🌰 Ohio Voter-Approved Legalization Measure Takes Effect (December 7th)
🌰 Ohio Voter-Approved Legalization Measure Takes Effect (December 7th)
HHS releases redacted recommendation documents. Alabama awards 20 licenses, 5 more awarded next week. Prelude $5.2M seed. Curaleaf exits Vermont. Trulieve redeems $130.0M 2024 Notes. CannaDataCon.
👩💼 Friends of the newsletter over at Pure Beauty are looking for a Controller, if you or someone you know is interested in the role, send a resume/note my way and I’ll send directly to CEO, Imelda Walavalkar
💬 A week after MJBizCon, it seems Cannabis is still in the air in Las Vegas. I had a productive MJBizCon and it was great to catch up with a lot of industry friends/subscribers. You’ve probably seen enough takeaways from LinkedIn so I’ll keep this one short—2018 MJBizCon felt like the peak of inflated expectations, 2022 MJBizCon felt like the trough of disillusionment, and this year’s MJBizCon feels like we’re on the slope of enlightenment (a Gartner Hype Cycle reference for those familiar)
💻 Also, thanks to everyone that continues to share Highly Objective with people in your network, it’s greatly appreciate and I hope you continue to do so (and reminder to do so if you’re still subscribed and haven’t yet shared with a friend to do so 😁)
🌿 Industry
Ohio Senate approves Bill to allow Cannabis sales from Dispensaries “Immediately,” keep home grow and expunge records. In a stunning reversal, Ohio’s GOP-controlled Senate passed a revised bill. — Marijuana Moment
Just days after the Senate General Government Committee advanced legislation to fundamentally undo key provisions of Issue 2—proposing to eliminate home grow and delaying legalization for at least one year until adult-use retailers started sales, for example—the panel dramatically walked back the measure and passed it in a unanimous bipartisan vote on Wednesday
The overhaul of the measure comes one day after the Senate panel held a hearing and received public testimony on the initial proposal, with many advocates and stakeholders expressing frustration with the seeming undermining of voters’ decision and recommending changes such as freeing up medical cannabis dispensaries to start servicing adult consumers while regulators develop rules to license recreational retailers
House members refused to take up the Senate bill and are currently debating their own bill to modify certain aspects of Issue 2, but have indicated that they are in “no rush” to pass anything
Presentations continue for 5 Alabama integrated facility cannabis licenses. Alabama’s Medical Cannabis Commission awarded 20 applicants last week and will award integrated facility licenses next Tuesday. — WTVY
Licenses are expected to be handed out 28 days after they have been awarded, so medical marijuana production could begin in early January
Enchanted Green sued AMCC over the new procedures. The company missed the cut this round, despite being awarded a license in the previous two rounds. While Enchanted Green had placed second in previous rounds of ”scoring,” it tied for fourth this round—with only four licenses available. This led the commission to draw an applicant’s name out of a bowl to decide who would win
Enchanted Green also alleged that commissioners indicated they had not read additional permit materials the company submitted as part of the third try
Feds Release 250+ Pages Of Redacted Documents On Cannabis Rescheduling Recommendation, Detailing Cannabis’s Medical Value. U.S. Health and Human Services Department (HHS) released a tranche of documents related to its recommendation and the detailed review it undertook on cannabis’s accepted medical value. — Marijuana Moment
The documents outline new scientific information that’s come to light in recent years subsequent to an earlier denial of a rescheduling petition, which HHS suggests might now necessitate rescheduling marijuana
HHS also notes that it “analyzed considerable data related to the abuse potential of marijuana,” but added that it’s a complicated consideration
Congressman Dave Joyce (R-OH) Files Cannabis Reclassification Bill Allowing Interstate Commerce, Tax Relief & More. The revised bill goes beyond decriminalizing state cannabis programs by proposing a federal tax-and-regulate framework for the cannabis industry. — Benzinga
In a significant development, Joyce has reintroduced the Strengthening the Tenth Amendment Through Entrusting States (STATES) 2.0 Act, signaling a renewed effort to end federal marijuana prohibition in states where it is legal
CannaDataCon (by Delta Emerald Ventures) returns to Miami Feb 1-2, 2024. The two-day, invite-only summit highlights technology’s essential role across hemp and regulated cannabis markets. The event will feature executives from Leafly, Jane, NABIS, Happy Cabbage, BLAZE, dispense, adaviv, Trym, Vangst and more. In-person access to CannaDataCon is exclusive and tickets can be requested here.
