The Daily Hit is a recap of the top cannabis business stories for June 16, 2022.
ON THE SITE
IIPR Picks up Texas Property, Faces Lawsuit
Texas Original Holdings, LLC is the latest cannabis company to sell its property to Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) and then enter into a long-term lease. The purchase price for the property was approximately $12.0 million (excluding transaction costs), which was derived from costs Texas Original incurred to acquire the 25 acres of land and develop the property through the date of closing. IIP said that at the time of closing, the majority of project site work had been completed and two of the four buildings have been dried in with interior finish out under construction. Read more here.
Vapes Business is Back in Pennsylvania
Cannabis companies are cheering a court ruling that will allow the sale of vape products in the state again. Yesterday a Commonwealth Court judge ruled that Pennsylvania medical marijuana companies could resume selling vapes that were taken off the shelves in February in a controversial recall. Earlier this year, the state regulators published a list of over 500 vape products they deemed could not be sold because they did not meet FDA requirements. However, products included in the recall had previously been approved by the state Department of Health for more than three years and the recall specifically focused on medical marijuana vaporization products that contained terpene additives. Read more here.
Concentrates Market Declines in U.S., Grows in Canada
Concentrates, like wax, shatter or resin products are more popular in mature cannabis markets. As prices have dropped and familiarity with the product grows, this niche product is slowly finding its place on cannabis shelves and in consumers’ baskets. Headset recently did a deep dive into a new report titled, “Cannabis Concentrates” to see what was happening in the concentrate market and found big differences between Canadian consumers and U.S. consumers. There were also differences in market share in established markets versus newer markets. Read more here.
Is Medicalizing Psychedelics a Step in the Right Direction?
One of Hollywood director Adrian Lyne’s most popular movies (he was the guy who directed “Fatal Vision”), was “Jacob’s Ladder,” a trippy pseudo-horror movie that was based on an experiment with a strong hallucinogenic 100 times more powerful than LSD that the Army was allegedly testing on unsuspecting U.S. Army soldiers in Vietnam. Read more here.
IN OTHER NEWS
The Valens Company Inc.
The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS), a manufacturer of branded cannabis products, announced yesterday that on June 13, 2022, it received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC indicating that the company is not in compliance with the minimum bid price requirement of US$1.00 per share under the Nasdaq Listing Rules. Based on the closing bid price of the Company’s common shares for the last 30 consecutive business days, the Company has failed to meet the Minimum Bid Requirement set forth in Listing Rule 5550(a)(2) during that period. Read more here.
New Leaf Ventures Inc., Stash House
New Leaf Ventures Inc. (CSE: NLV) (OTC: NLVVF), a management and investment organization dedicated to evaluating, investing, and accelerating advanced stage operations in the North American Cannabis sector, wishes to advise that its wholly-owned subsidiary, New Leaf USA, Inc. is announced it has entered into an LOI with Stash House, a nationally recognized manufacturing, technology, and logistics company. Read more here.
Rubicon Organics Inc.
Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF), a licensed producer focused on cultivating and selling organic certified and premium cannabis, is announced that, subject to TSX Venture Exchange approval, the Company has agreed to extend the maturity date of a previously announced US$8 million principal amount secured debenture to Green Island Investments Ltd. by approximately 18 months, from June 29, 2023, to December 31, 2024. Read more here.
Sweet Leaf Madison Capital, Driven Grown
Sweet Leaf Madison Capital, provider of tailored, non-dilutive capital solutions for the cannabis industry, today announced the closing of a first mortgage loan for Driven Grow, the Michigan-based cannabis cultivation, extraction, and packaging company. The transaction included a refinancing of existing indebtedness and an increase in their current senior mortgage financing to partially fund the development of their property located in Frederic Township, Michigan. Read more here. Read more here.
Legal Cannabis in Thailand
Thailand made headlines last week when it became the first country in Asia to decriminalize marijuana, making it legal to grow and sell or use for medicinal reasons. Thai Health Minister Anutin Charnvirakul expects legal cannabis production to boost the economy, but warned that recreational cannabis use remains illegal. Cannabis decriminalization in Thailand opens up a new market for cannabis companies like Flora Growth Corp. (NASDAQ: FLGC), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX:OGI), Cronos Group (NASDAQ: CRON) (TSX: CRON), Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC), and Zynerba Pharmaceuticals (NASDAQ: ZYNE). Read more here.