexico Asks Court to Halt Sales at Rulebreaking Dispensary
New Mexico cannabis officials have asked a district court to halt sales at a licensed marijuana shop they say has been illegally selling out-of-state marijuana and manufacturing its own products without proper permits. Read more here.
Bill Reintroduced to Prep Federal Government for Marijuana Legalization
In another sign that some in Washington, D.C. are thinking ahead to when the cannabis industry becomes federally legal, Democratic U.S. Sen. John Hickenlooper of Colorado just last week reintroduced a bill designed to get the federal bureaucracy ready to adjust properly for when legalization occurs. Read more here.
Hawthorne’s Sales Slump Drags Scotts Miracle-Gro’s Q3 Profits Down
Lawn and garden products maker Scotts Miracle-Gro Co. (NYSE: SMG) reported lower-than-expected third quarter earnings ending July 1, 2023, mainly due to a sharp decline in its hydroponic business segment, Hawthorne. Read more here.
Turning Point Nets $9.9 Million in Q2 Revenue Beat
Smoking accessories dealer Turning Point Brands Inc. (NYSE: TPB) saw better-than-expected second-quarter financial results ending June 30, 2023, buoyed by rising legal consumption as more state markets open. Read more here.
California Cannabis Farmers Hoping Supreme Court Will Hear Corruption Cases
A small cadre of cannabis farmers from the heart of California’s Emerald Triangle, who have been trying for years to expose local corruption through court cases, are now placing their last hopes in the U.S. Supreme Court via a petition that was filed on July 12 and another that their attorney said should be filed by Friday this week. Read more here.
In Other News
While many other localities around Minnesota are busy banning cannabis commerce or installing moratoriums on licensing, Minneapolis has taken the opposite approach and announced a “permissive” policy for marijuana retailers. Read more here.
There are now 26 social equity licenses available in Arizona, licenses aimed at people from those communities, which are available by lottery. But a new investigation from the Arizona Center for Investigative Reporting shows many of those licenses are now owned by corporate dispensaries instead. Read more here.
New York City is now ranked as the top city in the world when it comes to marijuana consumption, according to a recent study. Read more here.