The Daily Hit is a recap of cannabis business news for Nov. 23, 2022.
In the wee hours of the morning StateHouse Holdings Inc. (CSE: STHZ) (OTCQX: STHZF) released its financial results for the third quarter ending September 30, 2022, and provided additional business updates. Statehouse reported that its revenues increased 77% to $30.8 million versus last year’s revenue of $17.5 million. Statehouse also said in its statement that it is exploring the potential sale of various non-core assets, which could bring in roughly $5-8 million of non-dilutive capital to strengthen the balance sheet and fund its growth objectives. Read more here.
FDA Warning Letters
On Monday, the FDA issued Warning Letters to five companies that produce products with CBD (cannabidiol) and specifically zeroed in on products that would appeal to children. The FDA noted in some of the letters that it was concerned about Delta-8 THC products that may be consumed by children, as some packaging and labeling may appeal to children. 11-11-11 Brands, Naturally Infused LLC, Newhere Inc., Infusionz LLC, and CBD American Shaman LLC were all issued letters. Read more here.
Cannabis investment veteran Emily Paxhia has resigned from her post as board member of Ascend Wellness Holdings (CSE: AAWH.U) (OTCQX: AAWH). The company on Wednesday said that Dan Neville, AWH’s interim co-CEO and CFO, as well as longtime investment strategist Joshua Gold, has been tapped to rotate into the board roster. Gold is a general partner of Boston firms Inverness LLC and Blue Flag Partners LLC. He served as a managing director at Jefferies & Co, as well as in various roles at Goldman Sachs and Bear Stearns. Gold was also on the board of the San Diego cannabis boutique chain Urbn Leaf. Read more here.
NY Fights Back
New York’s Office of Cannabis Management on Tuesday asked a federal judge to narrow the scope of a Nov. 10 order limiting the issuance of marijuana retail licenses to just Finger Lakes region rather than several localities, Law360 first reported. The news comes as the OCM had been gearing up to award its first cannabis licenses to New Yorkers who have been incarcerated or arrested for the plant. The injunction prevents the OCM from issuing licenses under the conditional adult-use retail dispensary (CAURD) program. Read more here.
In Other News
Cannabis company Curaleaf Holdings Inc. (OTC: CURLF) is eliminating “several positions” as it follows through on cost-cutting plans. The company did not provide a specific number of job cuts, but a copy of an internal email was posted on social media. The CEO said the company “must get leaner, reduce overhead and do more with less.”
InterCure Ltd. (NASDAQ: INCR) reports there are some fundamental disagreements between itself and Cann Pharmaceutical (including open matters which were not concluded at the time of the signing of the agreement), in addition to a disconnect between the parties, which pose doubts as to whether the signed agreement with Cann Pharmaceutical Ltd. will in fact be completed. Read more here.