The Daily Hit is a recap of cannabis business news for Sept. 20, 2022.
ON THE SITE
Aurora Cannabis Focuses On Long-Term Value Despite 4Q Loss
Canadian cannabis company Aurora Cannabis (Nasdaq: ACB) (TSX: ACB) reveled in its “long-term value” despite the company stock being at one of its lowest points in the past 12 months after releasing its fourth quarter and fiscal year-end results as of June 30, 2022, on Tuesday. According to a news release, Aurora saw fourth-quarter net revenue for medical cannabis increase 4% year-over-year to $36.6 million, while adult-use cannabis revenue fell 35% year-over-year to $12.6 million. Read more here.
New York Issues More Cannabis Business Licenses, Rules
According to Syracuse.com, the New York Cannabis Control Board awarded conditional business licenses to 19 cultivators and 10 processors, which brings the total number of licensed growers to 261 and the total number of processors to 25. The window for retail license applications opened last month, but thus far no store permits have been granted. Read more here.
Delay for SPAC-Safe Harbor Deal No Reason To Worry, Expert Says
On Monday, Northern Lights Acquisition Corp. revealed that it will need a few extra weeks to deliver the $70 million that it owes Safe Harbor Financial under the terms of a deal signed back in February, with the cash now due on Sept. 28 instead of Aug. 31. But the delay is only due to both parties waiting on approval from the Nasdaq, which is relatively common and doesn’t mean the deal is in danger, Matt Karnes, principal at New York-based GreenWave Advisors, told Green Market Report. Read more here.
Michigan Taps Industry For Suggestions Amid Market Saturation
Michigan cannabis operators’ face shrinking margins amid falling wholesale flower prices and a glut of supply – and the state’s regulatory agency wants to figure out how to help. Between July 2021 and July 2022, the number of active grower licenses has surged by 65%, and the number of active retail licenses has risen 34%. The average retail price for an ounce of flower has fallen 48% in the medical market (from $213.89 to $110.72) and 44% in the adult-use market (from $217.94 to $121.58) in that same span of time. Read more here.
Red White & Bloom Pushes Out Debt To 2024
Red White & Bloom Brands (CSE: RWB)(OTC: RWBYF) is pushing out its debt obligations to get some breathing room and making changes at the top of the company. The most pressing problem is the company’s debt payments, which is has kicked to 2024. RWB restructured the terms of certain outstanding debentures issued by the company $70,040,000 and C$2,120,000 and issued a new convertible debenture in the principal amount of C$17 million. Read more here.
Meet Kim James, The Lawyer Behind Detroit’s Cannabis Regulations
When the Detroit City Council finally codified its recreational marijuana codes, it was Kim James who drafted the language. She’s worked in code enforcement for the city most of her career. Now as the director of the office of marijuana ventures and entrepreneurship, James must stand up those codes and get recreational dispensaries licensed. But the city itself is behind, as most of the state’s industry has been selling weed for nearly three years. Read more here.
Zentrela Honored For Most Innovative Tech At Green Market Report Tech Awards
In 2016, Israel Gasperin and Dr. Dan Bosnyak, a neuroscientist at McMaster University, established the foundations of Zentrela, a neurotechnology company using artificial intelligence to analyze EEG data, to eventually compile the world’s largest database of cannabis psychoactive effects. The Green Market Report Tech Awards were presented following the first-ever Green Market Report Tech Summit on Sept. 8 at The Pearl event space in San Francisco. This week, we’ll be providing a closer look at the honorees. Read more here.
IN OTHER NEWS
Momentum Building For Legalization Of Recreational Marijuana In Hawaii
There’s a huge push underway to allow the recreational use of marijuana, even though the drug is still illegal under federal law. And more lawmakers are supporting legalization than ever before as a way to diversify the economy and bring in more revenue for Hawaii. Read more here.
Medical Marijuana Maker Sues Minnesota Over New THC Edibles Legalization
Vireo Health of Minnesota, one of just two distributors of medical marijuana in Minnesota, is suing the state and local governments over the state’s sudden legalization of hemp-derived THC edibles, arguing that it’s facing unfair regulation over essentially the same product. Read more here.
Aura Risk Management Launches New Cannabis Program
Aura Risk Management, a member of The Liberty Company network of insurance brokers, launched of Indisure, a new insurance program created exclusively for cannabis companies in all 38 legalized U.S. states. Aura’s program offers a complete coverage solution, including general liability, property, products liability and cargo. Read more here.