Michigan consumer and sales trends, the second largest U.S. market
California Q3 sales of $1.25 Billion, on pace for $5.2 billion in 2023, down (4.4%) Y/Y
Rhode Island estimates Fiscal Year 2024 sales of $76 million, $7 million in October
Arkansas medical cannabis sales surpass $1 billion since 2019 launch
New Hampshire Gov. Chris Sununu (R) this week introduced two non-negotiables to any adult-use cannabis rules in the state: a 15-store cap statewide and a ban on lobbying and political contributions by cannabis licensees
Desert Hot Springs will extend a temporary tax cut on cannabis cultivation for another six months, but held off making a permanent decision while its new city manager conducts more research
Missouri cannabis regulators extend temporary waivers for testing requirements
Ontario plans to increase retailers and affiliate cap to 150 from 75 today to help combat illegal cannabis stores
Australia exported 1,510 kg of Cannabis in 2022, up ~6% compared to 2021, with most of it landing in Germany. Cannabis inventory in Australia was 15,400 kg in 2022
Two Guernsey companies, 4C Labs and Pura Health, have partnered to import products from Canada to hub, then turn it into other products that can be sent to the UK and Europe (Germany, soon France, soon Poland, soon Ukraine)
💵 Deals
Prelude raises $5.2 million seed to build the first AI-powered supply chain solution for the cannabis ecosystem. The round was led by Rackhouse Ventures, an AI/ML focused investor, and Casa Verde. Prelude is built to drive action, not simply surface data. While Prelude is currently focused on unlocking value for the industry's retail layer—by helping dispensaries decide which products to buy and in what quantities in order to optimize inventory assortments and associated administrative costs—it plans to create the same value across the entire supply chain; from seed to sale
Zenbarn Farms buys two Curaleaf cannabis dispensaries in Vermont. The deal includes a medical marijuana dispensary in Bennington, a medical/recreational cannabis outlet in Montpelier and a greenhouse cultivation and manufacturing facility. Zenbarn plans to close the recreational side of the Montpelier dispensary. Vermont has a higher-than-average number of small cannabis growers with 70% to 80% of growing licensees considered “small cultivators” <1,000 sq ft of canopy
Trulieve complete redemption of all $130.0 million principal amount of its outstanding 9.75% senior secured notes due 2024. Cash used for the redemption was $136 million, which included the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest
BZAM acquires Final Bell Canada from Final Bell Holdings International for 90 million common shares of BZAM at a deemed price of $0.15 per share, representing approximately one-third of the issued and outstanding shares of BZAM. BZAM will also enter into a supply agreement under which FBHI's wholly owned subsidiary, 14th Round, will continue to provide industry leading child-resistant packaging, high-tech vaporization hardware, and pre-roll cones to BZAM
YourWay Cannabis terminates definitive agreement to sell Labtronix for $3 million. Last week, the Labtronix manufacturing location was visited by the fire department for a surprise inspection and was ordered to cease all extraction operations immediately until certain improvements are made to the facility. In direct response to this infraction the license holder that Labtronix was operating under pulled the license from the building requiring all operations of Labtronix to cease
CannMenus finalizes acquisition of Nugget Data. CannMenus provides retail analytics and Nugget provides insights. The merger to creates a company that covers 90%+ of all licensed dispensaries across the U.S. and Canada
Canopy Growth complete two sale transactions transferring the assets of BioSteel Canada and BioSteel Manufacturing for aggregate gross proceeds of $30.4 million
📄 Company Updates / Earnings
Curaleaf received conditional approval to list on the TSX. In connection with the TSX Listing, the Company intends to voluntarily delist its shares from the CSE
RIV Capital revenue of $1.7 million for Q3 2023, cash of $85.0 million
Cansortium Q3 2022 revenue up 14% YoY to $25.3 million, Adjusted EBITDA was $8.8 million, $12.1 million of cash and $60.3 million of debt
StateHouse Q3 2023 revenue of $25.5 million, Management continues to explore the potential sale of various non-core assets, which is expected to generate ~$7-10 million of non-dilutive capital
1933 Industries $18.3 million revenue in FY2023, up 46% from $12.5 million in FY2022. Net loss and adjusted EBITDA were a loss of ($14.0 million) and ($7.6 million), Cash was $1.1 million
POSaBIT Q3 2023 revenue was $13.6 million, up 32% vs Q3 2022, transactional sales for payment services totaled $157.9 million, up 11% vs Q3 2022, cash of $3.2 million. The Company is processing 75% of prior transaction volumes with an additional 100 locations expected to commence processing shortly
