The Daily Hit is a recap of the top financial news stories for Dec. 12, 2023.
On the Site
Michigan Man Who Sued NY Over Cannabis Licensing Goes After Washington State
A Michigan cannabis entrepreneur on a quest to remove residency requirements from adult-use cannabis programs continues to stay busy in state courts. Kenneth Gay, the owner of Peridot Tree WA Inc., challenged the Washington State Liquor and Cannabis Control Board’s decision to reject his company’s application for a retail license under the state’s social equity program. Read more here.
DEA Places Six Synthetic Cannabinoids in Temporary Schedule 1
The Administrator of the U.S. Drug Enforcement Administration issued a temporary order to schedule six synthetic cannabinoids in schedule I under the Controlled Substances Act. The DEA said the action was based on a finding by the administrator that this was necessary to avoid imminent hazard to public safety. Read more here.
More Chaos as Massachusetts Cannabis Commission Suspends Two
Chaos continues to rain down on the Massachusetts Cannabis Commission, as nonprofit news organization WBUR reported that Acting Executive Director Debbie Hilton-Creek suspended Chief Communications Officer Cedric Sinclair and Director of Human Resources Justin Shrader on Dec. 4. Read more here.
Report: STIIIZY Founder Landlord for Illegal California Dispensaries
The founder of the popular California cannabis brand STIIIZY has been embroiled in the illicit side of the marijuana industry for years, as a landlord to unlicensed dispensaries scattered across the Los Angeles metro area, according to a report in the Los Angeles Times. Read more here.
Agrify Narrows Losses as Turnaround Plan Takes Shape
Agrify Corp. (Nasdaq: AGFY) has reported a fall in operating and net losses for the second quarter of 2023 ending June 30, as part of its ongoing restructuring efforts. The company detailed a significant reduction in losses, with operating loss lowering to $5.3 million from $7.6 million in the previous quarter, and net loss declining to $6.8 million from $10.3 million. Read more here.
First Recreational Marijuana Product Recall Issued in New York
New York marijuana regulators issued the state’s first-ever recreational cannabis product recall on Tuesday, almost a full year after the adult-use market launched on Dec. 29, 2022. The state Office of Cannabis Management said it was recalling a single lot of edibles called “Jenny’s Zee Zee gummies 2:1 THC/CBN,” made by Jenny’s Baked at Home Company LLC, because the lot was not properly tested for consumer safety. Read more here.
Connecticut Cannabis Sales Hit Nearly $26 Million in November
Preliminary data from Connecticut’s Department of Consumer Protection highlighted that the adult-use cannabis market, which launched sales on Jan. 10, recorded more than $15.3 million in sales during the month. In comparison, the medical marijuana sector accounted for more than $10.3 million in sales during the same period. Read more here.
CV Sciences Buys European Vegan Food Company
California-based CV Sciences Inc. (OTCQB: CVSI) has acquired Polish plant-based vegan food company Cultured Foods. CV Sciences said in a statement that the acquisition was structured as an equity purchase, where it will operate Cultured Foods as its wholly owned subsidiary. Read more here.
In Other News
Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) has completed its efforts to comply with all the conditions listed in the conditional listing approval delivered by the Toronto Stock Exchange in connection with the listing of its subordinate voting shares on the exchange. Shares will commence trading on the TSX on Dec. 14 under the ticker symbol CURA. Read more here.
Montgomery County (Alabama) Circuit Court Judge James Anderson denied a petition for a temporary restraining order against the Alabama Medical Cannabis Commission. In the latest legal challenge, Alabama Always LLC claimed that the commission’s method of selecting medical cannabis licensees was unlawful. Read more here.
Adult-use recreational marijuana has been legal in Michigan since voters approved a ballot proposal in the 2018 election, with sales starting in 2019. But more than 1,300 Michigan communities remain opted out. Read more here.