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🍊 Planet 13 acquires VidaCann for $48.9M to accelerate FL footprint (+26 dispensaries)
Hancock sues Trulieve over MD payments. MO lottery drawing for 48 microbusiness licenses. NY OCM misstep voids exemption for up to 30 CAURD licensees. OR temporarily blocks aspergillus testing.
🎙️ Latest Highly Objective Podcast with Sunderstorm CEO Cameron Clarke
Town leaders initially agreed to help what was then—Harvest— secure a medicinal marijuana license in exchange for 4.99% equity and rental of the old manufacturing facility
Hancock has received a total of $703,193.96, with its largest payment of $500,000 made in July 2021
During one of the town’s prior negotiations, a former mayor said, Hancock pushed for $50,000 in annual payments. Payments of $50,000 were made in July 2021 and March 2022
Missouri lottery drawing for the first round of microbusinesses wholesale and microbusiness dispensary was conducted Monday, August 28, 2023. A total of 48 microbusiness licenses will be issued no later than Oct. 4. — Missouri DCR
Lottery results are identifiable by applicants on the DCR's website
Six microbusiness license applicants will be selected within each of the eight Missouri congressional districts. Of the six in each district, two will be microbusiness dispensaries, and four will be microbusiness wholesale facilities
Another Office of Cannabis Management misstep costs 30 cannabis businesses a chance to open. An Ulster County judge said he will not exempt any CAURD licensees from an injunction he issued on Aug. 18 because the Office of Cannabis Management failed to comply with a court order. — Syracuse.com
In a hearing at Ulster County Courthouse last Friday, the judge appeared to exempt at least 23 of 30 CAURD businesses that OCM officials said met the judge’s requirements
Plaintiffs (four service-disabled veterans who intend to apply for dispensary licenses) in the case objected to the exemption on Friday, citing discrepancies in the list of 30 businesses
“It is not clear to this Court whether any of the thirty identified licensees have completed all post-selection requirements and inspections and it should be clear that those who have not, should not have been included on the list submitted to the Court as set forth in the prior Order” said Judge Kevin Bryant
Oregon Court of Appeals temporarily block testing requirement for aspergillus. Growers argued Oregon’s zero-tolerance rule on aspergillus threatened to put them out of business. — KOIN
This pause on the aspergillus testing law goes into effect immediately, and it is no longer required as compliance for cannabis farmers for the foreseeable future
Alabama Medical Cannabis Commission (AMCC) licensing pause to continue until hearing next week. Attorneys for the AMCC said the commission will vote to stay the licensing process at their meeting this Thursday. — CBS 42
Lawyers for one of the company suing, Alabama Always, say they’re encouraged by a third round of awards, done in the open
Verano’s CEO also sent a letter to Gov. Kay Ivey saying they are “ready, willing, and able to invest at least $40 million in Alabama”
Verano was originally awarded a license during the first round of decisions, but those licenses were later voided by the Commission when it discovered “flaws” within its scoring process. After the re-grades, and after the Commission decided to allow commissioners to each nominate their favorite company – yet another wholesale change in the selection process – Verano was denied a license
New Jersey’s cannabis industry is in a ‘doom loop,’ trade group says. The New Jersey Cannabis Trade Association issued a report placing blame for the state’s slow growth on the Cannabis Regulatory Commission (CRC). — The Philadelphia Inquirer
The CRC has received 2,177 applications since it opened up the process for marijuana business licenses in December 2021. Of those, 1,399 applications have been approved, and about 400 are being processed
Today, the state has 37 operating recreational cannabis dispensaries, and 13 that sell only medical marijuana. The state expects to have 50 recreational dispensaries operational by the end of 2023; it started with 12 adult-use retailers in April 2022
According to the CRC, recreational marijuana has generated ~$306M in sales and $18.8M in sales tax revenue in the first two quarters of 2023 combined. The NJCTA projects that legal Cannabis sales could bring in about $38.4M in taxes this year—far below other states of similar sizes with legal sales
Missouri cannabis recall may leave Springfield producers with steep bill, dispensaries without vault space. Springfield-area cannabis producers could be responsible for replacing hundreds of thousands of dollars’ worth of products for their customer dispensaries. — Springfield Daily Citizen
Elkland-based Bison Infused, which sells to the majority of dispensaries in Missouri, has about $200,000 worth of product in “quarantine,” or locked in their vault according to the recall’s guidelines
If the regulator ultimately says those products have to be destroyed, Bison will find itself financially responsible for not only those products, but also all those in quarantine at all their customers’ dispensaries
Kansas City-based CLOVR Cannabis, the largest manufacturer in Missouri that has products in many Springfield dispensaries, has $1.25M worth of distillate on hold under the recall
Across the entire state, the recall has affected more than $30M
4 Things You Can Do to Move Your Business Forward Right Now. The combination of local government blunders and federal government inaction, crippling levels of taxation, and an illicit market that largely operates with impunity has mired legal operators with challenges. — mg magazine
#1 Ruthless cut costs, #2 Collect what you’re owed, #3 Monitor the creditworthiness of your partners, and #4 Adopt a smart tax strategy
Arkansas medical cannabis sales hit $23.2M in July
Mississippi medical sales of $4.4M in July
Planet 13 Holdings to acquire VidaCann for $48.9M (26.1% pro forma ownership). This accelerates the company’s Florida expansion strategy with VidaCann adding 26 dispensaries to Planet 13’s four leased dispensary locations in Florida. The $48.9M consideration consists of 78,461,538 shares ($0.51/share as of August 25, 2023), $4M cash and $5M of promissory notes.
