📰 Ohio regulators approves 62 provisional dual licenses (31 dispensaries)
📰 Ohio regulators approves 62 provisional dual licenses (31 dispensaries)
Sanity Group raises €14M from Organigram. Cronos Group provides $51M Credit Facility to GrowCo. Curaleaf Launches Hemp Derived Product Line. CA State Fair to allow cannabis sales and consumption.
🌿 Industry
Ohio Regulators Issue Provisional Marijuana Licenses To Dozens Of Businesses, Readying Imminent Launch Of Adult-Use Sales. Ohio marijuana regulators have approved dozens of provisional licenses for existing medical marijuana operators to convert to dual-use licenses. — Marijuana Moment
The Division of Cannabis Control (DCC) has signed off on 62 provisional dual licenses for dispensaries, cultivators, processors and testing labs, just two weeks after regulators started accepting applications
Applicants that receive the provisional licenses must first prove that they’ve met various requirements. If they meet those standards, and when any inspection requirements are complete, applicants will be able to obtain a certificate of operation to begin dual sales
The first day of recreational sales could be this Friday, DCC officials have said
The California State Fair will integrate onsite cannabis sales and consumption, powered by Embarc. This historic action is a continuation of the California State Fair’s leadership on cannabis after legislation signed by the governor allowing for licensed cannabis events to take place. — California State Fair
The cannabis exhibition hall is packed with educational information about the state’s cannabis history and exhibits of top California brands and farms
Attendees can scan QR codes to learn more about products, add items to a virtual shopping basket and purchase them at Embarc’s on-site dispensary
The area will feature a 30,000 sq ft consumption lounge with an opportunity to try winning products from diverse farms and brands from across California
Pennsylvania Lawmakers Suggest Marijuana Legalization Could Advance Imminently, As Neighboring State Markets Add Urgency To Reform. Reps. Aaron Kaufer (R) and Emily Kinkead (D), as well as Sen. Sharif Street (D), gave a status update on the push for adult-use legalization in the Keystone State. — Marijuana Moment
Kaufer suggested that there was enough alignment between each chamber’s reform measures to move them “today,” or before a budget deadline this week. “Our goal is to get this done as soon as possible,” he said, adding that legalization is “part of the governor’s budget proposal”
A new report projects that the state would see up to $2.8 billion in adult-use sales in the first year of implementation, generating as much as $720 million in tax revenue and create upwards of 45,000 jobs
Tuatara Capital, L.P. to run Cannabis NYC Loan Fund to fuel social-equity program. The Fund is launching with an initial $2M loan tranche. — Morningstar
The fund is targeting $20M, or up to $30M, in capital, including about $9.4M from the city and an undetermined amount of money from Tuatara Capital
Tuatara Capital will also handle fundraising for the investment pool. New York City's Economic Development Corp. is also overseeing the fund
CT confronts controversy over cannabis cash and social equity. The first distribution of community reinvestment funds has prompted an unusual examination of the Social Equity Council and a turf war with urban legislators. — CT Mirror
The $5.2M in the initial 162 community reinvestment grants authorized last year was sprinkled among scores of churches, youth programs and other nonprofits in census tracts deemed to be “disproportionately impacted areas,” or DIAs, as measured by poverty and residents convicted of drug crimes
With a staff of a half dozen, the council outsourced the process for choosing recipients to six nonprofits with grant-making experience, roughly dividing the state into six regions and providing $1M for each one
The administration of Gov. Ned Lamont and legislators say they saw little overall strategy, nor were they clear on the criteria employed in choosing recipients
Turmoil at state Cannabis Control Commission (CCC) prompts call for receiver to run operations. The Inspector General of Massachusetts has called on the state's legislative leadership to appoint a receiver to run the CCC. — Telegram
Jeffrey S. Shapiro cited the concerns of "numerous parties" as to the daily workings of the commission
In his review of the state agency's structure, he found that, despite spending "considerable time and money seeking to clarify roles and responsibilities," and to determine structure and governance, the agency "does not appear to be any closer to resolving these issues"
Shapiro said there is "an urgent need" for the Legislature to "take immediate action" to authorize and appoint a "receiver with clearly delineated authority to manage the day-to-day operations" of the state agency
💵 Deals
Cronos Group provides $51M credit facility to Cronos Growing Company (GrowCo). The investment will be funded by an additional credit facility provided by Cronos and is intended to assist GrowCo’s expansion of its purpose-built cannabis facility to address the increased global market demand for high-quality cannabis flower. Cronos will provide a ~$51M secured non-revolving credit facility to GrowCo to fund facility expansion, enabling growth opportunities in the markets Cronos operates in today (Canada, Israel, Germany, the United Kingdom, and Australia) as well as enabling future growth into new markets that open. Cronos will have the option to purchase up to 70% of the total production from the expanded facility. The terms of the CAD$105M credit facility that Cronos previously made available to GrowCo remain unchanged.
