🗳️ Ohio becomes 24th State to Legalize
BAT invests C$124.6M into Organigram and creates Strategic Investment Pool. Trulieve redeems $130M Notes due 2024. GALLUP poll shows 70% of Americans now support legalization. MariMed CFO resigns.
💬 Check out the latest podcast episode with Eaze CEO Cory Azzalino. In related news, Eaze’s motion to dismiss the lawsuit (Case No. CGC-23-607777) brought by Green Dragon was granted. Green Dragon had alleged that Eaze's operations violated California law, and that Eaze misrepresented their finances to Plaintiffs, among other claims.
🌿 Industry
Ohio becomes 24th state to embrace cannabis legalization. 57.0% voted “Yes” on Issue 2 — POLITICO

Because the measure is statutory and not a constitutional amendment, lawmakers can amend or even repeal it altogether. Given the strong margin of passage, advocates don’t think lawmakers will try to repeal it. Ohio Gov. Mike DeWine, who opposes legalizing marijuana, does not have the authority to veto a proposal-made law via the ballot, according to the Ohio Constitution
Hirsh Jain, Ananda Strategy, called it a healthy win and believes a timely implementation of the initiative with minor tweaks to some of the law's provisions (e.g. allocation of cannabis tax revenue, product potency limits, expungement procedures, eligibility criteria, home grow limits) by the GOP legislature could allow adult-use sales to start in September 2024
With a population of 11.8 million, Ohio is the 4th largest state with a rec. market
MJBizDaily projections suggest adult-use sales could reach $1.5–$2 billion in the first year after the market launches and $3.5–$4 billion in year 4. BDSA projects adult-use will launch in 2025 and that sales will be $820 million, growing to $1.65 billion in 2027
MSOs in the state with 5 dispensaries include Cresco Labs, Verano, Columbia Care, GTI, and Acreage. AYR has 3 dispensaries, while Curaleaf and AWH have 2
Grassroots Support for Legalizing Marijuana Hits Record 70%. Seven in 10 Americans think marijuana use should be legal, the highest level yet after holding steady at 68% for three years. — GALLUP
The latest results are based on a poll conducted Oct. 2-23. Aside from those in favor, 29% of U.S. adults think cannabis should not be legal, while 1% are unsure
79% aged 18-34 back legalizing cannabis, compared to 71% age 34-54 and 64% age 55 and older
Dispensary ballot measures lost in all four Metro Detroit communities. Birmingham, Rochester, Keego Harbor, Gross Pointe Park all vote “No” — Detroit News
89% voted “No” in Rochester for three dispensaries; 74% voted ”No” in Birmingham to allow 1 recreational & 1 medical dispensary; 66% voted “No” in Grosse Pointe Park; 53% voted “No” in Keego Harbor for 1 dispensary
‘Help us, we are dying.’ New York’s cannabis farmers are at their breaking point. The Cannabis Farmers Alliance, an industry group advocating for the rights and interests of cannabis farmers and small businesses, recently surveyed their membership in preparation for a New York State Senate Subcommittee hearing on the disastrous rollout of the state’s legal cannabis marketplace. — Syracuse.com
A representative sample of responses are included below. The entire packet of answers can be viewed here
“The exorbitant cost of lab testing is prohibitive and the pass/fail on aspergillus made it impossible to sell smokable flower without the costly remediation of the products”
“The regulations allowing the ROs to wholesale have devalued all AUCCs and put us head-to-head with the biggest brands in the industry at a time when we need thousands more stores to justify these 11 giant grower operations”
Sanctuary Cannabis challenges Florida’s license renewal fee hike. The Florida Department of Health adopted a rule creating a formula that set the license-renewal fee for medical marijuana operators at $1.33M every two years. — Tampa Bay Times
The formula is based on the number of licensed operators and the cost to regulate the medical marijuana program. But the fee does not take into account the tens of millions of dollars collected by the agency from patients and caregivers who pay $75 a year for identification cards
The Department of Health collected $14.9 million in license application and renewal fees and ~$65 million from patients and caregivers in 2022-2023
The revised license-renewal fee is “an exponential increase” from the previous amount, lawyers for Sanctuary Cannabis, whose license is due for renewal in January, argued in a challenge filed last week
