The Daily Hit is a recap of the top financial news stories for Dec. 19, 2023.
On the Site
Missouri Regulators Find 11 Social Equity License Recipients Ineligible
Nearly one-quarter of the 48 social equity marijuana microbusiness permits awarded in October have been deemed ineligible for various reasons, and the 11 applicants – which include permits for nine dispensaries and two wholesalers – are poised to lose those licenses. Read more here.
Organigram Loses Nearly a Quarter Billion in 2023
Toronto-based Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) closed its 2023 fiscal year on Sept. 30 with a C$248.6 million loss, a whopping 1,641% increase from the prior year when the company posted a C$14.2 million loss. The loss contrasted with the company’s C$161.6 million in net revenue for the fiscal year, which was up 11% year-over-year from C$145.8 million. Read more here.
Grown Rogue Back to the Red in Q4 with $2.1M Loss
Oregon-based Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) dipped back into the red as of its fiscal fourth quarter this year, when the company reported a consolidated $2.1 million loss for the three months ended Oct. 31. The losses end a profitable streak for the second-tier multistate operator. Read more here.
Dagmar Cannabis Opens in Soho
Dagmar Cannabis is the first social justice applicant to open a dispensary in New York since the judge lifted the freeze on the adult-use cannabis program. Read more here.
In Other News
Canadian Cannabis Insolvency
Financially distressed cannabis companies continued to seek refuge in Canadian insolvency law in 2023, although such insolvency filings under one statute declined from 2022. This year’s cannabis insolvencies included big names such as retailer Fire & Flower and producer Aleafia Health, highlighting the industrywide struggle to keep operating in the face of low marijuana prices, high taxes and trouble accessing new funding. Read more here.
Chicago-based Cresco Labs is suing two Massachusetts dispensaries over a lack of payment for goods produced from Cresco’s Leicester-based production and cultivation facility. The lawsuit, filed in Worcester County Superior Court on Monday, targets Terps – Attleboro and Terps – Wellfleet, two dispensaries that share ownership. Cresco alleges that the two retail stores purchased $88,662 worth of product facility between October 2022 and March 2023 but failed to make payment. Read more here.