It’s time for your Daily Hit of cannabis financial news for February 18th, 2021.
On the Site
Is Delta-8 THC Legal?
This guest submission explains that yes, delta-8 THC is legal and able to be obtained in the United States. Delta-8 THC seems to lack the intense psychoactive effects of its analog, Delta-9 THC. It gives a mild “high” but has stronger health and wellness benefits. Unlike the regular THC, Delta-8 THC’s benefits far outweigh its side effects, which are minimal at the least.
Tax Court Rules Against Harborside in 280E Case
California-based cannabis company Harborside Inc. (CSE: HBOR), (OTCQX: HBORF) has been fighting the IRS over tax payments related to IRC Section 280E, which
prohibits businesses engaged in the trafficking of controlled substances (including cannabis as specified in Schedule I of the FCSA) from deducting normal business expenses associated with the sale of cannabis.
The company announced that the United States Tax Court ruled in favor of the Commissioner of Internal Revenue with respect to Docket Nos. 12313-15,12353-15, and 15714-18 to disallow all of SJW’s deductions pursuant to I.R.C. sec. 280E for all the years at issue.
Tilt Holdings Forecasts Rising Revenue for Fourth Quarter
TILT Holdings Inc. (OTCQX: TLLTF) reported its preliminary earnings for the fourth quarter ending December 31, 2020, and full-year outlook for 2021 after the market closed on Wednesday. Tilt said that the fourth-quarter revenue is projected to be between $42.2 million and $43.2 million versus last year’s revenue of $40.4 million for the same time period. That figure, however, includes its former subsidiary Blackbird, without that the revenue would be projected to be between $41.3 million and $42.3 million.
MindMed to Buy HealthMode in C$41 Million Deal
Psychedelic medicine biotech company MindMed (OTCQB: MMEDF) will acquire HealthMode, a digital medicine and therapeutics startup that uses Artificial Intelligence (AI)-enabled digital measurement to increase the precision and speed of clinical research and patient monitoring.
MindMed said it will acquire HealthMode through the issuance of 82,508 multiple voting shares of MindMed (equivalent to 8,250,836 subordinate voting shares which, at yesterday’s closing price of CAD $5.13, puts the value of HealthMode at approximately CAD $41,254,180) and the payment of approximately CAD $300,000 in cash.
MD Numbers, Inc: A Cannabis Company Focused on Sustainability & Equity
As part of Green Market Report’s month-long series highlighting Black cannabis owners, we featured MD Numbers; a Black-owned cannabis company with numerous brands under them in various disciplines of cannabis. The co-founders are also siblings, Marie Montmarquet and Allen Hackett have 31 combined years of cannabis experience.
Tilray Delivers Solid Quarter As Revenue Rises 20%
Tilray, Inc. (Nasdaq: TLRY) reported financial results for the full fiscal year and fourth quarter ended December 31, 2020 following the close of the market on Wednesday.
The company said that total revenue increased 20.5% to $56.6 million versus the fourth quarter of 2019.
In Other News
New Jersey Lifts 2019 Medical Marijuana Restriction
A New Jersey appellate court decided to lift the 2019 order that prevented the state from awarding 24 additional medical marijuana licenses.
“The ruling today is a step in the right direction for the state of New Jersey to not only meet the demands of existing patients but to eventually increase supply to meet the demand of the adult-use market,” New Jersey cannabis attorney Rob DiPisa of Cole Schotz wrote in an email to Marijuana Business Daily.