🍊 The Cannabist Co. to exit Florida
NY issues 105 additional licenses. Verano $50M share repurchase. Trulieve $350K fine tied to MA employee’s death. Holistic Industries $200K fine for MA mold outbreak. Raw Garden to pay SB $1.3M.
🌿 Industry
NY issues 105 Additional Adult-Use Licenses. This brings the total Adult-Use Licenses to 654 Issued in 2024. — NY Governor
New York State now has over 135 Adult-Use Dispensaries operational, with 17 dispensary licenses approved in the latest batch
Projections show that 2024 cannabis sales will exceed $200 million by early June
The dirty secret of California’s legal weed. An investigation by The LA Times and WeedWeek, found alarming levels of pesticides in cannabis products available on dispensary shelves across the state. — LA Times
25 of 42 legal cannabis products purchased from retail stores and tested at private labs showed concentrations of pesticides either above levels the state allows or at levels that exceed federal standards for tobacco
California requires cannabis products to be tested for 66 pesticides. That list, unchanged since 2018, has not kept pace with current cultivation practices
Some individual products contained as many as two dozen pesticides. The findings dovetail with scores of complaints from two private cannabis testing labs, reporting pesticides in products certified by other labs as safe. The results, the labs said, suggest some level of contamination in more than 250,000 vapes and pre-rolled joints on store shelves
Canadian hedge fund, Anson, known for short-selling cannabis stocks has been fined $2.25M by the SEC after allegedly paying a research firm to produce research about companies it was shorting. — Business of Cannabis
Anson Advisors and Anson Fund Management reportedly used a Cayman Islands-registered fund, the Anson Investment Management Fund (AIMF) to take short positions in cannabis companies, including marketplace Namaste Technologies (now known as Lifeist Wellness) and India Globalization Capital
Just after it had secured its short position, Anson offered an unnamed research company a percentage of the profits it made on the positions to produce negative reports and social media posts about the companies
The true nature of the payments to the unnamed publisher, which was paid $1.1M overall, were allegedly omitted, disguised as third-party invoices for non-existent research services
Michigan tops California in cannabis sales volume. The state also reported $279.6M in May sales across 811 dispensaries. — Crain’s
Since late 2022, Michigan has sold more “units” than California
The big differences between Michigan and California come down to two major things—taxation and the illicit market
California’s government collects a 15% excise tax on top of state sales taxes, which range from 7.25%–10.75%. And municipalities can also tag on additional local taxes. Some consumers in California face taxes on purchases as high as 38%
Michigan, on the other hand, only faces a 10% excise tax alongside a 6% sales tax. And local taxes aren't allowed in Michigan
NY State Senators Call for Investigation of Cannabis Fund. State Sens. Liz Krueger and Gustavo Rivera also demanded the state cease making loans through Chicago Atlantic and make whole those trapped in the predatory deal. — THE CITY
They called for an investigation by the state’s inspector general of the public-private fund, which was designed to finance a form of reparation for people whose lives had been disrupted by decades of racially discriminatory drug laws
New Hampshire adult-use cannabis legalization effort fails – again. Republican Gov. Chris Sununu’s vision for a unique state-run sales model – 14 government-owned marijuana stores throughout the state – failed 178-173 with lawmakers in the libertarian-leaning state House of Representatives. — MJBizDaily
The House has passed multiple legalization bills over the years only to have them blocked in the Senate. This year, both chambers passed legislation, and the Senate approved a compromise worked out by negotiators from both chambers
But the House declined to go along, instead voting 178-173 to table it and let it die as the session ended
The House-passed version had included a 10% tax, while the final version kept the 15% favored by the Senate, as well as the state-run franchise model the Senate wanted and the House strongly opposed
Maryland governor expected to pardon more than 175,000 marijuana convictions. The pardons by Gov. Wes Moore applies to low-level marijuana possession charges for an estimated 100,000 people. This includes more than 150,000 misdemeanor convictions for simple possession of cannabis and more than 18,000 misdemeanor convictions for use or possession with intent to use drug paraphernalia.
