🏦 Planet 13 potentially out $21.5M in funds held by cash management services provider
🏦 Planet 13 potentially out $21.5M in funds held by cash management services provider
Snoop Dogg is "giving up smoke." Trulieve employee‘s death is U.S. Cannabis industry's first reported occupational asthma death. GA grants four additional Class 2 licenses. Organigram CFO departs.
🌿 Industry
Snoop Dogg says he's "giving up smoke"
Planet 13 provides update regarding access to certain cash accounts. The company is potentially out ~$21.5 million from funds held at BridgeBank and two additional accounts.
On June 20, 2021, the Company engaged El Capitan Advisors for cash management services. One of the Company's accounts managed by El Capitan was held at BridgeBank, a division of Western Alliance Bank (WAB)
Pursuant to a dispute unrelated to the Company, Casa Verde obtained a $35.0 million default judgment against El Capitan. Casa Verde then levied that judgment against El Capitan causing ~$5.5 million of the Company's funds held at WAB and managed by El Capitan to be directed to the Orange County Sheriff's Office on September 21, 2023
On or around October 24, 2023, the Company became aware of the levy against the WAB Funds and thereafter filed a third-party claim of exemption asserting rightful ownership over the WAB Funds. On November 17, 2023, the Company filed a pleading in further support of the WAB Claim and a hearing regarding the WAB Claim is currently scheduled for November 30, 2023
After filing the WAB Claim, the Company took immediate action to withdraw the remaining $16.0 million that the Company held in two additional Company accounts managed by El Capitan. The Company was initially informed by El Capitan that the Additional Funds were being wired to the Company in due course. However, on November 14, 2023, El Capitan informed the Company that due to issues in connection with the Casa Verde judgment the wire was not able to be processed
Since November 14, 2023, El Capitan has refused to honor the Company's further withdrawal requests with respect to the Additional Funds and at this time it is unclear whether the Additional Funds will be returned. Based on discussions with El Capitan to secure the withdrawal of the Additional Funds, the Company has reason to believe that the Additional Funds may have been misappropriated by El Capitan
Trulieve employee‘s death is U.S. cannabis production industry's first reported occupational asthma death. — CDC
The federal report states that allergic diseases such as asthma are a growing concern in the U.S. cannabis industry. The report said the worker's death "illustrates missed opportunities for prevention, including workplace exposures, medical surveillance, and treatment according to the current asthma guidelines"
The report cites studies that identify respiratory hazards in the cannabis cultivation and production industry, such as microbial and plant allergens. The report also states that chemicals such as pesticides and allergens specific to the cannabis plant itself can be a hazard
Georgia Access to Medical Cannabis Commission granted provisional licenses to four more companies to produce low-THC oil. The licenses will go to Fine Fettle GA, TheraTrue, Nature’s GA and Treevana Wellness. — WABE
The companies will have access to Class 2 licenses, allowing them to grow cannabis in 50,000 square feet of indoor facilities only for producing low-THC oil
The new licenses come as the court challenges over the selection process continue
Dozens of Cannabis Startups are struggling to get fully licensed in Connecticut. There are currently 55 cannabis companies with licenses pending as of Nov. 1, with 40 of those businesses having received their provisional license, which gives companies more than a year to get operations up and running. — Hartford Business
But just 10 companies — seven dispensaries, two growers and a delivery service — have fully active licenses, and are either operational or about to come online
Most businesses currently operating in Connecticut’s cannabis industry are owned or partially backed by companies that were active in the state’s medical marijuana market (Curaleaf, Verano Holdings, Fine Fettle)
MSOs currently own the majority of the state’s 27 existing cannabis dispensaries, and all four grow facilities
Benzinga publishes fake interview with Berner, retracts story due to external unpaid contributor’s content could not be verified & does not meet editorial standards.
Judge orders massive mediation session to try and resolve multiple Alabama Cannabis Commission lawsuits
Missouri Division of Cannabis Regulation is revoking the manufacturing license of Delta Extraction after accusing the company of illegally importing “marijuana product” from out-of-state and adding it to Missouri-grown marijuana products
Seniors are one of the fastest-growing populations of cannabis users in the U.S.—going from 0.4% of people age 65 and older in 2007 using cannabis in the past year to ~3% by 2016 to more than 8% in 2022
Detroit approved 37 applicants for licenses—15 retail non-equity licenses & 15 retail equity licenses and 2 equity microbusiness provisional certificate
Headset takes a closer look into Ohio, which has 107 dispensaries currently and Average Number of SKUs per retailer
Texas has no plans to expand the state’s medical cannabis program, but the Department of Public Safety (DPS) has received 132 applications during an application window that ran from January 16 through April 28
Cannabis Media Council took over Pornhub ad placements for 24 hours period in U.S.