MariMed commences manufacturing and processing cannabis products in its new processing kitchen in Mt. Vernon, IL. After lengthy construction and regulatory delays, the Company expects that its award-winning products will be available at dispensaries in Illinois in time for the holidays. These include MariMed’s five Thrive Dispensary™-branded retail locations in Anna, Casey, Harrisburg, Metropolis, and Mt. Vernon
Jushi filed a preliminary short form base shelf prospectus with the securities commissions in each of the provinces and territories of Canada. The Shelf Prospectus, when made final and effective, will allow the Company to offer up to C$600 million of subordinate voting shares, preferred shares, subscription receipts, debt securities, convertible securities, warrants, and units, or any combination thereof, from time to time during the 25-month period that the Shelf Prospectus is effective
Filtrona launches Cannatrona brand. Filtrona, the global independent market leader in the design, testing and manufacture of special filter and pre-roll solutions, has brought its expertise to a new market with the launch of Cannatrona, its dedicated division serving the cannabis and hemp market. The Cannatrona business supplies innovation-driven filter tips, mouthpieces and pre-roll solutions for cannabis and hemp products, alongside scientific services
Bellarmine University launches cannabis education certificate through Green Flower. Through a partnership between Bellarmine’s Center for Community and Professional Education and Green Flower, the industry leader in cannabis education, four courses are available: Cannabis Business, Agriculture and Cultivation, Compliance and Risk Management, Healthcare and Medicine
🏬 Retail / Cultivation
AWH opens Sandusky, OH dispensary, its third in the State
Elevate Cannabis Dispensary in Mount Vernon, NY is the first recreational dispensary to open in Westchester County/Lower Hudson
The Smoking Bear opens first-ever cannabis dispensary in Gardiner, MT, just outside the federal lands of Yellowstone National Park
Planet 13 opens Waukegan, IL dispensary, just North of Chicago
The Station opens Fresno, CA’s 3rd dispensary, Cookies opens Dec. 17th
Native Sun Cannabis opens South Boston, MA dispensary
Higher Collective opens Hartford, CT dispensary, its fourth in Connecticut
GTI opens RISE Dispensaries in Tampa, FL and Crystal River, FL, its 13th in Florida
Curaleaf opens second dispensary location in Sarasota, FL its 61st location in Florida
Santa Monica adult-use sales set to start on December 14
Acreage completes infrastructure expansion at its facility in Egg Harbor Township, NJ. The multi-faceted cultivation and processing upgrades support the ongoing demand for products at both the retail and wholesale levels, as well as the broadening of the Company’s brand and product offerings in the burgeoning New Jersey market.
Pleasantrees reaches 200th Harvest, growing 212 unique strains of cannabis and not remediated a single gram of flower from its harvest
Cirrus Social Club social club has raised $1.5M to to provide a luxurious setting for Cannabis consumption and wants to open before 4/20/24
🌱 Product
Leafly choses Permanent Marker, an indica-dominant hybrid strain from Seed Junky Genetics, first introduced in 2022, as Cannabis Strain of the Year. Permanent Marker is the fastest-growing new strain in the U.S., according to Leafly data
Marquee Brands xCanopy Growth partners with Martha Stewart to launch new Sleep CBD, Chill CBD, and Extra Strength CBD Gummies
TICAL Official launches in Carlsbad, NM in partnership with Cave City Cannabis
Uproxx does full-line review of 710 Labs
🧔 People
4Front appoints Peter Kampian as CFO. Kampian was previously CFO of Algonquin Power and Utilities, CFO at Mettrum Health, which was later acquired by Canopy Growth, and serves as CFO at Electryon Power and Huxley Health
GTI Board Member Richard Drexler retires from Board. Drexler joined Green Thumb’s Board in 2022 and served as Chair of the Audit Committee. Following his departure, Richard Reisin will assume the role of Chair of the Audit Committee
Blinc COO Pete Sahani succeeds Arnaud Dumas de Rauly as CEO
Kaival Brands appoints James W. Dobbins as General Counsel. Dobbins previously served as General Counsel for Turning Point Brands (NYSE: TPB)
The head of Minnesota’s medical cannabis office is stepping down. The resignation of Chris Tholkes means that the state must now fill two vacancies for top marijuana regulators
MA State treasurer alleges inappropriate comments by cannabis commission chair. Treasurer Deborah Goldberg had suspended O'Brien with pay in September, without stating a reason. In the new court filing, O'Brien attached a copy of an October letter from Goldberg that contains a series of allegations. In it, Goldberg said an investigator hired by the commission concluded O'Brien had made "racially, ethnically, culturally insensitive statements"
🎙️ Interviews
Kanha: Still Bullish on Thailand | CBE
Jenna Goldring, The High Confectionary | Forbes
Why we’re (cautiously) excited about New York again | High Rise
Xzibit and Tammy the Cannabis Cutie | Here Weed Go!