Colorado’s Weed Market Is Coming Down Hard and It’s Making Other States Nervous. Businesses are shuttering or laying off workers as sales have plunged by $700 million. — POLITICO
Colorado reported sales of $120.1M in April, down (5%) from March
While the market in Colorado overall has dropped more than 30% from its peak in 2021, sales in counties along the southern border have fallen nearly 50% as new markets in New Mexico and Arizona have boomed
But it’s not just the spread of legal weed disrupting Colorado’s market. It’s also how states end up competing on regulations. New Mexico allows purchase of up to two ounces at a time — double Colorado’s 1-ounce limit. Edibles in New Mexico can be produced with higher dosages, too
Regulators OK transporting cannabis to Massachusetts islands by boat. Facing a lawsuit and pressure to ensure residents have access to medical marijuana, the Massachusetts Cannabis Control Commission issued an administrative order to allow deliveries of regulated marijuana to Martha’s Vineyard and Nantucket by boat
Missouri awards 48 cannabis microbusiness licenses in second lottery round. The application period for the second round, which closed April 29, drew 2,083 total applications – 734 for wholesale and 1,349 for retail.
The German police have issued a warning to English fans ahead of the Euros and encouraged them to smoke cannabis instead of drinking alcohol.
💵 Deals

The Cannabist Company to divest Florida as part of its Continued Business Transformation Initiatives. The company cited that its Florida asset base is not commercially optimized, with more cultivation capacity than retail locations require. The company will instead continue to capitalize on its strong asset base in profitable markets such as Virginia and New Jersey, and are actively preparing for upcoming adult use transitions in Ohio and Delaware. The Company is in the process of divesting its entire asset portfolio and license in the Florida market, with LOIs for multiple transactions in place and $2.75M of deposits in escrow. Upon divesting these assets, including 14 retail locations, three cultivation and manufacturing facilities, and its license, the Company will exit the Florida market, which represented less than 5% of total revenue in Q1 2024, while contributing ($4.8M) in losses.
Verano to repurchase up to $50M in shares. The purchases may be made from time to time over a period of 12 months ending June 13, 2025, unless such share or dollar limit is met sooner.
Goodness Growth Closes $700K Non-Brokered Private Placement. The Company issued 1,300,078 subordinate voting shares at a 30-day volume weighted average price (VWAP) of $0.5384 as of May 17, 2024, representing gross proceeds of $700,000. As previously disclosed, proceeds from the transaction will be utilized in connection with a mortgage note that’s supporting the relocation of one of the Company’s retail dispensaries in Minnesota. The Company also announced today that it executed an eighth amendment to its credit agreement with its senior secured lender, Chicago Atlantic Admin, LLC, an affiliate of Green Ivy Capital.
AYR Wellness Secures $30M Real Estate Financing for Florida Indoor Cultivation. Under the terms of the agreement, AYR is leasing a 16-acre property comprising of 145,000 sq ft of industrial space in Ocala, Florida from IIPR. AYR plans to redevelop a 98,000 sq ft building within the property to serve as a regulated cannabis cultivation facility. IIP has committed to funding AYR up to $30.0M for the construction. This transaction marks an expansion of AYR’s long-term real estate partnership with IIP. AYR previously partnered with IIP on an 11,000 square foot processing facility in Ohio.
Grown Rogue Receives Licensing Approval in New Jersey, Closes Option 1 to Acquire 44% of ABCO Garden State. Grown Rogue has an option to acquire 70% of ABCO through two options; Option 1 was for 44% and Option 2 is for 26%. ABCO has an annual cultivation license with the New Jersey Cannabis Regulatory Commission with local zoning and planning approvals and sufficient power supply. Upon receiving licensing approval, the Company purchased Option 1 for $1.3M, which has been paid in cash. The Company anticipates exercising Option 2, pending regulatory approval, two years after operations commence. The purchase price for Option 2 is $720K. Grown Rogue has the right to purchase the remaining equity at fair market value.
High Tide secures $15M in Subordinated Debt. The Company will complete an offering of $1,000 principal subordinate secured debentures of the Company for aggregate gross proceeds of $15M at a price of $900 per Debenture, representing a 10% original issue discount. The Debentures will mature on the date that is 60 months from the date of issuance and shall bear interest at a fixed rate of 12% per annum on drawn amounts, payable quarterly. Pursuant to the terms of the subscription agreements, the funds will be drawn in two tranches: (i) $10,000,000 at closing and (ii) $5,000,000 in November 2024 (Final Tranche). The Final Tranche, until drawn, will be subject to a 1% per annum standby fee.
