🍻 Tilray acquires four craft breweries from Molson Coors
🍻 Tilray acquires four craft breweries from Molson Coors
Ohio sees 3x adult-use sales vs. prior three Tuesdays. Curaleaf Executive Chairman Boris Jordan appointed CEO. DEMECAN valued at $109M in latest funding. MJ Unpacked raises $550K.
🌿 Industry
First day of adult use sales in Ohio saw a 3x increase in Daily Revenue. Average item price was roughly 4% higher than expected — Headset
During the prior week, a typical retailer sold ~$12,740/day. When stores launched recreational sales on Tuesday, that number jumped to $33,864/day (a 270% increase in total sales compared to the previous three Tuesdays)
Dispensaries see long lines on first day of recreational marijuana sales
Outside Lands 2024: Garden of Weed’n continues to celebrate S.F. cannabis culture. This year’s Grass Lands, now in its sixth year of operation, has more varied programming than ever — SF Chronicle
Presented by Embarc, the venue—which sees more than 50,000 visitors each year— hosts cannabis-themed challenges and performances by Bay Area musicians, in addition to booths set up by 18 commercial partners
Embarc wants to introduce visitors to licensed cannabis dispensaries, which suffered under competition from an unchecked illegal market
Trump Endorsing Florida Marijuana Legalization Initiative Would “Guarantee Victory.” If former President Donald Trump endorses a Florida marijuana legalization ballot initiative ahead of the election, it would “guarantee victory,” his longtime ally and GOP political operative Roger Stone says — Marijuana Moment
While Trump has yet to say where he stands on the measure, which he’ll have a chance to vote on this November as a Florida resident, he said last week that he’ll be making a statement about Amendment 3 “fairly soon”
“President Trump’s position in 2016 was that this is a state’s rights issue, and that the people in all cases should decide,” he said. “Whether he would vote yes personally [on Amendment 3] is less important than letting the people decide. That’s kind of always been his position”
Missouri regulators recall 2,600 cannabis products over improper testing. Missouri regulators recalled more than 2,600 cannabis products after discovering they weren’t properly lab-tested — MJBizDaily
The products were distributed to dispensaries by a cultivation licensee called NGWMO, according to the Division of Cannabis Regulation (DCR) notice
The U.S. Department of Veterans Affairs (VA) has issued a reminder that government doctors are still prohibited from recommending medical cannabis to veterans. At least as long as it remains a Schedule I controlled substance under federal law — Marijuana Moment
VA’s Cincinnati health center published the advisory on Wednesday, acknowledging that “marijuana is now legal in Ohio and dispensaries began opening over the past few days.” However, cannabis is still a Schedule I substance under the federal Controlled Substances Act (CSA), which “makes it illegal in the eyes of the federal government”
“The U.S. Department of Veterans Affairs is required to follow all federal laws including those regarding marijuana,” it says. “As long as the Food and Drug Administration classifies marijuana as Schedule I VA health care providers may not recommend it or assist Veterans to obtain it”
While VA isn’t explicitly suggesting that the policy on VA doctor medical cannabis recommendations would change if marijuana is moved to Schedule III, as the Justice Department has proposed, the statement’s focus on a ban related to drugs with a Schedule I designation is notable
Alabama Medical Cannabis Commission (AMCC) awards two additional cultivator licenses. The new licenses will go to Pure by Sirmon Farms, LLC and Blackberry Farms, LLC, following the completion of investigative hearings — ABC 3340
The commission said it also voted to deny licenses to two other cultivator applicants and one secure transporter applicant. Those decisions were said to be consistent with the ALJ’s recommended orders and the prior decisions of the Commission in those cases
2 Chainz sues Pineapple Express Dispensary. 2 Chainz invested $1.5M into the Pineapple Express Hollywood in 2021 through AntiMatter Holdings in a deal that quickly went sour — SF GATE
The dispensary owners told 2 Chainz that their store would be open for business by April 2021 but numerous problems delayed opening for nearly a year, with the store not opening until March 2022
The terms of Epps’ investment gave him a monthly dividend and allowed him to recall 110% of his money at any time with 30 days notice. But, when AntiMatter asked for their money back in May 2022, the company failed to pay up
The store has since shut down. The owners have also been sued by other investors and business partners, including one who said the Company never filed its income taxes and owed nearly $1.69M in back taxes