Cannabis omnibus bill fails in Illinois. The day before Illinois’ spring legislative session ended, lawmakers were poised to pass a wide-ranging cannabis bill that was meant to save struggling small businesses. The measure had largely been agreed upon by stakeholders in months of meetings. — Chicago Tribune
But large cannabis companies and some lawmakers suddenly pushed to include a ban on hemp-derived products like delta-8 THC. That controversial measure blew up any agreement on the all-in-one “omnibus” bill
The key proposed change would have increased canopy size for craft cannabis growers from 5,000 to 14,000 square feet
A small group of 19 existing full-size growers in the state like Cresco, PharmaCann and Verano Holdings are allowed to grow more than 200,000 square feet, dwarfing the craft growers
Sonoma cannabis grower gains statewide recognition for ‘living soil. Moon Valley Cannabis (MVC) is the only indoor cannabis grower in Sonoma Valley, but its success with “living soil” has garnered acclaim far outside the Valley of the Moon. — NBBJ
The company’s growing methods differ from others—whereas other cultivators will replace soil each season or add fertilizer to recharge the soil, MVC relies on the use of “living” soil. Worms, roly-polies, spiders and other insects inhabit the soil and create a self-sustaining mini-ecosystem for the plants to thrive
“We fill them with soil one time and we don't ever change that soil ever,” founder Eli Buffalo said. “It's built as like a living soil blend. So it's comprised of peat moss, compost, different minerals … essentially it’s a good place for biology to thrive”
Moon Valley Cannabis has won first in most eco-friendly indoor facility at the Emerald Cup in 2021, third place for hash at the Emerald Cup in 2023, and first place for its “Hawaiian Snowcone” strain at the statewide Transbay Challenge (LA)
Monterey City Council votes 4-1 to pass ordinance to permit four cannabis storefront retailers, one non-store front retailer requiring delivery of medicinal cannabis and two events at the Monterey County Fairgrounds
Duane Morris takes a closer look at the recent opinion In re Hacienda, No. 2:22-BK-15163-NB, (Bankr. C.D. Cal. July 11, 2023) where the U.S. Bankruptcy Court for the Central District of California refused to conform to the same historical standard regarding cannabis-related bankruptcies. Instead, the Bankruptcy Court struck down the U.S. trustee’s motion to dismiss not once but twice in favor of confirming a Cannabis business’ Chapter 11 plan of reorganization
SXSW 2024 Lineup announced, leaning into Psychedelics while nixing Cannabis track
BDSA data shows sales decreased (1.3%) sequentially in September
Maryland reports $90 million in Oct. sales, down slightly from $90.7 million in Sept.
New Mexico adult use sales of $501 million since sales began in April 2022
Oklahoma extends moratorium (HB 2095) on issuing new licenses for dispensaries, processors, and growers to Aug. 1, 2026
💵 Deals
British American Tobacco (BAT) invests additional C$124.6 Million into Organigram and creates “Jupiter” Strategic Investment Pool. The majority (C$83.1 million) of the C$124.6 million investment will be used by Organigram to create a strategic investment pool, named Jupiter. Jupiter will target investments in emerging cannabis opportunities that will enable Organigram to apply its industry-leading capabilities to new markets. Management has identified that geographic expansion is a strategic priority and this opportunity presents the Company with the capital to lay global foundations as the legal recreational cannabis market continues to see significant growth. BAT will increase its voting common share ownership to 30% and overall equity interest to 45%. BAT will subscribe for 12,893,175 million shares on the closing of the first tranche (currently expected to be on or around January 16, 2024) for gross proceeds of C$41.5 million with the remaining 25,786,350 shares to be subscribed for in two further equal tranches on or around August 30, 2024 and February 28, 2025
Trulieve issues notice of redemption for all of its outstanding 9.75% senior secured notes due 2024. The aggregate principal amount of the Notes currently outstanding is $130 million. As set forth in the notice of redemption, the redemption date will be December 1, 2023, and the redemption price is 100% of the principal redeemed, plus accrued and unpaid interest up to, but excluding, the Redemption Date. The company did not say how the debt would be repaid
