📰 Germany legalizes Cannabis for personal use
Cookies sued by TRP. MS revokes testing lab license from Rapid Analytics. CA DCC release dashboard. Garden Society acquires Chemistry. STIIIZY x Rolling Loud. Schwazze CEO resigns.
🌿 Industry
Germany’s parliament approved bill to legalize cannabis nationwide by a vote of 407-226. Germans support legalization, but only by a narrow margin, according to a new poll. 47% back the reform, compared to 42% who are against, with another 11% undecided. — Marijuana Moment
The bill will make possession (up to 25 grams in public and 50 grams at home) and home cultivation (up to three plants) legal and authorize social clubs that can distribute cannabis to members (up to 50 grams per month)
While supporters have said legalization would take effect in April if it’s enacted, there are new questions about that timeline. The Bundesrat may move to refer the legislation to a mediation committee to address criminal justice-related implications of the law, which could mean several months of additional discussion
Patients in Germany will no longer require a narcotic prescription form as standard prescriptions will be sufficient. Getting a cannabis prescription also becomes easier
Cookies sued again by dispensary partner, TRP, in $100 million dispute. Cookies Retail LLC alleged in a lawsuit filed in California Superior Court in Orange County that Cookies breached California franchise law, made misrepresentations and caused not less than $100M in damages. — MJBizDaily
The $100M+ in damages equates to the amount Cookies Retail (TRP) alleges it invested in 33 Cookies-branded stores it opened across the country
The California suit alleges that Cookies intentionally failed to register as a “franchise,” as defined by state and federal law, in order to evade certain disclosure requirements
Licensors market their IP for a fee but generally do not involve themselves in a business’ day-to-day decisions. Under a franchise agreement, one party exercises significant control over the other. In the Orange County suit, TRP alleges that Berner and other Cookies principals meddled “in nearly every aspect of Plaintiff’s business operations, from hiring employees, to marketing to inventory”
California Department of Cannabis Control (DCC) releases four data dashboards to display essential licensing, harvest, and sales statistics for California cannabis industry. — DCC
These dashboards transform raw data from DCC’s licensing and track-and-trace systems into insights to inform consumers, cannabis businesses, policymakers, local government officials, and researchers
The monthly sales dashboard currently only features data from 2020 through June 2023 with updates containing all 2023 data within the next few months, but after that point, expects to update monthly sales on a quarterly basis
Mississippi Department of Health to revoke the license from Rapid Analytics, the largest medical cannabis testing lab in the state. This comes after MSDH’s investigation from December 21 to February 9. — Mississippi Free Press
Rapid Analytics once tested 70% of the state’s medical cannabis. Mississippi now has two medical-cannabis testing labs, Steep Hill and Alchemy Analytics
Concerns about the lab arose after Rapid Analytics and Steep Hill tested the same cannabis sample, but Steep Hill’s analysis showed impurities while Rapid Analytics’ did not
Catalyst Cannabis CEO Elliot Lewis goes after Glass House Farms (again) at Benzinga Cannabis Market Spotlight saying the “legal market is the black market”
Virginia Democrats reach deal on adult-use cannabis retail market bill. Lawmakers agreed to changes to legislation to set up a legal market, which then advanced out a Dem-led House committee on party-line vote
Mississippi Medical cannabis has produced $44M+ in retail sales in the past year
💵 Deals
AWH Executes Definitive Agreement to Acquire its Second Cultivation License in Massachusetts. The Amesbury facility boasts a spacious 54,000 sq. ft. area, with plans for a targeted investment to encompass 15,000 sq. ft. of canopy and a state-of-the-art kitchen. When combined with AWH's existing cultivation and production facility in Athol, Massachusetts, this move will elevate the Company's total cultivation space in the state to an impressive 70,000 sq. ft. of canopy.
Garden Society acquires Chemistry in all-stock deal. The acquisition adds manufacturing expertise and expands its categories with tinctures, cartridges and other artisanal products. Chemistry CEO/Founder Paul Roethle will join Garden Society as VP Product.
Silver Spike to Acquire Loan Portfolio From Chicago Atlantic. The Company will acquire the CALP Loan Portfolio in exchange for newly issued shares of the Company’s common stock with a net asset value equal to the value of the CALP Loan Portfolio, each determined shortly before closing. As of January 1, 2024, the CALP Loan Portfolio comprised 24 loans with an aggregate value of ~$130M. CALP has agreed to use reasonable best efforts to add 4 loans with an aggregate value of approximately $43M to the CALP Loan Portfolio prior to the closing of the Loan Portfolio Acquisition.