Cannabis use tied to head and neck cancer. New study reveals that those with cannabis use disorder are up to five times more likely to develop head and neck cancer than non-users — Keck Medicine of USC
“This is one of the first studies — and the largest that we know of to date — to associate head and neck cancer with cannabis use,” said Niels Kokot, MD, a head and neck surgeon with the USC Head and Neck Center and senior author of the study. “The detection of this risk factor is important because head and neck cancer may be preventable once people know which behaviors increase their risk”
Kokot hypothesize that the primary reason cannabis raises the risk of head and neck cancer is because of the damaging effect of the smoke
To reach their conclusions, the researchers compiled 20 years of data through a health research network of 64 health care organizations that accounted for more than 90M individuals. They tracked cancer cases from 1–5 years of cannabis use
Inc. 5000 list incldues AIQ (#10, 16,469% 3-year growth, $26M in 2023 Revenue, $35M ARR), Abstrax Tech (#627, 732% 3-Year Growth), Sonoran Roots (#949, 536% 3-Year Growth), Azuca (#1000, 511% 3-year growth), BLAZE (#1,121, 457% 3-Year Growth)
North Dakota adult-use marijuana initiative advances to ballot for third time
💵 Deals
Tilray to acquire four craft breweries from Molson Coors. The acquisition includes Hop Valley Brewing Company, Terrapin Beer Co., Revolver Brewing, and Atwater Brewery. Tilray’s portfolio will expand across key beer markets adding 30% new beer buying accounts. Tilray's beer business is expected to grow to 15 million cases annually, cementing Tilray Beverages as the #1 craft brewer in the Pacific Northwest, #1 in Georgia and anchors Tilray’s craft brands in two key beer states: TX and MI
DEMECAN, one of Germany’s largest cannabis producers, recently completed its latest round of funding, bringing its valuation to $109M. The funding round was led by Trog Hawley Capital, marking the first institutional investment by a U.S.-based investor in Demecan. While financial details on the latest funding were not known, according to the source, the company managed to raise a “high seven digit number”, mostly in equity and some debt. Demecan is one of a handful of German companies allowed to grow cannabis and raised €15M via loans and equity in 2022
MJ Unpacked raises $550K. The company filed Form D on August 7th, disclosing it has raised $550K out of a $750K offering. The company’s next conference is in St. Louis from November 5–7
High Tide Closes $15M in Subordinated Debt Facility. The Debentures will mature on July 31, 2029, and bear interest at a fixed rate of 12% per annum on drawn amounts, payable quarterly. In connection with the closing of the Initial Tranche, the Company issued an aggregate of 230,760 common shares of the Company at a price of $3.47 per Common Share to the Lenders
📄 Company Updates / Earnings
Verano Q2 2024 Results. Revenues of $222M, an increase of 0.5% QoQ, and a decrease of (5%) YoY, 51% GM, Net loss of $(22M) or (10)% of revenue, Adjusted EBITDA of $71M (32% margin), cash of $130M, debt of $396M
Cresco Labs Q2 2024 Results. Revenue of $184M, Adjusted gross profit of $97M (52% GM), Net loss of ($51M) which includes a one-time $61 million charge in the quarter related to the Company’s new tax position, Adjusted EBITDA of $54M, up 33% YoY, and Adjusted EBITDA margin of 29%, OCF of $17M and FCF of $11M
AYR Q2 2024 Results. Revenue of $116.7M, up 0.5% YoY, down (0.6%) QoQ, Adjusted EBITDA of $29.4M (25.2% margin), $47.5M cash
TerrAscend Q2 2024 Results. Net Revenue was $77.5M, compared to $72.1M, an increase of 7.5% YoY, Gross Profit Margin was 48.6%, compared to 50.2% in Q2 2023. GAAP Net loss from continuing operations was ($6.2M), EBITDA from continuing operations was $18.6M, FCF was $11.7M, Cash of $30.5M
The Cannabist Co. Q2 2024 Results. $125.2M in Revenue, 38.5% GM. $17.5M Adjusted EBITDA, 14% margin, $22M in cash
Planet 13 Q2 2024 Results. Revenue of $31.1M, Adjusted EBITDA of $3.2M, Net loss of ($8.1M), Adjusted EBITDA of $3.2M, Net loss of ($8.1M), Cash of $26.7M
MariMed Q2 2024 Results. Revenue of $40.4M, 42% GM. $4.4M Adjusted EBITDA, 11% margin. 2024 Full Year Guidance: Revenue growth of 5% to 7%; Non-GAAP Adjusted EBITDA growth of 0% to 2%; Capital expenditures of $10M
Glass House Brands Q2 2024 Results. Revenue was $53.9M, Gross Profit was $28.7M (53% GM), Adjusted EBITDA was $12.4M, cash of $25.9M
Schwazze Q2 2024 Results. Revenue of $43.2M, up 2%, 44.0% GM, Adjusted EBITDA of $9.0M, cash of $12.3M
TILT Holdings Q2 2024 Results. Revenue was $26.6M compared to $41.6M in the prior year period. Adjusted EBITDA (non-GAAP) was $(1.2M), $2.7M of cash