Constellation Brands lets warrants to purchase common shares of Canopy expire. All 88,472,861 Tranche A warrants held by Constellation’s wholly-owned subsidiary, CBG expired as of November 1, 2023. Since the vesting of the remaining aggregate of 51,272,592 Tranche B and Tranche C warrants was conditioned on the exercise, in full, of the Tranche A warrants, the remaining Warrants are not, and will not become, exercisable by CBG. As a result, Constellation is no longer deemed to beneficially own any of the 139,745,453 Common Shares underlying the Warrants. The 139,745,453 Common Shares underlying the Warrants would have represented an aggregate of ~16.9% of the Common Shares outstanding as of September 30, 2023. CBG and another subsidiary of Constellation, Greenstar Canada Investment Limited Partnership, now hold an aggregate of 171,499,258 Common Shares (representing ~20.7% of the issued and outstanding Common Shares) and C$100.0 million principal amount of the 4.25% promissory note due 2024 issued by Canopy
Sorting Robotics secures $2 Million Debt Financing from KISO Capital and Prospeq. Sorting Robotics provides industrial automation solutions for the cannabis industry
Glass House Brands and Element 7 enter into a Settlement and General Mutual Release Agreement. Element 7 has agreed to pay GH Group $2,865,000 to settle the Element 7 Proceeding; provided, that if Element 7 pays GH Group $1,865,250 by December 15, 2023, then Element 7 shall be entitled to a credit of $999,750 towards the $2,865,000 payment. In addition, Element 7 retains ownership of its retail licenses, and will take title in a property from a GH Group affiliate in Firebaugh in connection with the Element 7 Settlement
RiverFort Global Capital arranges $3 Million Unsecured Mezzanine Loan with Hellenic Dynamics. Founded in 2019, Hellenic Dynamics is specifically focused on the cultivation and supply of THC dominant strains of medical cannabis flowers, destined for the growing medical cannabis markets across Europe. Hellenic Dynamics’ core strategy is to develop and operate its 40,000 square meter active cultivation license from its 195,506 square meter facility located near Thessaloniki in Northern Greece
Boveda acquires FreshStor, a leading provider of premium storage solutions for cannabis products. Under the acquisition, Boveda will add FreshStor's CVault® and EVault™ premium storage containers, known for their exceptional quality and innovative design, to their product line-up
Chicago Atlantic Funds Term Loan to Halo Collar. Halo Collar™ is an AI-driven dog collar that utilizes proprietary technology to offer highly accurate GPS dog fencing solutions. The collaboration with Halo Collar is part of Chicago Atlantic’s growth finance strategy, which aims to support companies as they accelerate their growth
📄 Company Updates / Earnings
GTI reports Q3 revenue of $275 million, up 9% sequentially
Verano Q3 revenue of $240 million, up 3% from the prior quarter
AWH Q3 revenue of $141.3 million, up 14.9% from the prior quarter
MariMed Q3 revenue of $38.8 million (43% GM), up from $33.9 million (48% GM)
WM Technology reports Q3 revenue of $47.7, down from $50.5 million in Q3 2022
Turning Point Brand Q3 net sales decreased (5.6%) to $101.7 million vs Q3 2022
Chicago Atlantic Q3 shows $355.9 million of loan commitments across 27 companies
IIP Q3 revenue of $77.8 million, up 10% increase from the prior year’s quarter
AFC Gamma Q3 Net Income of $8.0 million in Q3, down from $11.4 million in Q3 2022
Cronos Q3 net revenue of $24.8 million, up $4.4 million from Q3 2022
Village Farms Q3 revenue down (2%) from prior year to $69.5 million
Agrify receives Extended Stay of Suspension from Nasdaq
BLAZE earns SOC 1 Type II and SOC 2 Type II data security certifications
🏬 Retail / Cultivation
AYR opens Woodmere, OH and Goshen, OH dispensaries. Located in a Cleveland suburb, Woodmere, Ohio is a 4,500 sq. ft., conveniently situated near the popular Beachwood Place Mall and close to the interstate. The 2,700 sq. ft. Goshen location is located in a suburb of Cincinnati. AYR has scaled its cultivation and production efforts in the state with the opening of a 58,000 sq. ft. cultivation facility in Parma, Ohio. The Company also entered option agreements to acquire a third Ohio dispensary, Daily Releaf, LLC in Riverside, Ohio, in the Dayton Metropolitan Area. AYR anticipates the Riverside location will be open later this month
GTI opens RISE Dispensary in Clearwater, FL, its 11th dispensary in Florida