Glass House Brands raised $10.9M of $15M Offering. Holders of the Series D Preferred Stock will be entitled to an annual cash dividend at a rate of 15% for the first five years after the date of initial issuance of Series D Preferred Stock and 20% annually thereafter.
Big Plan Holdings partners with Evelyn Capital to acquire Ascend Wellness Holdings' 1.25 acre, Monaca, PA Location. The acquisition of the tenant retail building located in Monaca, Pennsylvania, totaled $3.25M.
Medigrowth Australia raises $3.44M in crowdfunding campaign. Medigrowth has posted average monthly growth of 30% over the last 12 months, and is collaborating with Deakin University to find plant-based alternatives to improve the quality of life for patients with neurodevelopmental challenges. As well as being involved in clinical trials investigating CBD and pediatric autism, Medigrowth is looking at clinical interest in advanced oncology care and mental health related indications. The biotech distributes medicinal cannabis, including THC, CBD and dry cannabis flowers, to customers nationwide. Earlier this year, the Geelong-based company also launched Haiku Health, a direct-to-patient telehealth platform providing Australians with seamless accessibility to plant-based medicine prescription consultations.
📄 Company Updates
Parallel (Goodblend) Dissolution ordered over $5.8M Debt. All assets of Goodblend Pennsylvania LLC, if any, shall be distributed among the creditors (IIPR) and members.
Clever Leaves Declared Carbon Neutral. Clever Leaves generates just 16 kilograms of CO2 compared to traditional "indoor" cultivation methods that generate up to 2,300–5,200 kilograms of CO2 per kilogram of dried flower.
RIV Capital still anticipates that it is on track to enter the adult-use wholesale market in Q4 2023, with a first retail dispensary expected to open by January 1, 2024, followed by two additional retail dispensaries expected to open on or around July 1, 2024. Etain continues to optimize its wholesale channel for anticipated entry into the Adult-Use market later this year. The company has $90.7M of cash as of 6/30.
POSaBIT Q2 revenue was $13.5M, up 64% Y/Y, Gross profit was $2.7M (20% GM), Adjusted EBITDA was $(2.2M), cash of $4.0M.
Cansortium Q2 Revenue up 9% Sequentially and YoY to $24.4M. Florida revenue increased 11% to $20.1M. Adjusted gross profit increased 5% to $15.8M (64.6% GM). Adjusted EBITDA was $8.6M compared to $10.2M, with the decrease primarily driven by increased SG&A related to new store openings that are still ramping. Cash flow from Operations was $4.8M, $8.8M of cash and $59.3M of total debt.
Red White & Bloom Q2 revenues of $21.9M, Gross Profit was $6.9M (32% GM), and Adjusted EBITDA was $0.3M.
SLANG Worldwide Q2 revenue of $8.4M, down from $9.9M revenue in Q2 2022. GM of 52% GM, up from 43% GM in Q2 2022. EBITDA of $(1.2M), $10M cash.
Chalice receives $3M bid for all of the cannabis company’s Oregon assets.
Lowell Farms will consolidate shares on a 1:10 basis, effective August 31, 2023.
Embarc selected for only San Bruno license, could open by February 2024.
Megan's Organic Market opens fourth location and the first licensed cannabis dispensary in El Centro, California.
Botanical Sciences approved to operate its dispensaries in Chamblee, GA and in Stockbridge, GA. This will mark four dispensaries for the company.
Cansortium opened its 33rd medical cannabis dispensary in Florida and 36th dispensary nationwide.
Surfside launches commerce media platform nationwide. This allows dispensaries to monetize space that previously didn’t generate revenue, and brands/advertisers get to reach in-market cannabis shoppers when they’re low in the funnel.
Wyld is now available across Missouri.
Wherehouse Beverage Company, makers of WYNK and COUNTDOWN THC beverages, hire two key executives. Sol Clahane joins as Chief Commercial Officer—Sol is the founder of Boardroom Brew Beverage Consulting and former board member of Storz and Bickel. During her time at Canopy Growth, Sol oversaw all commercial operations and brands available in the U.S. market. Phil McFarland joins as GM, THC Beverages—Phil most recently served as VP of Strategic Business Transition at Canopy Growth, supporting the development and growth of Canopy USA and its portfolio of brands.
Jason Wild details how TerrAscend became a TSX trailblazer | MJBizDaily
Kyle Sherman CEO Flowhub | Proud to Work in Cannabis
Grön CEO Christine Smith | Cannabis & Tech Today
Fruqan Mouzon, Fox Rothschild, NJ Cannabis | The Presumption of Innocence
A Cannabis Dispensary’s Journey Birthed from Miscarriages | Cannabis Regulator
Megan Dobro, SafeTiva Labs | Riderflex
Annu Khot, Socíale | Times of India