💬 Biden Mentions Marijuana Reform In State Of The Union Address
Alpine IQ (AIQ) acquires Dispense. Mammoth Distribution acquires Papa & Barkley. NABIS acquired Blackbird for $850K. Planet 13 closes $11.3M offering.
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🌿 Industry
Biden Promotes Marijuana Reform In State Of The Union Address, A Historic First. In his last SOTU, President Joe Biden noted his move “directing my Cabinet to review the federal classification of marijuana” — Marijuana Moment
In his speech, Biden said his administration expunged thousands of cannabis records, but his executive order used different language—it said he would issue pardons to people with cannabis offenses. It’s an important difference, because someone with an expunged record can say they do not have a criminal record on a job application or background check, while those with pardoned records cannot
However, groups such as The American Cannabis Collective questioned Biden’s failure to embrace cannabis policy with overwhelming support:
“We do not know why he continues to bring up these supposed cannabis pardons, they aren’t real no matter how much they might believe their own rhetoric. Shame on them and shame on those that give them cover, voters know when they have been lied to even when advocates fail to hold them accountable.” said ACC Co-founder, Carl Cameron
And just days after the SOTU, President Joe Biden has released a budget plan that proposes to maintain a controversial provision prohibiting Washington, D.C. from using its local tax dollars to legalize cannabis sales
Cannabis sales in Minnesota are likely to start later than expected. How much later isn’t clear. — AP
Minnesota probably won’t meet its goal of launching full-scale retail cannabis sales in Q1 2025 because of the time it will take to draft regulations and issue licenses, the state’s top cannabis regulator acknowledged
Data compiled by KMSP-TV show that the average time in 20 other states has been 17 months from the vote to legalize to the first retail sales, with a median time of 14 months. It took 14 months in Colorado, while it took Vermont 57 months. Some states took less than a year. Minnesota appears poised to need at least 22 months
One legal marijuana shop in Central NY is suing to block another from opening. One of Onondaga County’s two legal recreational marijuana shops is suing the NY’s OCM, claiming the agency illegally barred the shop from opening in a better location, then allowed another cannabis shop to open there instead. — Syracuse.com
The lawsuit, filed in State Supreme Court by TJ’s Cannabis, contends the state is allowing Raven Dispensaries to open in a location TJ’s was told was impossible
The lawsuit is based on the cannabis office licensing process, and specifically a program in which the state was offering financial aid and site selection to dispensaries through the Dormitory Authority of the State of New York (DASNY)
TJ"‘s Cannabis claims the state denied their proposal for a dispensary several times in 2023 because it would have been within 1,000 feet of a location secured and reserved for dispensaries getting DASNY help
Further data requests from CA DCC denied. Higher Origins published a blog post with problems related to the DCC’s data dashboard, subsequently, they requested further data transparency, which was denied. The DCC refused to provide further data, and preemptively cautioned against filing a Public Records Act request, noting that the data is exempt from the PRA.
Ohio Governor wants a bill passed to allow immediate purchase at medical dispensaries. Ohio’s Division of Cannabis Control has been working to draft and finalize rules in time to release applications for dispensary licenses by June 7 and issue provisional licenses to operators by Sept. 7. However, Gov. Mike DeWine is urging more immediate action. DeWine called for state lawmakers to pass a newly introduced bill allowing consumers 21 and up the ability to buy from medical dispensaries immediately to prevent "black market" sales.
Michigan may establish a state-run cannabis testing lab to aid industry oversight. The lab has been in the works for nearly a year, with the most recent state budget allocating $2.8M for the lab and another $1.6M annually for its operation and staffing. But the state Cannabis Regulatory Agency maintains it needs more explicit authority, so lawmakers are running a bill to give it to them — GMR
Greg Michaud, the CEO of testing lab Viridis, blasted the state-run lab idea and asserted the state cannot be “fair, impartial, and transparent,” but his company has been involved in litigation against the CRA over a product recall in 2021
By contrast, a spokesperson for the Michigan Cannabis Industry Association said the trade group’s members are “adamant” that a state-run lab would improve enforcement and ensure a level playing field
NY OCM launches New Delinquent Payment Reporting System for Licensed Suppliers on March 25, 2024. The C.O.D. list is a list of retailers who are delinquent in paying for cannabis products purchased on credit from licensed suppliers. Licensed suppliers cannot extend credit to any licensed retailer who appears on the C.O.D. list. Suppliers are responsible for checking the C.O.D. list prior to selling a cannabis product(s) to a retailer on credit. If your review of the C.O.D. list shows that a retailer is delinquent, you may only sell to them on a C.O.D. basis.
Navigating Missouri’s Stringent Cannabis Testing Requirements: A Deep Dive. Among the strictest testing regiments in the industry, Missouri’s regulations require all cannabis products produced for the medical or recreational market to be tested in its final form, including pre-rolls. That means not only is the flower subject to testing, but the paper and any other ingredients as well, since anything can cause a failure that can see the whole product lot destroyed.
