It’s time for your Daily Hit of cannabis financial news for June 22, 2021.
On The Site
Governor Ned Lamont (D) signed legislation today, Senate Bill 1201, legalizing the adult use of marijuana and regulating its commercial production and sale. Under the law, which takes effect on July 1, adults ages 21 and older may legally possess up to 1.5 ounces of cannabis flowers or an equivalent amount of cannabis concentrates in public, and up to five ounces of marijuana in their private residence. Beginning in October of this year, state-registered medical cannabis patients will be permitted to home-cultivate up to three mature and three immature marijuana plants. Non-participants in the state’s medical cannabis program must wait until 2023 until they are legally permitted to home-cultivate marijuana for their own personal use without any penalties.
Marijuana flowers available at retail facilities will be capped at 30 percent THC, while concentrated products (except vape cartridges) will be capped at 60 percent THC. Retail sales of cannabis and cannabis products are not anticipated to begin until some time next year.
According to a report on Reuters, a Manhattan federal judge sentenced two former consultants for cannabis delivery company Eaze Technologies Inc to prison last Friday for their roles in a scheme to dupe U.S. banks into processing credit card transactions for cannabis purchases. The fraudulent transactions totaled $100 million in payments to the online cannabis marketplace.
U.S. District Judge Jed Rakoff sentenced Hamid (Ray) Akhavan, 43, to two and a half years in prison and Ruben Weigand to 15 months in prison. The story noted that the jury convicted the two men on one count each of conspiracy to commit bank fraud in March. Despite being sent to prison, it could have been much worse. The Judge criticized the federal sentencing guidelines, which could have resulted in life in prison for Akhavan and up to 24 years for Weigand.
Sunniva Inc. (CSE:SNN) (OTC-PINK:SNNVF) announced that it has been discharged and released from its CCAA proceedings and Alvarez & Marsal Inc. is now discharged and released from its duties in relation to the Petitioners. As of June 18, 2021, the company and its Canadian subsidiaries implemented the Amended and Consolidated Plan of Compromise and Arrangement that dated back to January 14, 2021, which included the issuance of an aggregate of 755,814,804 common shares of Sunniva.
All of the shares of Sunniva, including the Plan Shares, though are subject to the cease trade order issued on June 22, 2020, for failure to file certain financial documents. Sunniva said in a statement that work on the audits for the years 2019 and 2020 was ahead of the anticipated schedule. “A significant portion of the 2019 fieldwork and testing has been completed and a draft financial statement package is under internal review. Some work on the 2020 audit has been done in tandem with 2019 to gain efficiency. The Company anticipates completing both audits by the end of July.”
Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) announced that it is changing its name to Audacious Brands. The company’s ticker symbol will remain AUSA on the CSE and AUSAF on the OTC. The company said it will consolidate its brands under the new Audacious banner and intends to launch additional product lines under the new name.
In Other News
Michigan-based Lume Cannabis Co. announced an innovative partnership with 313 Presents, Detroit’s premier live entertainment company. Through this deal, Lume will become the exclusive cannabis brand of 313 Presents’ DTE Energy Music Theatre in Clarkston, Michigan. The announcement represents the very first integrated, activated cannabis partnership in 313 Presents’ portfolio, which will include marketing opportunities spanning culture, music and entertainment.