🏪 NY approves another 101 licenses
🏪 NY approves another 101 licenses
15% of CA operators in default on Taxes. AL to restart licensing process. Sun Theory acquires 5 Terrapin Care Station locations in CO. MariMed acquires Medleaf (MD). Nova Farms $20M debt facility.
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🌿 Industry
NY Cannabis regulators approve 101 new licenses. Businesses approved were part of the third group of general license applicants who received approval, bringing the total number of fully licensed Cannabis businesses to 324. — Syracuse.com
New York now has more than 100 dispensaries operating statewide
Businesses approved for licensure include 35 retailers, 22 microbusinsses, 25 cultivators, 11 distributors and eight processors
OCM will resume considering and approving CAURD licenses, a process that was initially paused due to a court injunction in August, and then held up until April 1 as part of the settlement in that lawsuit
15% of California Cannabis Businesses Default on Taxes. With $243.5M of 2023 cannabis taxes in default, the state’s market could corrode further with excise tax increasing to 19%. — Cannabis Business Times
As of Dec. 31, 2023, nearly 15% of the state’s cannabis operators—including retailers, distributors and other tax-obligated businesses—were in default of their sales-and-use tax obligations, totaling $189.3 million in default, according to the California Department of Tax and Fee Administration (CDTFA). The rate for this tax ranges from 7.25% to 10.75% depending on locality
15.4% of California’s retail licensees were in default of their cannabis excise tax, totaling $54.2M in default, according to the CDTFA. The current rate for this tax is 15% but is set to increase to 19% in 2025
California had ~1,240 active dispensary licenses and 500 active delivery licenses. At a 15.4% default rate on the excise tax, this implies 250 businesses are behind on either all or part of their tax obligations
Alabama Senate committee OKs bills to restart medical cannabis licensing process. The Senate Agriculture, Conservation, and Forestry committee approved SB 306, which would restart the licensing process and take away some of the powers of the Alabama Medical Cannabis Commission (AMCC). — Alabama Reflector
All applicants that had application in by the original deadline will be allowed to apply again, at another deadline
The Alabama Securities Commission will verify and evaluate the applications, then send them to the AMCC to select the candidates. The commission would be responsible for regulation and enforcement
Ohio’s first recreational marijuana dispensaries could be open in early-to-mid June. State regulators could approve the first round of recreational dispensaries within days of receiving applications — Cleveland.com
However, a spokesman for the Ohio Division of Cannabis Control didn’t promise dispensaries by June. The statute gives the division until Sept. 7 to award licenses
The approval won’t take long because the medical dispensaries already comply with state specifications, such as rules about the businesses staying at least 500 ft from churches and schools, and their owners previously passed state inspections and demonstrated that they can comply with other Ohio marijuana laws and rules
The Division of Cannabis Control has proposed rules that would require it to have the applications for dual-use licenses published online no later than June 7. But the division could put the applications online earlier
Cannabis Business Association of Illinois asks to prohibit sales of intoxicating hemp. Hemp retailers call for regulations — Chicago Tribune
Charles Wu, co-founder of Chi’Tiva, with hemp stores in Chicago and Worth, said the proposed ban was a “money play” to eliminate competition
Rep. La Shawn Ford has introduced an alternative bill that would allow sales of intoxicating hemp products, but require them to be tested, labeled, regulated and taxed. Prohibition would create an underground market
The bill would require hemp businesses to be licensed and follow good manufacturing practices. Violators would be subject to fines and loss of license. The Illinois Department of Agriculture and local police could conduct enforcement
Vangst industry jobs report finds a gain of +22,952 jobs in 2023. There are now 440,445 full-time jobs supported by legal cannabis in the U.S, a 5.4% Y/Y increase
Massachusetts sales of $154M in March 2024, up from $143.8M in January and $143.3M in February, up 2.3% Y/Y from $150.5M in March 2023
💵 Deals
Sun Theory Expands Retail Presence through Acquisition of Five Denver-area Terrapin Care Station Locations. Terrapin’s corporate headquarters will remain in Boulder overseeing its expansion in Pennsylvania’s medical cannabis program, where the company has operated for nearly seven years. The five Terrapin locations add to Sun Theory’s eight current Colorado retail holdings, which include 3D Cannabis Center in Salida, the Rec Room in Durango and six Roots Rx locations in Aspen, Basalt, Edwards, Gunnison, Leadville and Vail. In addition, Sun Theory’s portfolio properties include Evergreen Naturals cultivation and processing facilities and Dialed In…Gummies. The acquisition does not include Terrapin’s Pennsylvania or Colorado cultivation or 33rd Avenue dispensary in Aurora, CO (acquired by Best Buds).
MariMed closes acquisition of Medleaf operating assets in Prince George's County, Maryland for $5.3M. Just prior to closing, MariMed paid the state’s adult-use conversion fee and subsequently received an adult-use license to sell retail cannabis products. The acquisition price was a combination of cash, debt and stock totaling $5.3M. The acquired dispensary has been closed since July 1st, 2023. The Company expects to reopen the dispensary and begin adult-use retail sales by the end of Q2, upon regulatory approvals. This is MariMed’s second adult-use Thrive Wellness dispensary in Maryland that the company owns and will be located in Upper Marlboro, Maryland. MariMed also owns and operates a Thrive Wellness dispensary in Annapolis and a cultivation and processing facility in Hagerstown. MariMed plans to continue seeking additional dispensary acquisitions to achieve the maximum of four allowed in the state.