Organigram Invests €14M in Sanity Group. Using proceeds from its Jupiter strategic investment pool, the Company has agreed to invest €14M (~ $15M) initially comprised of €11.5M via an unsecured convertible note and €2.5M to purchase equity interests from existing Sanity Group founders and shareholders. In addition, the Company may advance another €3M (~ $3.2M) as a second tranche of the unsecured convertible note for future opportunities to be pursued by Sanity subject to the satisfaction of certain conditions. Sanity has over 2,000 pharmacies in its distribution network and works with ~5,000 physicians in Germany. Sanity currently holds a ~10% share of the German medical cannabis market where its medical brand, avaay, is estimated to hold the #2 position.
Blüm Holdings completes sale of Blüm Santa Ana, ~$44.5M in debt elimination through $24.8M of total consideration. On June 10, 2024, Unrivaled Brands, a wholly owned subsidiary of Blüm Holdings, completed the sale of its controlling membership interest in People’s First Choice (PFC) to Haven Nectar for $24.8M ($9M cash, $15.8M assumption of liabilities). PFC owns and operates a cannabis retail dispensary campus in Santa Ana, California named Blüm Santa Ana. All of the cash generated in the Disposition was used to settle debt and litigation. The transaction has extinguished an estimated $44.5M in liabilities, reducing Blüm Holdings' total debt by over 55%.
Good Day Farm raising $65M. Some executives and financial backers of Good Day Farm are affiliated with an Arkansas company aiming to raise $65.6M to invest in Louisiana’s medical cannabis market and other locations. The first sale on May 10 and had raised $48.1M from 111 investors by May 23.
📄 Company Updates / Earnings
Verano Files Court Response Seeking Full Trial and Rejecting Goodness Growth Holdings’s Damages Claim. Verano is seeking dismissal of Goodness Growth’s request to have the Court determine the highly fact-driven lawsuit by summary determination which would deny Verano due process and the fairness afforded by a full trial on the merits of the case. While Goodness Growth’s filings with the Court may have been fit to bolster Goodness Growth’s public statements and press releases, Verano considers Goodness Growth’s application to the Court to be no more than an effort to sway public opinion and put forward a baseless and irresponsible damages calculation in an attempt to create false hope for its investors.
ACTIVE (Next Level Ventures) claims Shenzhen Smoore Technology has been waging a years-long battle to unlawfully restrain competition in based on false patent claims. The saga began in 2021, when Smoore filed a complaint with the U.S. International Trade Commission (ITC), accusing 38 U.S.-based companies that it marketed vaporizer devices to (including Next Level) of violating trade law by importing products that infringed on its patents. In its counterclaim, ACTIVE pointed out that vaporizer technology claimed by Smoore was “displayed and offered for sale” as early as the 2016 Marijuana Business Conference & Expo (the predecessor to MJBiz’s MJBizCon). That happened before Smoore filed for patent protection.
FundCanna has approved ~$287 million in loans to ~2,000 cannabis loan applicants over the past three years, seeing a default rate of slightly more than 2%.
Aurora Cannabis Q4 FY 2024 Net Revenue increased 5% YoY to $67.4M, Global Medical Cannabis Net Revenue Grew by 20% YoY to $45.6M. Adjusted EBITDA was $1.9 M, Net loss from continuing operations was ($20.8M), cash position of ~$180M with cannabis business debt-free.
Body and Mind Q3 2024 Revenue of $4.4M, Net Operating (Loss) of ($1.3M).
🏬 Retail / Lounge
GTI Grows its Retail Footprint in Florida with the RISE Dispensary New Port Richey, its 17th Retail Location in the Sunshine State. RISE Dispensary New Port Richey is the third RISE Dispensary to open in Florida this year, following the opening of RISE Dispensary Dunnellon and RISE Dispensary Wesley Chapel.
