The Daily Hit is a recap of the top financial news stories for July 27, 2023.
On the Site
Mastercard Fallout Means More Pain for Cannabis Industry
When financial titan Mastercard Inc. (NYSE: MA) cut ties with a swath of payment processors that had been aiding marijuana retailers across the country, the news sent shivers down the collective spine of the cannabis industry. Analysts predicted the move would only increase the likelihood of all-cash transactions, thus heightening the chances of more violent robberies. Read more here.
Tilray Leverages CPG Expertise to Build Beyond Cannabis
Against the backdrop of a tumbling sector, Tilray’s fourth-quarter and full-year financial results for 2023 were dynamite. The company reported better-than-expected top-line results across all segments. The adult-use cannabis segment recorded its best revenue generation in nearly eight quarters despite the challenges of price deflation. Read more here.
Michigan Cannabis Companies Wanted a Crackdown on Unlicensed Cannabis – They Got It, and Then Some
After years of little to no enforcement under former Michigan Cannabis Regulatory Agency Executive Director Andrew Brisbo, operators demanded a change. They wanted regulators to root out the illicit market marijuana entering the legal space and cratering prices and to also punish those involved in the schemes. The industry is now crying foul and is urging the agency to slow down fines and apply them more evenly under sustained pricing pressure. Read more here.
Imperial Brands to Retain Cannabis Investment as Auxly Extends Debenture Maturity
Auxly Cannabis Group Inc. (TSX: XLY) (OTCQX: CBWTF) has announced a two-year extension to the maturity date of a $123 million debenture held by its partner, Imperial Brands PLC. The loan, originally due in September 2024, will now mature in September 2026. Read more here.
Cannara Biotech Delivers Solid Quarter as Company Grows
Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) announced its fiscal third quarter 2023 financial and operating results for the third quarter ending May 31, 2023. Cannara Biotech reported revenue of $15.8 million versus last year’s $9.9 million for the same time period. The company also reported net income of $2.9 million versus last year’s net income of $1.4 million in the same time period. Read more here.
In Other News
A B.C. Supreme Court judge has approved the bulk sale of more than 1.2 tonnes of cannabis by a company after the Canada Revenue Agency threatened to destroy it. In a ruling released online this week, the court allowed Tantalus Labs Ltd. to move ahead with a hasty sale of its remaining inventory of cannabis flower. The agency had earlier declined to renew the company’s excise tax license due to financial difficulties. Read more here.
Regulators at the Missouri Department of Health and Senior Services have had trouble holding medical-marijuana businesses accountable for things that went against their rules. But when new cannabis regulations go into effect on Sunday, officials will have that power to hit marijuana facilities with fines, suspend their operations or even revoke their licenses if they host events where unlawful activity occurs. Read more here.