It’s time for your Daily Hit of cannabis financial news for January 25, 2022.
On The Site
The U.S. Securities and Exchange Commission (SEC) scored a big W this week when a California federal judge ordered cannabis investment firm VerdeGroup to pay more than $1 million in civil penalties, disgorgement, and interest. Law360 reported the final judgment was issued on January 20, 2022, and the defendants have 14 days to pay the SEC. In addition to the payments, the judge has permanently banned VerdeGroup, Thomas Gaffney, and Lisa Gordon from the securities industry.
U.S. District Judge Stanley Blumenfeld Jr. has ordered VerdeGroup to pay a civil penalty of $500,000. VerdeGroup, Tommy’s Pizza, Gaffney and his wife Cynthia Gaffney are jointly and severally liable for disgorgement of more than $470,000, including prejudgment interest. Gaffney and Lisa Gordon were also ordered to pay civil penalties of $100,000 and $5,000, respectively.
Nearly every day, another new rule favoring the decriminalization of psychedelics or otherwise prompting favorable treatment of psychedelics is announced. Here’s a roundup of some of the most recent actions in January alone:
– January 19. After facing legal scrutiny for decades, psychedelics including MDMA and psilocybin received a stamp of approval from Health Canada for medical purposes. Canada’s legislation now permits the use of psychedelics beyond palliative care.
House of Saka, Inc., producer of the first and only alcohol-free, award-winning cannabis-infused wines from the iconic Napa Valley appellation, announced today an exclusive partnership with Carbidex LLC Michigan, a family-owned holding entity with companies rooted in the cannabis and facilities management industries, to provide full-service manufacturing, bottling, and distribution. The Michigan market has become incredibly important in the cannabis industry. The Anderson Economic Group found that one in five Michigan residents used cannabis in 2020 – an increase of 75% since 2010. “We estimated that Michigan’s cannabis industry totaled $3.1 billion in 2020. In 2020, retailers reported sales of approximately $1.0 billion. The remainder of cannabis consumed across the state came from non-retail sources, including home cultivation, medical caregivers, and illicit adult-use sales.”
In Other News
Akerna (Nasdaq: KERN) announced the release of its annual Cannabis Industry Year-End Review. This report highlights the state of the ever-changing and emerging cannabis industry. It takes a deep dive into capital markets, investing, new opportunities, data, consumer trends, marketing, eCommerce, and more.
“Despite its challenges, 2021 brought another year of growth in markets, consumers, and spending for the resilient cannabis industry,” said Jessica Billingsley, Akerna Chief Executive Officer. “I knew cannabis would never reach mass legalization and wide consumer adoption until it could be tracked and traced transparently and safely, and I am thrilled that Akerna’s ecosystem of software has provided that supply chain tracking need for our vibrant and growing industry.”