Verano Expands Florida Retail Footprint to 77 Dispensaries Statewide with MÜV Naranja and MÜV Port Richey. MÜV Naranja bolsters the Company’s retail presence in Miami-Dade County, the state’s most populous region with more than 2.7 million residents. MÜV Port Richey is the Company’s second retail location in Pasco County, one of Florida’s fastest-growing regions with over 561,000 residents.
Ascend Wellness opens Wharton, NJ dispensary. Spanning ~3,000 sq ft, the location features 13 sales terminals, six kiosks, two on-site ATMs, spacious parking and a drive-thru. Ascend also opened its fourth dispensary in Pennsylvania (Cranberry, PA). The ~2,000 sq ft dispensary is conveniently located near I-76 and I-79 and offers patients in the greater Pittsburgh area.
Klutch Cannabis has been awarded two new Provisional Dispensary Licenses from the Ohio Division of Cannabis Control, one each in Cuyahoga and Summit Counties. The award stems from the settlement of three dispensary application appeals originally filed against the Ohio Board of Pharmacy and marks the end of almost 6.5 years of litigation for the company.
Wellgreens opens in Encinitas, CA. Wellgreens is the city’s second licensed dispensary and the company’s sixth location in San Diego County.
California's largest cannabis store is a living nightmare. SFGATE cannabis editor Lester Black takes an opinionated look at Planet 13.
New York City’s new luxury cannabis stores are works of high art. Illegal, slapdash dispensaries have taken over the city. Now, a new breed of high-design shop (The Travel Agency, Gotham) is looking to change the way people buy cannabis.
West Hollywood’s Newest Cannabis Lounge Pairs Infused Beverages with Sultry Vibes. Private Reserve from Off The Charts (CA, NM, OH) serves dried flower and cannabis-infused drinks in a futuristic-looking space.
🌱 Product
Curaleaf Launches Hemp Derived Product Line and New Direct to Consumer Ecommerce Marketplace. Curaleaf launchs all-new line of hemp-derived THC products under the Company's Select and Zero Proof brands. Products will be available to order via the Company's online storefront, TheHempCompany.com, Curaleaf's new home for all fully Farm Bill compliant hemp derived products. Additional distribution will include strategic partnerships through conventional retail and on-demand delivery in partnership with DoorDash. TheHempCompany.com will also partner with top-tier 3rd-party hemp brands to offer additional products that adhere to Curaleaf's standards.
Grön x Standard Wellness to launch in Ohio. The Ohio debut will feature the Grön Sugar-Coated Pearls. In August, Grön’s MEGAs will also become available in Ohio, featuring eight flavors and ratios.
Airo x Sunderstorm to Expand in CA. This partnership will expand upon Airo Brands' existing California footprint, increasing its distribution access to additional licensed retailers in CA. Sunderstorm's sales and field team consists of 12 key account managers, 8 field marketing members, and a distribution infrastructure that includes hubs in the Los Angeles and San Francisco metros, along with a modern fleet of 16 GPS-tagged, climate-controlled trucks.
The Fred Segal x Hemper Line For Chic Cannabis Enthusiasts. The Hemper x Fred Segal collection includes a variety of products such as a beaker bong, bubble bong, peace pipe, ashtrays, and more. Each piece embodies Fred Segal’s signature style while incorporating Hemper’s craftsmanship to not only meet the high standards of both brands but also appeal to a wide audience that values design and quality in their smoking accessories.
Springbig x Greenline (BLAZE) integration. The integration streamlines the checkout process with a deeper, 2-way integration, making it easier for customers to earn and redeem rewards at the POS or from their mobile device.
🧔 People
Acreage Holdings appoints Rebecca Kirk as COO. Kirk joined Acreage in 2019, following the acquisition of Oakland, CA-based CWG Botanicals, a company she founded. Kirk has served as President and CEO of multiple vertically integrated cannabis operations in California.
Charlotte's Web appoints Erika Lind as CFO, replacing Jessica Saxton, who has resigned. Erika Lind joined Charlotte's Web in 2023 as VP FP&A and Treasury. Lind came to Charlotte's Web with previous stops at Made in Nature, Celestial Seasonings, Orica USA, Hammond's Candies, and Spectra Logic.
🎙️ Interviews
CT cannabis equity program hits road bumps | CT Mirror
Dan Ahrens discusses MSOS ETF and Cannabis Market Trends | TDR
Optimizing Assets with The Cannabis Company CEO David Hart | Higher Exchanges