It’s time for your Daily Hit of cannabis financial news for December 17, 2018.
On The Site
New York Legalization
New York State Governor Andrew Cuomo presented his 2019 agenda on Monday morning to the New York Bar Association and it included his plan to legalize adult use cannabis. “Let’s legalize the adult use of recreational marijuana once and for all,” said Governor Cuomo.
During the midterm elections, the New York State government shifted to a Democratic control and it was expected that the new lawmakers would fully legalize cannabis. There have been estimates that legalizing cannabis could bring in an additional $1.3 billion in annual tax revenues with $336 million for New York City alone.
Tilray, Inc. (NASDAQ: TLRY ) has signed a binding letter of intent (LOI) to purchase hemp-derived CBD isolate from LiveWell Canada Inc. (CSE: LVWL), which will be sourced from the United States and Canada. Hemp CBD is estimated to be a $22 billion market in the U.S. The product will be used for distribution of Tilray-owned wellness and medical products across North America.
LiveWell will supply Tilray with a minimum of 150 kilograms per month of wholesale CBD isolate cultivated and processed from hemp commencing in February 2019, through to July 2019. The amount then increases to a minimum of 300 kg/month for the remainder of the contract, until December 2019. Tilray has the option to increase the amount of CBD supply purchased to 500 kg/month, and there is an additional 12-month renewable option.
In Other News
A Reno, Nevada woman is suing Terra Tech (TRTC) and claiming fraud. Loeb Hegerich became a co-owner of a Blum dispensary in midtown Reno. Loeb claims to have contributed $633,156, and Terra Tech has only contributed $513,706, which was as much as they had originally agreed to invest. Loeb also claims that Terra Tech’s financials weren’t audited as claimed and that funds were commingled with other joint ventures. In addition, there were numerous other claims about financial misdeeds. Loeb said she hasn’t received any money from the investment.
The lawsuit describes various financial mishaps by CEO Derek Peterson and claims that the CFO Michael James has been involved in three companies that resulted in total shareholder wipeouts. The lawsuit also detail numerous bankruptcies by Terra Tech executives. Loeb also claims that Terra Tech has tried to oust her from the company.
Terra Tech issued a statement to News 4 in Reno saying, “We are aware of the allegations made by Ms. Loeb-Hegerich. Terra Tech strongly denies these allegations. We remind the public that the allegations in her complaint are just that – allegations by a business partner which have not been proven. We maintain that, after a full vetting of relevant facts, Terra Tech will by fully vindicated.
The New Jersey Department of Health have selected six businesses to apply for new medical marijuana permits. Two were chosen for three portions of the state to make sure patients had access.