🗣️ Rumors persist on rescheduling decision
Stash Ventures acquires Cloud Cannabis dispensaries. nuEra Cannabis acquires Ieso. Curaleaf International acquires Can4Med. Avextra closes €20M round. STIIIZY's new CFO. Aurora completes MedReleaf acq
🌿 Industry
Biden Administration Official disputes rumors of Imminent Marijuana Scheduling Decision amid Heightened Speculation. Industry stakeholders and cannabis journalists have been speculating about a decision — Marijuana Moment
One of the most circulated examples came from Adrian Snead, a Partner at Porter Wright Morris & Arthur and former staffer of Sen. Jeff Merkley (D-OR) who helped craft a congressional cannabis banking bill
Adrian Snead has since clarified that it was more of a question and the Linkedin post had gone viral by the time he left a meeting and came back to edit but “stand[s] by the information and the sources. The timing didn't work out. This shit, unfortunately, happens more frequently than people think”
Federal judge thwarts effort to stop New York licensing. The ruling stems from a lawsuit by a pair of entrepreneurs who argued that New York’s licensing rules unfairly discriminate against out-of-state residents — POLITICO
Northern District of New York Judge Anne Nardacci rebuffed their arguments, concluding that more harm would come from impeding the rollout of the state’s adult-use market
“The balance of equities tips in Defendants’ favor,” Nardacci wrote, noting that thousands of cannabis entrepreneurs have made significant investments in seeking to win business licenses
What Percentage of Americans Smoke Cannabis? 17% of Americans in 2023 reported they smoke cannabis, similar to the 16% found in 2022 but higher than the 11%–13% range recorded from 2015 to 2021 — Gallup
Age is a significant driver of the likelihood of smoking cannabis. 26% of young adults, aged 18–34, say they smoke cannabis, reported use falls to 18% among adults aged 35–54 and 11%, among adults aged 55 and older
A separate question finds that half of adults (50%) say they have tried marijuana
Mint Cannabis nabbed 4 rare Arizona equity licenses. They're now “placeholders” — AZ Central
Mint Cannabis acquired control of the four licenses and used them to place four dispensaries inside a single location at an El Mirage business complex to meet the Department of Health Services' opening deadline
Cannabis Outlet is the name on one of the doors, while the other three sport the names of the limited liability corporations that applied for the licenses: "MCD-SE Venture 25," "MCD-SE Venture 26" and "Blue Palo Verde"
The state's health agency requires that social equity license holders had to open their dispensaries by Oct. 8 or potentially lose the opportunity to open at all. Once operational, dispensaries must stay open at least 30 hours per week
But on Monday morning, all of the interior doors to the four dispensaries were closed. Inside the unfurnished suite, a lone employee sat at a small table to inform visitors the place wasn't actually open and might not be for up to a year
PA Gov. Josh Shapiro called for legalizing adult-use Cannabis. The state’s need for revenue could help make it a reality — The Philadelphia Inquirer
Shapiro’s budget proposes a 20% tax which would bring the state $14.8M in tax revenue in its first year. That estimate increases to $76M in its second year, $160M in its third, and $230M in its fourth
The budget projects legalization by the start of the next fiscal year on July 1, with dispensaries set to begin sales by Jan. 1. The Pennsylvania Department of Agriculture would regulate the program
While there is some interest among Republican members, many Republican senators still oppose it, meaning legalization is nowhere near certain to happen
New York lawsuit claims Cookies broke exclusive cannabis licensing deal. The lawsuit pits Cookies vs Cookies Retail (TRP) — MJBizDaily
Culture House recently opened in the former location of a Cookies-branded clothing and CBD outlet in Manhattan’s Herald Square
By allowing a NY-based adult-use license holder to proceed with opening a Cookies-branded cannabis store at the location—Cookies violated an “exclusive right to open the first Cookies-branded retail marijuana stores” in New York, a lawsuit filed in state court in Manhattan on Jan. 24 alleges
Cookies Retail claims to have “invested over $100 million into expanding the Cookies brand…throughout the United States,” due in part to its “exclusivity” agreement with Cookies
Florida Senate advances 30% THC potency cap on adult-use cannabis. Florida would become the third state in the U.S. to impose a market-wide potency cap on adult-use cannabis if the proposal becomes law — MJBizDaily
“All other forms of marijuana” except edibles would be capped at 60% THC
Adult-use edibles in Florida would have a maximum amount of THC of 200 milligrams per package and 10 milligrams per serving
California Gives Up on the Illegal Cannabis Market. The Department of Cannabis Control (DCC) data shows a decrease in search warrants served. — Harris Sliwoski
The state went from serving 92 search warrants, to 60 search warrants, to 24 search warrants in Q4 2023
New Jersey is making medical marijuana registration free
Massachusetts sales of $1.56B in 2023, up $78M compared to 2022