University of Mississippi plans to offer Master of Science in Dietary Supplements and Medical Cannabis
Maryland October revenue of ~$90 million, just short of $91 million in September
Colorado October revenue of $128 million, down $20 million+ vs October 2022
Connecticut October revenue of ~$25 million
💵 Deals
Canopy receives approval from the Ontario Superior Court of Justice for two transactions to sell all or substantially all of the assets of BioSteel
dosist has been acquired by longtime partner Final Bell. Final Bell acquired the intellectual property of the brand and assumed its debt. Final Bell’s subsidiary 14th Round has been the exclusive hardware and packaging manufacturer for Dosist since its founding. No cash was exchanged in the deal. Final Bell plans to expand the brand to New York this month as well as Florida, Canada and potentially Europe
Rainbow, Sweet Leaf Madison Capital and MJ Real Estate Investment Trust closes senior mortgage secured by a highly advanced cannabis cultivation and processing property in Hudson Valley, New York. The Property is a partnership between Pura, a seasoned California operator and Hepworth Farms, a 7th-generation New York based agricultural business operator. Hepworth Pura’s brand portfolio includes Old Pal, Jetty Extracts, Smokiez, Miss Grass, Cookies, and many others. Hepworth Pura has partnered with Final Bell to advance its execution on high-throughput manufacturing and launch of products into the market
Unrivaled Brands entered into various Non-Binding Letters of Intent to roll-up 11 operating retail dispensary entities, 4 cultivation operations, and 1 manufacturing facility which includes a commercial kitchen and distribution hub that could add $60–$80 million in total combined revenue annually
📄 Company Updates / Earnings
Trulieve cash flow from operations of $93 million and free cash flow of $87 million
Curaleaf revenue of $333 million, up 2% Y/Y and adjusted EBITDA of $75 million, cash flow from operations of $47 million and free cash flow of $33 million
Cresco Labs revenue of $191 million (49% GM), down (3.8%) Q/Q, Adjusted EBITDA of $49 million (26% margin), cash of $113 million, debt of $385 million and $18 million mortgage loan
The Cannabist Company revenue of $129.2 million, flat Q/Q and down (2.6%) Y/Y. Adjusted EBITDA of $20.5M (15.9% margin), flat from $20.3M (15.7% margin) in Q2 2023. The Company ended the quarter with $60.3 million in cash
AYR Wellness revenue of $114.4 million, up 5% Y/Y, $20 million of Operating Cash Flow, cash of $72.8 million, debt of $437.2 million
Jushi revenue of $65.4 million, down (1.6%) Q/Q, 43.6% GM vs. 38.1% in Q3 2022, Adjusted EBITDA of $9.7 million, cash of $30.5 million, $226.4 million of debt. CEO James Cacioppo also waived his salary increase of $100,000 and annual bonus entitlement of $850,000 in exchange for a lump sum cash payment of $212,500 and $1,150,000 aggregate principal amount of 12% second lien notes
Acreage revenue of $56.5 million, down (2.8%) Q/Q, 38% GM. Adjusted EBITDA was $6.6 million. $15.1 million of cash, $234.7 million of debt
Schwazze revenue of $46.7 million, Adjusted EBITDA of $14.1 Million (30% margin), cash of $19.6 million, debt of $155.1 million
Planet 13 revenue of $24.8 million, down (3.3%) from $25.6 million vs Q3 2022. GM of 44.7% due to reduction in product discounting% of revenue, up from 41.2% vs. prior year period. Adjusted EBITDA of $0.2M. Cash of $36.8 million
Goodness Growth revenue of $24.7 million, up 44.0% YoY and 28.2% sequentially
Glass House Brands revenue of $48.2 million, up 71% from $28.3 million in Q3 2022 and up 8% sequentially from $44.7 million in Q2 2023
TILT revenue increased 10.0% to $44.6 million (17.9% GM). $2.8 million of cash, notes payable was $53.5 million
Gold Flora revenue of $32 million and Gross profit was $11.3 million (35% GM), Adjusted EBITDA loss was $1.7 million. Cash and cash equivalents totaled $32.3 million as of September 30, 2023
Canopy revenue of $70 million (34% GM), Adjusted EBITDA loss was ($12 million), net debt balance of ($411 million)
Leafly revenue of $10.6 million, down from $11.8 million in Q3 2022, with retail accounts down (21%) to 4,466. Adjusted EBITDA loss of ($0.2) million. Cash of $14.5 million
Springbig revenue of $6.9 million, down 5% year-on-year
Ispire revenue increased 59.1% to $42.9 million (16.1% GM down from 17.8% GM). Cash of $25.7 million
Hydrofarm net sales decreased to $54.2 million vs $74.2 million in Q3 2022
Safe Harbor Financial revenue of $4.3 million with Loan Book value of $42.2 million. $8.9 million in cash
4Front reschedules release of Q3 2023 results and conference call due to delays related to the Company's audit
The Bettering Company now holds a conditional manufacturing license in New Jersey to make edibles, with plans to start selling in the Garden State in 2024
Green Flower partners with Cal State East Bay for cannabis education courses
Cann plans to sell 9 million+ cans (~$36M in revenue) and reach profitability in 2024
FundCanna partners with National Cannabis Industry Association (NCIA) to cover the NCIA membership costs for their next 100 customers, a $100,000 value