C21 Investments completes acquisition of Deep Roots Harvest. The Dispensary acquisition involved the purchase by Silver State from Deep Roots of its certain assets including applicable licenses. The purchase price paid by Silver State to Deep Roots in connection with the Dispensary Acquisition was $3.5M. The Company also applied for a management cease trade order (MCTO) due to an expected delay in filing of the audited consolidated financial statement for the year ended January 31, 2024.
📄 Company Updates
Central Coast Agriculture (CCA) to Pay Santa Barbara County Air Pollution Control District (APCD) $1.3M Settlement. CCA (Raw Garden), which operates a cannabis manufacturing facility in Lompoc, CA has agreed to pay $1.3M to settle penalties stemming from air quality violation notices. Between 2020 and 2023, APCD staff documented multiple air quality violations. Based on records and documents provided by CCA, operation of the facility during this period resulted in significant ozone precursor emissions.
Trulieve to pay $350K fine tied to MA employee’s death. The penalty levied by the commission is significantly greater than the $14,500 that Trulieve agreed to pay the Occupational Safety and Health Administration, or OSHA, in a separate settlement in late 2022, also stemming from 27-year-old employee Lorna McMurrey’s death.
Bloomwell Group Unites Brands and Operations to Form Germany's Largest Digital Platform for Medical Cannabis. Bloomwell Group launches Germany’s largest centralized digital platform for medical cannabis with regards to participating users, creating a one-stop shop for patients, physicians, pharmacies and suppliers all under the Bloomwell brand name. Bloomwell Group had been operating the pioneering subsidiary brands Grüne Brise, the first and largest marketplace for cannabis pharmacies, and Algea Care, Europe’s largest cannabis telemedicine platform, and is now uniting and further developing these operations.
Fine Fettle Applies to Open Cannabis Retail Establishment in West Hartford, CT. The dispensary would be Fine Fettle’s 8th dispensary in Connecticut and West Hartford’s third dispensary. Fine Fettle has ~300 employees across CT, MA and GA.
POSaBIT Q1 2024 Revenue of $3.8M, down 67% Y/Y, Net Income Loss of ($1.9M), Adjusted EBITDA Loss of ($0.8M), Cash of $0.9M.
🏬 Retail
Jungle Boys opened 9th FL dispensary in Tampa.
Story Cannabis expands Phoenix footprint with 11th AZ dispensary. In August 2023, the company acquired the licenses to four Nature’s Medicine locations.
The Apothecarium (TerrAscend) opens Nottingham, MD Dispensary. Alongside retail locations in Salisbury, Cumberland, and Burtonsville, The Apothecarium Nottingham is the Company’s 4th dispensary in Maryland.
The Cannabist Company opens 11th Dispensary in Richmond, VA. The Cannabist Company operates 148,000 sq ft of cultivation and manufacturing capacity in Virginia and has a retail presence in several of the most populated cities across the state.
G2 Dispensary in Rockaway, NJ in Morris County opens. This is the 108th dispensary in NJ open adult-use cannabis.
The Travel Agency opens Third Dispensary in Downtown Brooklyn, NY. The dispensary is located just a few doors down from Jay Z’s old stash spot and within walking distance to both Barclays Center and Atlantic Terminal.
Schwazze opens 35th New Mexico Dispensary in Bernalillo. The addition of R. Greenleaf Bernalillo brings Schwazze’s total number of New Mexico retail dispensaries to 35 stores across the state under both the R. Greenleaf and Everest retail banners.
Solful closes Santa Rosa, CA location to focus on Healdsburg, CA location. CEO Eli Melrod cited better foot traffic and less discount oriented customers as a reason to focus on the Healdsburg dispensary.
🌱 Product
KANHA Launches Minis–Fast-Acting, Bite-Sized Chocolates. KANHA Minis Deliver the First Fast-Acting, Bite-Sized Chocolates Sunderstorms new edibles line, KANHA Minis, brings high dosage, precision content and fast-acting effects to hard-shell coated chocolates. Available in three delicious options – FLY, GROOVE and FLOAT – each blissful bite features 4mg of THC paired with terpenes, coactives and key cannabinoids that help consumers pick their vibe.