Desert Hot Springs plans to lower taxes for cultivators
Study reveals a 90% spike in Delta 8 THC searches in states without adult-use cannabis
💵 Deals
Cloud Cannabis dispensaries have been acquired by Stash Ventures. Stash Ventures is the parent company of Timber Cannabis Co., High Minded and High Minded Creations. It has now added Cloud Cannabis’ 11 Michigan retail stores, including two Grand Rapids locations, a Muskegon location and a Kalamazoo location. Cloud Cannabis’s previous owners have kept the cultivation and manufacturing operations under the name Mitten Distro, focused on the wholesale brand Mitten Extracts, while the retail spots have kept the Cloud Cannabis name
nuEra Cannabis acquires Ieso. Ieso holds one of only 20 full-scale cultivation licenses in IL. The transaction brings a substantial cultivation facility located in Murphysboro, IL, under nuEra’s umbrella, including: an 85,000 sq ft facility, of which 36,000 sq ft are under greenhouse and indoor cultivation, with potential expansion capabilities of up to 210,000 sq ft of flowering canopy, a complete hydrocarbon extraction operation, a commercial kitchen, and a license to transport cannabis products to dispensaries
Avextra raises €20M over the last 18 months, comprised of Equity instruments and Convertible Loan Notes (CLNs). The CLNs have all now been fullly converted into common shares at a valuation of €100M. The funding will support Avextra’s continued expansion of its European distribution channels and accelerate clinical trials to create new evidence-based treatment options for specific indications
Curaleaf International acquires Can4Med, a prominent pharmaceutical wholesaler specializing in cannabinoid medications in Poland. The Polish Pharmaceutical Chamber estimates that the potential number of medical cannabis users could reach 300,000 (38 million population), while the number of legal cannabis users (both medical and CBD) is expected to reach 1.3 million by 2026
Aurora Cannabis has acquired the remaining ~90% equity interest of MedReleaf Australia at an enterprise value of AUD$50M. Aurora paid AUD$9.45M in cash with the balance of the purchase price satisfied by the issuance of common shares of Aurora. MedReleaf Australia is a leading distributor of medical cannabis products and holds the #2 position in the Australian medical cannabis market. This market is currently estimated to be worth ~AUD$400M and has quickly become one of the largest nationally legal global medical cannabis markets outside of Canada
AYR Completes Previously Announced Plan of Arrangement. The company extended the maturity of all of its Senior Notes due 2024 and certain other debt by two years. As a result, AYR has retired or extended the maturity of nearly $400M in debt in the past year and now has limited debt maturities until 2026. In connection with the plan of arrangement, AYR has issued ~29M SVS Shares to 2024 Senior Noteholders, ~5M SVS Shares to the Backstop Provider, and ~23M Anti-Dilutive Warrants to its shareholders of record as of February 5, 2024. AYR raised $40Mof new capital through the issuance of $50M of additional Senior Notes maturing in 2026
Body and Mind divests Nevada cultivation and processing assets. Vegas Brazil LLC will pay BaM $2M ($1M cash, $1M seller’s note)
AFC Gamma Closes Two Syndicated Commercial Real Estate Loans totalling $56.4M. In the first transaction, AFC Gamma funded a $28.2M mezzanine loan to DC Partners as sponsor of The Allen, a 35-story mixed-used project situated on Allen Parkway and the Buffalo Bayou Park in Houston, Texas. In the second transaction, AFC Gamma committed $28.2M to a mezzanine loan, with $20.7M funded, to Belpointe PREP, LLC (NYSE American: OZ) as sponsor of Aster & Links, a premier multi-family community development with ground floor retail located in downtown Sarasota, FL
📄 Company Updates / Earnings
Canopy Growth Q3 FY 2024 Financial Results. $78.5M Revenue, down 7% Q/Q, 36% GM, ($9.0M) Adjusted EBITDA, ($230.3) Net Loss, $186M Cash, $612M Debt
Aurora Cannabis Q3 FY2024 (December) Results. $64.4M in revenue, up 2% Q/Q, $4.3M Adjusted EBITDA, ($25.2M) Net Loss
The Cannabist Company adds Ciencia Labs portfolio of brands and products, including Dreamt, Luchador and Quell. “The Ciencia Labs team has created one of the most interesting and innovative product portfolios in cannabis, and their brands’ impressive reach in California speaks to their creativity and passion for product development,” said Jesse Channon, President, The Cannabist Company
🏬 Retail / Distribution / Lounge
Mammoth Distribution adds 710 Labs and Papa & Barkley to platform. According to Headset (December 2023), Mammoth Distribution brands now include the #2 vape and #4 edibles brand (Heavy Hitters), #1 topical and #1 tincture brand (Papa & Barkley), #2 concentrate brand (710 Labs) and #10 pre-roll brand (Almora Farms)
Brownies, NY's 50th adult-use cannabis dispensary, opens in Colonie. It is the 14th majority Black-owned dispensary in NY
C3 Industries Broadens Footprint with Opening of First High Profile Cannabis Dispensary in Illinois, 23rd Retail Location Nationwide. High Profile joins five other dispensaries in Springfield. Share, opened in September, is Springfield’s only locally owned and operated cannabis dispensary. Maribis has two locations, while Ascend owns two locations