Chicago Atlantic Closes $20M Facility with Nova Farms. Chicago Atlantic has closed a $20M facility in senior secured financing to Nova Farms, a fully integrated cannabis operator managing a Massachusetts cultivation farm, seven retail brands and five full-service dispensaries across Massachusetts, Maine and New Jersey.
📄 Company Updates
MariMed partners with MGM Music Hall Fenway and Citizens House of Blues Boston. The partnership marks Nature’s Heritage as the Exclusive Cannabis Sponsor, elevating the brand at highly anticipated shows to connect with millions of passionate music fans throughout the year. With an onsite fan experience, prime real estate on venue video screens and digital ad space, Nature’s Heritage becomes part of unforgettable live music events at MGM Music Hall Fenway and Citizens House of Blues Boston. MariMed will potentially get exposure to 1 million or more concertgoers. MGM Music Hall sells as many as 700,000 tickets annually for 150 shows, and the local House of Blues sees up to 500,000 people for 200 shows.
WM Technology receives Notification of Delinquency Letter with Nasdaq. The letter indicated that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) as a result of the Company’s failure to timely file its Annual Report on Form 10-K for the year ended December 31, 2023. This notification has no immediate effect on the listing of the Company’s securities on Nasdaq. The delay in filing the Company’s Annual Report is due to a recent change in the Company’s executive finance leadership and corresponding delay in the preparation of the Company’s financial statements to be included in the Annual Report and the Company’s need to complete additional financial-closing procedures associated with one or more material weaknesses in internal control over financial reporting.
Prodigy Processing Solutions partners with Solvent Direct. Headquartered in Los Angeles, Solvent Direct has distinguished itself as the industry's foremost provider of compliant solvent solutions, manufactured with an unwavering focus on consumer safety and product transparency. This makes Solvent Direct a pivotal partner in Prodigy's mission to revolutionize cannabis extraction.
🏬 Retail / Distribution
Kind Goods opens in St. Louis, MO. The dispensary will open about 150 feet from the two-decade-old Lift for Life Academy. The school of ~900 students tried to block the dispensary, but St. Louis city code does not limit where dispensaries can open. Good Day Farm, which has over 30 locations across Arkansas, Mississippi and Missouri, also plans to open 150 feet away from Life for Life Academy.
Xzibit's West Coast Cannabis (XWCC) opened right off the 405 freeway near UCLA. The dispensary will celebrate the launch on April 28 with a grand opening and 4:20 p.m. ribbon-cutting ceremony, followed by a block party.
Costa Mesa, CA puts dispensary cap at 35. Other proposed amendments include increasing the distance between youth centers and storefronts from 600 ft to 1000 ft and establishing a 250 ft distance between properties zoned residential. The council decided to not require a 24 hour security guard unless deemed necessary.
FLUENT opens in Daytona Beach, FL, its 35th in Florida.
Nabis adds Falcon and Maven. Falcon is a house of brands (Cru Cannabis, High Garden, Jetpacks, Littles and Zip) and Maven is an award-winning connoisseur brand focused on breeding high-caliber genetics.
🌱 Product
California has issued a mandatory recall for Tyson Undisputed Cannabis Flower, citing contamination by aspergillus mold. The April 9 recall from California’s Department of Cannabis Control (DCC) applies to two lots of Tyson Undisputed Cannabis Flower products grown by Humboldt-based Northern Emeralds. It is the 13th recall issued by the DCC so far in 2024 and the ninth recall this year related to aspergillus contamination.
The Cannabist Company and Revelry Expand Partnership to Four New East Coast Markets. Through this partnership, The Cannabist Company supplies a curated collection of strains for Revelry’s flower and pre-roll offerings, which are now available through the Company’s retail and wholesale platforms in Massachusetts and New Jersey. By mid-April, Revelry products will be on shelves in Pennsylvania at the Company’s three Columbia Care dispensaries and across the state through its wholesale channels. Products will also launch in Maryland, New York, and Ohio in the coming months, pending regulatory approval.
Grön Launches 300mg Sugar-Coated Pearl Packs in Missouri. Made with real fruit and infused with cannabis extract, Grön’s new higher-dose Sugar-Coated Pearls have 30mg THC per Pearl, delivering a total of 300mg THC per box.
Flowhub Launches Advanced BioTrack State Traceability Integration. The integration expands Flowhub's footprint to 36 states and simplifies dispensary operations, offering a centralized platform. Features include Multi-state functionality, in-app discrepancy management, automated sales reporting and receive by manifest.
🧔 People
Willow Industries CEO, Jill Ellsworth makes Inc. Female Founders 250 List. The list features boundaries-pushing female founders that grew their collective 2023 revenue to more than $8.9B and raised $6.2B in funding to date.
🎙️ Interviews
The Catalyst Table Starring Hirsh Jain | Higher Exchanges
Executive Insight on Expansive Rollout with Bryan Gerber | mg