Cure Ohio and Dorchester Insurance filed a complaint against Eye Lighting International of North America for allegedly failing to warn of the dangers of using a lamp and lighting fixture together. On February 26, 2022, a lamp manufactured by Eye Lighting exploded at a Cure facility in Columbus, resulting in glass shards falling on the grow facility tables and crop.
New Buffalo Township, a 36 square mile unincorporated township in Southwest Michigan next to the Indiana border, sees 35 applications to open dispensaries
New Mexico February sales of $48.0M, passes $1.0B in sales since April 2022
Missouri applications for second round of cannabis microbusiness licenses open in April. During the first round of microbusiness licensing, there were more than 1,600 applicants and 48 licenses were issued in October.
Emerald Cup postpones to Aug 17th & 18th, 2024 to expand programming
💵 Deals
Alpine IQ (AIQ) acquires Dispense. Dispense, known for their digital menuing and SEO expertise—empowers customers with a no-code platform that streamlines order management and optimizes customer engagement. The acquisition of Dispense represents an expansion of Alpine IQ’s goal to deliver a full range of products designed to seamlessly run core business needs and drive greater ROI efforts.
Planet 13 closes $11.3M offering. The Company issued and sold 18,750,000 units of the Company at a public offering price of $0.60 per Unit. Each Unit consisted of one share of common stock, no par value, of the Company and one warrant. Each warrant entitles the holder to purchase one share of Common Stock for a period of 5 years following the closing date of the Offering at an exercise price of US$0.77, subject to adjustments in certain events.
Mammoth Distribution acquires Papa & Barkley. Papa & Barkley is in the process of consolidating its distribution operations with Mammoth, though the production side of its facilities is expected to stay local for the foreseeable future. Papa & Barkley has already integrated some of its operations with Mammoth, including dispensary deliveries and sales. Papa & Barkley had been looking at potential merger partners for the last year, and one of the things that was really important was for the brand to carry on and with a real emphasis on quality.
More details released around HERBL’s receivership. NABIS acquired Blackbird for $850,000. Herbl’s AR claims was sold for $600,000 to a private investor. According to court filings and WeCann marketing materials, the asset was originally tied to more than $7M in collectible debt from hundreds of retailers and nearly 100 brands. That estimate now is closer to $1M “because HERBL owes significant sums to product manufacturers” from acquiring inventory on consignment, according to a recent court filing. A bundled package of unsettled Herbl legal disputes was acquired by Beverly Hills law firm Ervin Cohen & Jessup for an undisclosed amount. Herbl’s receivership has one remaining asset for sale. Its Athena software platform, originally valued at $500,000, is now listed for $75,000.
Vext completed the acquisition of a cannabis dispensary in Columbus, OH, as part of the previously disclosed acquisition of Appalachian Pharm Processing. As part of the closing, Vext will pay CannAscend Ohio Columbus, LLC, additional aggregate consideration of ~$2.9M plus ~$148K for certain pre-closing tax liability of the Columbus Dispensary, subject to adjustments based on pre-closing operations. The Columbus Dispensary is called Strawberry Fields. Its auditor also resigned.
Safe Harbor originates $4.6M credit facility for a Michigan cannabis operator secured by a four-dispensary real estate portfolio. With this new credit facility, Safe Harbor’s total loan book will exceed $60M in outstanding loans and commitments, which is comprised of 25 cannabis real estate assets across 10 states covering every segment of the cannabis value chain.
First Citizens Bank provide $1M working capital line of credit to MC Nutraceuticals. Founded in 2019, MC Nutraceuticals sells 42 hemp-derived products to a diverse client base across the U.S. and internationally. Their product line includes Delta 8, CBD, CBG, CBC, CBN, THCv and other hemp derivatives.
📄 Company Updates / Earnings
Curaleaf Q4 revenue of $345M, up 4% Q/Q. Gross profit of $156.2M (45% margin), adjusted EBITDA of $83M (24% margin). FY2023 revenue of $1.35B, up 6% Y/Y, Gross profit of $614.4M (46% GM), Adjusted EBITDA of $304.5M and (23% margin), CFO of $91M, $91.8M of cash and $587.8M of outstanding debt.
AWH Q4 2023 net revenue, which excludes intercompany sale of wholesale products, down 0.8% Q/Q to $140.2M, and increased 25.0% Y/Y, Adjusted EBITDA was $32.4M (23.1% margin). FY 2023 net revenue increased 27.8% Y/Y to $518.6M, Adjusted EBITDA was $106.5M (20.5% margin), cash of $72.5M, and net debt was $236.2M.
MariMed Q4 2023 Revenue up 8% to $38.9M from $35.8M in Q4 2022, $5.2M Adjusted EBITDA (14% margin), 2023 Revenue up 11% to $148.6M from $134M in 2022, $24.7M Adjusted EBITDA (17% margin), $14.6M cash. Guidance for revenue growth of 5% to 7% and Adjusted EBITDA growth of 0% to 2%.