Firelands Scientific opens Cincinnati, OH dispensary. The Landing–Cincinnati marks Firelands Scientific’s fifth Ohio dispensary and brings it to 10 stores, serving patients across five The Landing West Virginia locations as well as its other four Ohio stores in Cleveland, Columbus, Monroe, and Huron
Little Beach Harvest dispensary opens on Shinnecock Land. Little Beach Harvest is owned and licensed by the Shinnecock Indian Nation and is the first tax-free cannabis dispensary on Long Island and will also feature indigenous brands and products
Higher Collective opens third location in New London, CT. The New London location follows the Killingly, CT and Willington, CT locations openings last month. Higher Collective plans to open in Hartford around Thanksgiving with three more locations set to open across Connecticut by early 2024
RIV Capital Completes Expansion of New York Cultivation and Production Operations
High Seas filed a Writ of Mandate against Costa Mesa, CA to compel the city to allow the dispensary to open. High Seas alleges the delay is costing them over $110,000 per month in fees and has not provided any legitimate reason in writing as to why they are withholding the final permit issuance
Blue Violets Cannabis Dispensary continues battle against non-profit Hoboken for Responsible Cannabis (HRC) who claimed the store's location was too close to schools, violating a local ordinance, and therefore is not permitted to open. Blue Violets lost a court case in September against HRC but filed a notice of appeal last week. HRC responded with a letter stating they would seek sanctions as well as attorney fees if the cannabis business did not withdraw its motion
Klutch Cannabis wants to buy 2.6 acres from Akron, OH to construct not a new drive-thru dispensary and headquarters with additional retail buildings that would be available for rent. The property is adjacent to the 68 acres the city sold last year for luxury housing
Cookies Melrose to relocate due to hefty rent increase
Lyfe Dispensary opens 8,000 sq ft dispensary with 120 parking spots in Rockford, IL
Nightjar to open in Bloomfield, NJ
The Hempire Co. had its adult-use and medical cannabis cultivation and production licenses suspended by the Nevada CCB over “suspicious” track-and-trace activity
🌱 Product
Headset launches Cannabis Brand Directory: the most accessible cannabis sales data portal. Anyone can now search through 1200+ of the top cannabis brands in US and Canadian markets and learn about total sales, market coverage, category participation, top products, competitive landscapes, recent growth, and more
Cookies launches in New York with distributor Highline Brands and packaging and co-manufacturing partner Final Bell
Kiva (Lost Farm) x Connected Cannabis launch multi state collab. Each state has their own exclusive flavor and strain pairing
Stone Road Cannabis launches in New Mexico with Stash House
OKAY Cannabis Dispensaries x West Town Bakery introduces Cannabis Infused, a chef-driven cannabis-infused take-and-bake cake mixes that include fast-acting THC
TILT partners with Flower by Edie Parker in Pennsylvania
Willie’s Reserve partners with Aardvark Industrees in Michigan
EVOL by Future x dompen vape launches in CA and NM, plans for OH and FL after
IPS Pharma partners with Grow Group to launch Vida Vapes, which will be the first legal, British-born brand of UK-formulated medical cannabis extracts. The brand will leverage hardware from Advanced Vapor Devices (AVD)
NexGen Sciences form strategic partnership with Polaris Cannabis for exclusive rights to use NexGen Sciences' proprietary technology in products for sale in California
Cronos launches Lord Jones® Ice Water Hash Fusions Pre-Rolls in Canada
🧔 People
MariMed CFO Susan Villare resigned effective October 31, 2023, 3 days prior to the announcement. The Board has appointed Jon Levine, President and CEO, as the Company’s Interim CFO
Shangri-La settles with UFCW by offering reinstatement to five employees and paying more than $145,000 to resolve 15 unfair labor practice charges
UFCW launches apprenticeship program for budtenders with Cannabis Place
Ascend Wellness settles lawsuit with former manager who sued the company alleging he was mistreated and fired because of his race recently
Glass House Brands adds Yelena Katchko, Partner at Katchko, Vitiello & Karikomi and former California Assembly Speaker John A. Pérez to Board
🎙️ Interviews
Jason Wild (TerrAscend) on cost-cutting, transitioning to adult use, and markets where he sees the most opportunity | mg magazine
A Harvest of Highs: Inside the New York Cannabis Awards Music Festival and Growers’ Showcase | Chronogram
Delta 9 THC Beverages at Total Wine | High Rise