Ayr Wellness to open dispensary in former Starbucks with drive-thru in Manchester, CT. Manchester's other two hybrid retailers, Curaleaf and Fine Fettle, are in the Buckland area, while Ayr Wellness would be positioned right near Interstate 384 and closer to towns like Bolton, Coventry, and Glastonbury, without dispensaries
In addition to MedMen San Jose closing, Herbs also temporarily closed. Herbs was forced to close after the city rejected its licensing renewal because the company owes hundreds of thousands of tax dollars to San Jose. San Jose had 16 dispensaries last year which brought in $16.6M of tax revenue. This year’s revenue is set to generate about $15.8M in taxes, down 13% from the 2022-23 fiscal year
OG Cannabis Cafe, L.A.’s first Cannabis pub, blazes back after a 4-year hiatus. Although the cafe quietly re-opened to patrons in late October, things are set to kick into high gear this month, starting with a big watch party for the Super Bowl, hosted by former MMA fighter Nick Diaz
Embarc granted first of three operational permit to open in Fontana, CA. This comes over a year after the San Bernardino County city greenlit cannabis sales
🌱 Product
Curaleaf’s Select brand has expanded its product offerings with the launch of Select Stiq, a new 1g all-in-one cannabis oil vape. Compatible with Select Essentials oil, Select Stiq's compact pocket-sized design includes an auto-draw feature and a rechargeable USB-C port that is easy to use and built for flavor preservation. Select Essentials high potency oils deliver exceptional flavors with consistent THC levels, infused with naturally derived terpenes that mirror classic cannabis strains
SOMAÍ Pharmaceuticals x Airo Brand for European and Australian Markets. The partnership enables SOMAÍ to exclusively manufacture and distribute Airo's products to the Australian, German, Polish, and Swiss medical markets alongside SOMAÍ's manufactured inhalation oils. The anticipated SOMAÍ and Airo collaborative products are expected to be available for distribution starting in Q2 2024
Travis Barker Launches Barker Canna Co. with Hardware Partner Jupiter Research. Included in the product lineup are live rosin and full-gram rechargeable all-in-one vaporizers featuring unique flavor and strain combinations, each perfectly paired with premium, all-natural cannabis oil
Timeless launches “Kickin' It With Timeless" campaign in partnership with professional indoor soccer team, the Kansas City Comets, and Good Day Farm. Timeless has an exclusive merch pop-up at the Comets Cable Dahmer Arena for the remainder of the season, featuring a signature Timeless x Comets vaporizer flip case and battery, as well as other collaborative Comets merchandise
House of Puff launches first THC product, The Spritz. The new sublingual cannabis spray comes in 2 different formulas and takes effect almost as rapidly as smoking or vaping—and much more quickly than an edible
Mary Jones x Tilray Brands for Canada. Starting with their THC-infused beverages, the products are currently slated for Ontario availability in Q1 24. The brand will launch in Ontario with its 10mg THC-sodas in a variety of Famous Jones flavors, including Berry Lemonade, Boot Rear (Root Beer) And Col.Ahhhhh (Cola), uniquely labeled for Canadian cannabis packaging and naming requirements
Houseplant launches flash-frozen coffee with Cometeer. With a mantra of “before you bake, you must wake,” Houseplant‘s Cometeer collection launches with a single-origin medium roast from Aricha Adorsi in Ethiopia with hints of orange, peach and sweet tea; and a dark roast from Central America with notes of dark chocolate, cashew and baking spice
Hi Seltzer’s delta-8 beverages now carried in 200+ Spec’s Wine & Spirits in Texas. It is now available in over 3,000 stores across 24 states
Flourish Software Launches B2B eCommerce Menu to support direct wholesale. The portal allow brands to fully customize and create a distinct space annd can complement existing marketplace approaches or as a stand alone product
🧔 People
STIIIZY appoints Isaac Kim as CFO. Isaac Kim was most recently CFO of FirstElement Fuel, a clean energy startup, where he oversaw strategic planning, capital raising, corporate development, and accounting. He was responsible for raising ~$400M in debt and equity to expand operations throughout the state of California, growing headcount from 15 to 130 employees, and spearheading IPO efforts
Glass House Brands Board Member John Pérez resigns. John Pérez has stepped down from the Board, due to increasing commitments with his current employer. The former California Assembly Speaker recently joined the board on October 31, 2023
Charlotte’s Web adds former Ben & Jerry’s CEO Matthew E. McCarthy to Board of Directors. McCarthy most recently served as the CEO of Ben & Jerry's from July 2018 through April 2023 where he led the company through its most significant period of growth to take the #1 market share position in the U.S. ice cream market
🎙️ Interviews
Kim Rivers Discusses Trulieve Preparing for Florida's ~$6B Opportunity | The Dime
The Exhale: Inside the Spiritual Leune-verse | CannabisNow
Hirsh Jain on Cannabis, Politics & Election Season | Cannabis Investing Network
Karson Humiston on positioning for dominance | PROCO360