Weedmaps Q2 2024 Results. Net revenues were $45.9M as compared to $48.4M in Q2 2023. Adjusted EBITDA decreased to $10.1M from $10.2M from the prior year period, Net income was $1.2M, Cash increased to $41.3M
Leafly Q2 2024 Results. Revenue was $8.7M, compared to $10.7M in Q2 2023. Gross margin was 89%, Net loss was ($1.3M), Adjusted EBITDA was $0.5M, $13.6M in cash
Silver Spike Capital Q2 2024 Results. Total investment income of $3.1M, Net investment income of $1.5M, or $0.25 per share Investment portfolio of $53.4M at fair value. Net asset value (NAV) per share decreased from $13.60 on March 31, 2024 to $13.56 on June 30, 2024
Canopy Growth Q1 FY2025 Results. Net revenue declined by 13% to $66M driven mostly by the impact of divested businesses. Consolidated Adjusted EBITDA loss narrowed to ($5M), a 77% improvement over Q1 FY2024. Cash and short-term investments balance of $195M
Organigram Q3 FY 2024 Results. Net revenue of $41.1M, up 25% YoY, Adjusted EBITDA of $3.5M vs. $(2.9M) YoY. Established European foothold with a strategic investment in Sanity Group, a leading German cannabis company. Completed landmark clinical study on FAST™ nanoemulsion technology showing faster onset, improved bioavailability of ingestible products. Pro-forma cash position of $173M
🏬 Retail
Curaleaf opens Destin, FL dispensary. This brings its total dispensaries in Florida to 64 dispensaries and 150 nationwide.
Planet 13 Opens 27th Florida Dispensary, Located in Ocala. The Ocala location is strategically located to serve the Ocala community and visitors which sees over 35,000 cars daily
🌱 Product
Nabis x Jetty Extracts for Distribution. With access to Nabis’ one-stop-shop marketplace platform technology, Jetty will also be able to simplify its ordering and fulfillment processes with an infrastructure that can accommodate increased sales volume in tandem with growth. Additionally, this collaboration enables access to Nabis’ cash flow management tools, such as Nabis Capital and Credit Score, allowing Jetty to establish consistency from start to finish in their overall go-to-market strategy when launching into other states and managing a nationwide footprint
Bloom x Cresco Labs to Launch Products in Florida. Bloom and Cresco Labs have expanded their partnership to include distribution across the state of Florida. Launching in November 2024, Bloom’s Surf all-in-one vape will be exclusively produced by Cresco Labs in Florida and available at all 33 Sunnyside dispensaries throughout the Sunshine State. Florida is the seventh state in which Bloom products will be available to consumers. Bloom is currently available in California, Illinois, Michigan, New Mexico and New York, with New Jersey and Virginia also slated for launch in Q3 and Q4 respectively
Curio Wellness x Ascend Wellness Manufacturing and Distribution Partnership. Ascend will manufacture and distribute Curio Wellness' products in Illinois, New Jersey, and Massachusetts, and Curio will manufacture and distribute Ascend's Ozone products in Maryland and Missouri. This partnership is a strategic collaboration designed to be mutually beneficial for both Curio and Ascend, leveraging each other's strengths and assets to expand market reach and product offerings. The capital-light approach enables both operators to utilize their existing IP and brand value in new markets without deploying meaningful capital
4Front Ventures Expands Product Line Up in Illinois and Massachusetts with Smoke Breaks. With five unique strains available in each state, including two Daytime, two Anytime, and one Nighttime, Smoke Breaks are perfect for unwinding and finding your ideal break, no matter the occasion
nuEra Cannabis Launches new Alchemy Ratio line of products – including both gummies & vape cartridges. This innovative product line is crafted to provide consumers with a more balanced and medicinal cannabis experience, delivering targeted relief through a precise blend of cannabinoids
🧔 People
Curaleaf appoints Executive Chairman Boris Jordan to become Chairman and CEO. Current CEO Matt Darin plans to retire but will stay on as a special advisor through year end to ensure an orderly transition. Boris Jordan was the founding investor in Curaleaf in 2014, and then became Executive Chairman, a position he has held since 2015
MariMed appoints Mario Pinho as CFO. MariMed appoint Mario Pinho as CFO. Prior to joining MariMed, Pinho worked at Rakuten USA since 2012 where he held several executive finance roles, the most recent as CFO since 2016. From 2008 to 2012, he was VP and Controller of Global Merchant Services for American Express, and from 2000 to 2008, was a Senior Manager, Department of Professional Practice, for KPMG
🎙️ Interviews
Trump Tips His Hand on Cannabis Policy | Higher Exchanges
Breaking Barriers: How Conservative States are Embracing Cannabis | Kaya Cast
Cannabiz Collects: Nonpayment is No. 1 reason Cannabis companies fail | MJBizDaily