Old Pal x The Flowery for Florida. Old Pal CEO said he wanted to be in Florida with the Flowery since he first saw it around 2 years ago, saying “the facility is incredible, and the people are our kind of folks. The Flowery finally having enough material to support our brand, made the stars align.” Old Pal is now available in over 25 states.
Holistic Industries fined $200,000 by Massachusetts regulators after a mold outbreak in which the company allegedly “knowingly” sold contaminated cannabis. According to CCC documents, rather than immediately fix the problem, the company sought out permissive lab testing from ATOZ Laboratories that allowed the tainted marijuana to pass inspection and be sold, leading to “numerous patient and consumer complaints” that Holistic cannabis “smelled and tasted like mold.”
Wana Brands x Happi Partner to Launch Hemp-Derived THC Gummies Nationwide. This is the introduction of hemp-derived THC gummies for Wana Brands. The new gummies feature a unique 1:1:1 formulation, containing 5mg each of CBD, CBG, and hemp-derived THC, crafted to deliver a smooth, mood-lifting high. Each package offers 10 meticulously crafted 5mg gummies.
Carma HoldCo Launches TYSON 2.0 Medicinal Cannabis Products in Germany with PHCANN International (PHCANN). The launch will introduce three eagerly awaited strains – Haymaker Haze, NYC Diesel, and Tiger Milk – all renowned for their exceptional quality and therapeutic advantages. Patients can now conveniently obtain prescriptions and access these premium products from their homes via telemedicine platforms and online pharmacies. The initial products will be supplied to pharmacies by Nimbus Health.
Greenline Launches BLAZEPAY™ for Cannabis Retail in Canada. BLAZEPAY™ is a fully integrated, compliant, and secure payment solution for all Canadian cannabis retailers. Designed for both in-store and online applications, BLAZEPAY offers seamless integration with the POS and Greenline’s native e-commerce platform, BLAZE ECOM™, complementing the recently released BLAZE APPS™, and the new Scan-to-Shop functionality.
🧔 People
Jamie Mendola Resigns from Glass House Brands Board. Upon Mendola's departure, the Company's Board reduced the size of the Board from eight to seven, which reflects the recent addition of John "Jay" D. Nichols, Jr. and results in there being no vacancy.
New Leadership Appointments at the NY OCM. Felicia A. B. Reid has been appointed Executive Deputy Director and Acting Executive Director. Reid has over a decade of experience in State government and spent the last six years at the Office of Children and Family Services. Susan Filburn has been appointed Chief Administrative Officer. This new position will focus on stabilizing and formalizing administrative functions of the agency to support licensing, compliance and enforcement operations. Jessica Woolford has been promoted to the position of Director of External Affairs. In this role, she will ensure that communication and community engagement are prioritized as the agency implements transformational change.
Bruce Spinney indicted on three charges of wire fraud and one charge of conducting an unlawful monetary transaction. The charges stem from an alleged scheme by Spinney to misappropriate money given to him by investors who believed the funds they were providing were being used to fund construction and licensing of two cannabis dispensaries in Grafton, MA and Mendon, MA operating under the name Noble Manna. The proposed location of Spinney’s Grafton dispensary is now the location of Discern'd Cannabis Purveyors. Discern'd listed Spinney as the owner on its application paperwork filed to the state’s Cannabis Control Commission in 2021, along with Discern’d CEO Allan Villatoro. Discern’d is facing two lawsuits in Worcester County Superior Court. One of the lawsuits, filed in February, alleges the company has failed to make payments on a $100,000 loan provided by JJH Investments. Another lawsuit, filed in October 2021 by Cannapreneur Partners, accuses the company and Villatoro of failing to provide the company with promised voting securities and corporate waste and fraud.
🎙️ Interviews
How Grown Rogue's Craft Cannabis Model is Disrupting the Industry | The Dime
The 2 most important cannabis industry developments in the US in 2024 | FlowerHire
Making marijuana: Behind the scenes of SunBurn | NBC Miami
The Blame Game | Higher Exchanges