It’s time for your Daily Hit of cannabis financial news for February 7, 2022.
On The Site
Data from a January Headset report shows that female cannabis consumers are on a continued ascendant in the U.S., increasing 55% from Q1 2020 to Q4 2021. This growing consumer demographic is even more robust in Canada, where both Gen Z and Millennial females posted even higher sales than in the United States. In fact, female Canadian consumers contributed to 36.7% of cannabis spending in Q4 2021– 4.1% higher than in the U.S. Consumption among males has also grown, albeit at a smaller percentage, while the female market share has increased notably over the past two years. This reflects that the statistic that only a third of total cannabis sales are currently to women is changing at a brisk rate.
Last week Innovative Industrial Properties, Inc. (NYSE: IIPR) announced that its operating partnership, IIP Operating Partnership, LP had launched a $300 million offering, but on Friday after the market closed, the company quietly pulled it. The company’s filing stated that it “determined not to proceed with its proposed public offering of $300 million of senior notes due 2027 previously announced on February 1, 2022, due to market conditions.” IIP stock has tumbled from approximately $286 in November 2021 to lately sell at $193.
Online cannabis company Leafly Holdings Inc. and Merida Merger Corp. I (NASDAQ: MCMJ), a SPAC (special purpose acquisition company) sponsored by Merida Capital Holdings, closed their previously announced business combination on Friday. In connection with the closing, Merida has adopted the Leafly name, and Leafly’s common stock will begin trading on the NASDAQ Stock Market on February 7, 2022, under the ticker symbol “LFLY.”
It seems Pennsylvania’s medical marijuana program has pulled flavored vapes. Last week, On February 2, 2022, the Pennsylvania Department of Health (DOH) posted a list of known additives that it says were not approved by the FDA (Food & Drug Administration) for inhalation. Then on Friday February 4, 2022, the Pennsylvania DOH issued a withdrawal of these products by many of the leading cannabis companies in the state. The products mostly seem to include flavors like citrus, candies and cookies. The DOH sent a letter to patients and caregivers on February 4th saying that some of the additives were approved by the FDA in non-inhalable products, but were not approved for inhalable products. They issued a mandatory recall for all the products
In Other News
The Parent Co.
TPCO Holding Corp. (OTCQX: GRAMF)announced that Dennis O’Malley, the company’s Chief Operating Officer has elected to step down in the spring of 2022. To ensure a smooth transition, Mr. O’Malley will remain with the company until March 15th, at which time Troy Datcher, Chief Executive Officer of the company is expected to assume his duties and responsibilities.
Aleafia Health Inc. (OTCQX: ALEAF) announced that CEO Geoffrey Benic will leave the Company, effective February 7, 2022. To succeed Benic, the Board named Tricia Symmes, previously the company’s Chief Commercial Officer (CCO), as the company’s new CEO. Symmes became Aleafia Health’s CCO in August 2020 and led the move into the branded recreation market, where the company recently entered the top 10 in the key market categories.