🏬 Retail / Lounge
Verano opens MÜV North Miami-Biscayne, the Company’s 2nd Miami Dispensary and 73rd Florida Location
Stiiizy opens 33rd store (30th in CA) in Corona, CA. In the past 6 months, the company has also won licenses and scored #1 in each of the cities below: Hawthorne, Artesia, Lynwood, Cudahy, and Indio
Cookies debuts Cannabis Genetics in New Mexico, First Flagship Location to Open Nov. 18 in Albuquerque. With a 47,000 square foot energy-efficient, state of the art cultivation facility attached, the dispensary will showcase the brand’s award-winning suite of products across its new 3,000 square-foot retail space
NuVue opens eighth location in Cortez, CO. Next up is an outpost in Gunnison. And soon, the company will make its first out-of-state expansion, with new stores in Albuquerque
The Cannabis Place opens first service-disabled Veteran and Latino-owned dispensary in Jersey City, NJ
Sol Flower opens Tucson, AZ dispensary, marking its 4th dispensary opened in the last two months
Dazed Cannabis opens Union Square location, the company’s second location after opening their Holyoke, MA location in August 2021. Dazed plans to open four more dispensaries within the next year throughout the Eastern Seaboard
Maui Grown Therapies opens its fourth dispensary in Kīhei, which will be Maui’s eighth dispensary and the 25th retail dispensary for the state
NuEra Cannabis plans to be second dispensary opening in DeKalb, IL in Q1 2024
Santa Monica’s two dispensaries expect to convert to adult-use in December/Q1 2024
West Hollywood’s first cannabis consumption lounge the Original Cannabis Cafe (formerly Lowell Cafe) reopened after a three-year closure
Thrive Cannabis Marketplace plans to open Las Vegas’ first regulated cannabis lounge, Smoke and Mirrors, later this year
Royal Queen Seeds launches first dedicated retail space in the U.S. market within The House of Cannabis (THC NYC)
🌱 Product
Hempacco x Ispire sign five-year exclusive manufacturing and supply agreement for vapes, beginning with an exclusive vape line from Snoop Dogg, Dogg lbs. Earlier this year, Hempacco launched Dogg Lbs hemp-derived CBD and Delta-9 infused gummies
Heavy Hitters launches Energy Elixir with 100mg of THC, 25mg of THCV, & 100mg of Caffeine and Sleep Elixir with 100mg of THC, 50mg of CBN, & 100mg of L-theanine
AYR dispensaries now carrying Kiva Camino Gummies in Florida
Rose launches new gummy that was created in collaboration with Virgilio Martinez, the Peruvian chef behind Central, which was ranked the best restaurant in the world this year. The gummy, dubbed "Magical Grapes," is a Turkish delight made with California-grown Shinano Smile grapes and contains 2.5 milligrams of THC
KANHA products debut in cannabis dispensaries across Thailand this month. Products for the Thai market include edibles, vapes and pre-rolls, which are all cultivated, produced and tested within the country. This comes as Thailand’s new government is seeking to tighten control over the country’s 6,000+ dispensaries
Embarc x Weed for Warriors to distribute free cannabis products to veterans
Dr. Greenthumb’s launches in Arizona with The Flower Shop and will be available at dispensaries in Phoenix, Ahwatukee and Mesa prior to release statewide
Method Man's TICAL launches in Rhode Island
Pharma Girl Cannabis World partners with Standard Wellness to launch high LOVR, a THC-infused intimacy oil in three states
Tilray Brands expands Cannabis Beverage portfolio with new THC, CBG & CBD Drinks
Texas Original launches 30 mg THC blueberry lemonade gummy in Texas
Treez launches TreezPay 2.0 and Treez Headless eCommerce
Jane Technologies x Onfleet integration allowing for automated Onfleet task dispatching for Jane POS delivery orders, functionality to auto-assign tasks to specific drivers or teams, seamless order flow management through Ecommerce → POS → Onfleet, consistent communication of delivery updates to customers
Sorting Robotics launches Stardust, the world’s first automated kief coating robot. In response to the escalating demand for precision and efficiency in the production of ‘fuzzy’ style joints, blunts, and straight-tube pre-rolls, Stardust is designed and engineered to bring automation and consistency to this specialized segment
Illicit Gardens sweeps 'Best of KC' Awards, winning in three Cannabis categories. Fig Farms wins Solventless Concentrate Category in High Times Cannabis Cup Illinois
🧔 People
Organigram Chief Strategy Officer Paolo De Luca has been appointed interim CFO after Derrick West resigned as CFO in order to take time to focus on his health and recovery following surgery later this month
YourWay Cannabis Brands CEO and Chairman, Jakob Ripshtein resigned from his positions and as a result, Brett Mecum, a current Board Member was appointed as the Chairman of the Board
🎙️ Interviews
It's a New Era with Hirsh Jain | Here Weed Go!
Q&A with The Flower Shop’s Greta Brandt | MJBizDaily
AYR Wellness Earnings Review | Higher Exchanges
Verano Earnings Review | Higher Exchanges
Cannabis stocks are mispriced options | Cannabis Investing Network
Azuca Expands Its Reach & Product Offerings | CBE