AFC Gamma reported net loss of $(9.2M) and Distributable Earnings of $10.0M for Q4 2023, net income of $21.0M and Distributable Earnings of $41.4M for FY 2023.
Surfside x BLAZE partner to Enhance Retail Media Advertising in Cannabis. Commerce Media, which launched out of private beta in July 2023, introduces an innovative advertising channel that seamlessly integrates with a retailer's ecommerce menu, enabling brands to advertise directly to in-market shoppers at the point of purchase via premium ad placements.
Jane Technologies named as one of Forbes' America's Best Startup Employers. Forbes used millions of data points to determine the company scores, and the 500 startups with the highest scores made the list.
🏬 Retail
Trulieve Opens Express Dispensary in Palm Bay, FL. Customers can place online orders on the Trulieve website ahead of fast and convenient express pickup service via the dispensary's multiple drive-through and walk-up windows.
PharmaCann opens Verilife South Philadelphia dispensary. Verilife South Philadelphia expands the Company's retail presence to nine retail Verilife locations statewide and 56 locations nationwide, including the Company's LivWell dispensaries.
Acreage commenced adult-use sales at its Vernon, CT dispensary. The Botanist Vernon is now operating as a hybrid dispensary, providing its full suite of products to both medical patients and adult-use customers.
MariMed opens permanent and much “bigger” Thrive dispensary in Casey, IL. The dispensary had operated from a temporary location since opening last October.
A Golden State opens flagship retail in Redding, CA. Lindsey Bartlett takes a closer look at how the store’s design matches up with the brand’s aesthetics. The company built an impressive storefront, offering up transparency to their meticulous growing process. This same transparency hints at the quality of the product in each package.
High Seas ready to open in Costa Mesa, CA after surviving a legal storm. After spending more than $6M acquiring the building and another $4M in tenant improvements, the dispensary was denied a cannabis business permit with no official explanation from city officials. After filing a lawsuit, settling and agreeing to pay up to $85,000 to cover the city’s legal fees, the dispensary is soon to open.
MedMen shutters all but 2 of its dispensaries. Only MedMen stores in San Diego and LAX remain open. The company closed its San Francisco store in the Cow Hollow neighborhood last Thursday. The Long Beach location closed the prior week. Earlier Friday, a worker at MedMen’s Santa Ana location told MJBizDaily that the Southern California store was shuttered in the morning, holding a 75% off sale.
Maggie's Farm Colorado shuttered five of its eight shops suddenly. The closures leave the 14-year-old company with one store in Colorado Springs, one in Pueblo North, and one in Manitou Springs. The shops that closed included two in Pueblo, one in Las Animas, and one in Cañon City.
🌱 Product
Green Monké x Cookies launch 100mg THC-Infused Iced Tea in CA. The first Cookies x Green Monké collaboration drink will be Original California Iced Tea Lemonade, with 100mg THC in a 12 ounce can. It is the first product in Cookies’ latest line of higher-dosed beverages. It's fast-acting and provides effects in minutes. It is now available for sale at Cookies and Lemonnade retail locations.
Budist, the Cannabis Industry’s First Dedicated Social Review Platform, Debuts in California Market. The platform is the first in the industry to centralize and share product reviews from cannabis experts and mainstream consumers with a 100-point rating scale. Designed to catalyze product premiumization while uplifting the cannabis community, Budist stokes a culture of connoisseurship, blending industry insider knowledge with appreciation of cannabis in its many modern forms.
Jetty Extracts launches in NJ. Featuring classic strains like Maui Wowie, Pineapple Express, and more, JETTY’s High THC vapes are now available exclusively at AYR Wellness dispensaries.
Wana Brands x Alpen Group to enter Switzerland. Switzerland, known for its stringent quality standards in manufacturing, is now positioned to add cannabis edibles, specifically gummies, to its list of high-quality products, with the launch anticipated by 2025.
🧔 People
Cann names new CRO, COO. As it continues to expand its reach across channels, Cann is naming Travis Tharp and Nick Fasano COO and CRO, respectively. Fasano was previously at Eaze, while Tharp was President and CEO at Keef Brands.
Turning Point Brands appoints Andrew Flynn as CFO. Flynn served as CFO of Connected Cannabis where he was responsible for bringing sustained profitable growth, expanding geographically and recapitalizing the company. Before joining Connected he served as SVP of Juul Labs.
iAnthus Board Director John Paterson resigns. Paterson joined the Company on April 20, 2023.
🎙️ Interviews
Talking Business w/ Jesse Channon, the President of The Cannabist Company | BBC
Earnings Review w/ CannaVestments and Boris Jordan | Higher Exchanges
Catalyst Cannabis Takes on the CDTFA Over Cannabis Excise Taxes | Cannabis Law Now