📄 Company Updates
STIIIZY x Rolling Loud For California Festival. Rolling Loud has inked an exclusive collaboration with STIIIZY for Rolling Loud California 2024 at Hollywood Park in Los Angeles. The partnership includes a four-piece product line developed for the four-day fest headlined by Ye and Ty Dolla $ign, Nicki Minaj, Post Malone, and Future performing with Metro Boomin. The four new consumer brand offerings include two new strains of indoor cannabis “Rockstar Zlushie” and “Rolling Loud OG,” a gram of “Rockstar Zlushie” live resin liquid diamond pods and a five-pack of “Rolling Loud OG” kief-coated pre-rolls.
Glass House Brands faces class action lawsuit alleging numerous labor law violations. The employee-led suit accused the California-based company of not providing sick leave, failing to pay minimum wage, and denying legally mandated lunch breaks, according to court documents obtained by Law360.
AFC Gamma to Separate Commercial Real Estate Lending Business into Independent Public Company. AFC GAMMA will spin-off its commercial real estate (CRE) portfolio into an independent, publicly traded company that intends to elect REIT status, Sunrise Realty Trust (SUNS). The spin-off will result in two pure-play debt capital providers—one focused solely on the cannabis industry and a second on CRE in the southern United States.
Metrc signs contract with Kentucky to support the regulation of its medical cannabis market. In March of this year, Governor Andy Beshear signed Senate Bill 47, legalizing medical cannabis effective January 1, 2025.
CLS Repays $1,526,250 in Principal and Interest Debenture Obligations Along with the Repurchase of 13,274,780 Shares. The retirement of the debt and the repurchase of shares was financed through a series of four loans totaling $1,350,000, with 12% interest, payable monthly, over the course of 24 months. These new loans represent a material reduction in the interest rate and a significant extension of the duration for payment over the notes that have been repurchased using those funds.
🏬 Retail / Lounge
Cresco Labs opens Sunnyside Gettysburg, PA. The new store is located just off US Route 15 and 10 minutes away from the Gettysburg Battlefield Historic District. This brings Cresco Labs’ store count to 15 dispensaries in PA and 72 locations nationally.
Blue Sage Cannabis Deli opens first in St. Louis, MO. This is the company’s third dispensary in MO. Blue Sage Cannabis Deli, operated by parent company Show-Me Organics, plans to open next in Kansas City. Show-Me Organics operates popular brands like Buoyant Bob, Missouri’s Own and Vivid— Missouri’s leading brand of flower and concentrates distributed in 90% of the state’s dispensaries.
CODES Cannabis opens Cardwell, MO dispensary. This is the Company’s 16th dispensary in MO. The Company is known for its flower offerings.
Burb opens eighth B.C. dispensary. The dispensary is steps away from the University of British Columbia’s main campus and has reached the province’s cap.
Cannavita opens second legal dispensary in Astoria. Terp Bros opened in October last year following a two-month legal battle.
Sweetspot Farm opens West Hartford, CT dispensary.
Smoke and Mirrors opens first of 19 conditionally approved lounges in Nevada. The lounge is located in the Thrive Cannabis Marketplace near the Las Vegas Strip.
🌱 Product
The Cannabist Company Launch Unique Fast-Acting and Longer-Lasting Layered Edibles. The dual-action, bi-layered gummies are a cutting-edge fusion offering a swift onset with lasting effects. The top layer is infused with fast-acting distillate made with Azuca sugar, and the bottom layer is infused with a full-spectrum distillate which offers a flavorful, holistic, and sustained high that lasts long after consumption.
Tilray Brand Solei Launches Cannabis Infused Cold Brew Teas. Leaning into cold brew teas, Solei continues to expand its beverage lineup following the success of its first-ever ready-to-drink infused beverage line featuring Mango Passionfruit and Dragonfruit Watermelon Sparkling CBD beverages, along with last year’s initial launch of its hot tea collection, Lavender Chamomile CBN tea and Chai Rooibos with CBN.
🧔 People
Schwazze CFO Forrest Hoffmaster given additional role of interim CEO after CEO’s resignation. This follows Nirup Krishnamurthy's resignation as CEO and as a member of the board of directors, effective Feb. 20, 2024, due to personal reasons.
🎙️ Interviews
How Do You Make a Weed Empire? Sell It Like Streetwear | The Sunday Read
Earnings Preview and Germany Review With Boris Jordan | Higher Exchanges
A Deep Dive Into The Pennsylvania Cannabis Market | TDR