🧃Trulieve Launches Hemp Beverage
Lume Cannabis launches Lume Hemp in Florida. CEA Industries acq. Fat Panda for $12.6M. Chicago Atlantic BDC $100M Credit Facility. Greenlane Raises $25M. Story Ohio $15M Credit Facility from AFC.
I’ll be at the Benzinga Market Spotlight Tuesday (March 4th) in New Jersey. Look forward to catching up if you’re attending and if you still need tickets, use the link here for 20% off.
🌿 Industry
Lawsuit claims Smoore ran an illegal monopoly. This latest legal challenge brought against Smoore, whose CCELL 510-threaded vaporizer is sold throughout the United States, was filed by Earth’s Healing. — MJBizDaily
According to the suit – first reported by Green Market Report – Smoore has colluded with U.S.-based partners since Fall 2016, creating a “cartel” to control prices and ensure that there are “no meaningful competitors”
According to the suit, “Smoore has entered into horizontal agreements with its Authorized Distributors that bars each from competing with one another and with Smoore.” Distributors include Jupiter Research (Tilt Holdings), Greenlane, CB Solutions and 3Win Corp
Marc Hauser points out that what’s even more interesting is that Smoore not only sold wholesale through its distributors, but also sold the same products directly to wholesale buyers. This horizontal conspiracy unlawfully “artificially fixed the price” for Smoore’s products
RFK Jr. confirmed to head HHS – where does he stand on cannabis policy? Kennedy has a long track record of supporting drug policy reform, including cannabis reform, and has often spoken about his own struggles with substance abuse. — MPP
During his candidacy for President, he said that if elected, he would "decriminalize cannabis at the federal level", and that states should be able to decide their own cannabis laws without federal interference
However, since being nominated by President Trump to lead HHS, he has been less clear about his plans for supporting federal cannabis reform. His most recent comments on cannabis suggest that he may be changing his tune on actively supporting federal cannabis decriminalization and legalization
When asked during his Senate confirmation hearings if he would commit to working with the DOJ and DEA to resume the process of rescheduling marijuana from Schedule I to Schedule III, he stated that he would "defer to the DOJ and DEA on the allocation of their resources and the development of their priorities"
Delta Extraction loses appeal of its revoked license following Missouri cannabis recall. An administrative hearing commission ruling concluded the company violated state law by importing hemp-derived THC concentrate from other states and adding it to Missouri-grown marijuana products. — Missouri Independent
Almost all of the reasons cited for revoking Delta’s license and pulling 60,000 marijuana products off the shelves were upheld. That list included failing to notify law enforcement immediately after someone broke into Delta’s Robertsville facility and stole the company’s server, just days after the state shut down its operation. The server included the only copy of Delta’s video surveillance files
'Complete failure': California pot industry hits another grim milestone. Inactive licenses are climbing as California companies struggle to stay in business. — SFGATE
There are now 10,828 inactive and surrendered pot licenses in the state and only 8,514 active ones, meaning dead pot licenses now outnumber active ones
The business failures in California’s cannabis industry are especially bad because California’s legal market has only a fraction of operators today compared with California’s medical market that existed prior to legalization
Texas Senator Files Bill to Ban THC, Intoxicating Hemp Products. Sen. Charles Perry, a Lubbock Republican, is sponsoring legislation that Lt. Gov. Dan Patrick is pushing as a top legislative priority this session. — CBT
The legislation, Senate Bill 3, aims to ban all consumable hemp products containing any form of THC while leaving in place the state’s low-THC medical cannabis program that incorporates a 1% THC cap under the state’s Compassionate Use Program
S.B. 3 would require manufacturers to test hemp plant samples for the concentration and identity of the cannabinoids in the plant, as well as for the presence or quantity of heavy metals, pesticides, microbial contamination and any other substance prescribed by the Texas Department of State Health Services
Cannabis Farm Sues Neighboring Produce Farm for Pesticide Contamination. River Valley Growers, a cultivator in Western Massachusetts, has filed a lawsuit against neighboring produce farmer Nourse Farms claiming the defendants contaminated the plaintiffs’ cannabis crops and land with pesticides. — The Boston Globe
The lawsuit alleges that pesticides sprayed by the large-scale blueberry and vegetable farm next door ruined 47,000 pounds of cannabis, and stymied several subsequent crops, amounting to about $17M in total losses
River Valley Growers said the deal to sell its 2022 crop fell through when the grower’s product was flagged by a testing lab for pesticides, even though the company hadn’t used any pesticides on its crop because the cannabis was meant to be distilled into concentrates
The Massachusetts Department of Agriculture Resources investigated and found that pesticides from Nourse Farms had drifted onto the cannabis cultivator’s crop and that the berry farm “did not operate in a careful manner,” the report said
Michigan cannabis faces ‘year of reckoning’ in 2025. Key market observations, based on Cannabis Regulatory Agency data below. — MLive
Since November, the industry has shed an average of 122 jobs per month, the first-ever decline. The market was adding about 1,283 jobs per months over the same period in 2022
As of January, the average retail cost for an ounce was $66.50. The same amount sold for $152.74 per ounce in January 2022, representing a 56% price drop
Industry-wide sales increased 8% in 2024, compared to 33% growth the year prior
Ohio recreational marijuana sales exceed $319M in 6 months
Illinois sales were down 8.5% sequentially to $140.2M, while YoY was up 4.8%
Germany elected cannabis-hostile chancellor Friedrich Merz to be their next chancellor, a political shift that may threaten Canadian cannabis companies that have increasingly been focused on exports as growth in the domestic market plateaus.
💵 Deals
CEA Industries to Acquire Fat Panda for $12.6M. The Company will pay the purchase price with a combination of cash, CEA Industries common shares, and seller and bank debt. Fat Panda is central Canada’s largest retailer and manufacturer of e-cigarettes, vape devices and e-liquids, with a market share exceeding 50% in the region. The company operates 33 retail locations, including 29 Fat Panda stores and four Electric Fog vape outlets, in the provinces of Manitoba, Ontario and Saskatchewan. Fat Panda also serves a wide range of customers through its online e-commerce platform. Its retail footprint is complemented by a comprehensive portfolio of products, including its own line of premium e-liquids manufactured in-house, along with a robust portfolio of trademarks and intellectual property.
Chicago Atlantic BDC Closes $100M Senior Secured Revolving Credit Facility. The Credit Facility matures in March 2028 and bears interest at SOFR plus 3.00%.
Greenlane Raises $25M Selling Units at $1.19. The offering consisted of the sale of 21,008,405 Common Units (or Pre-Funded Units), each consisting of (i) one (1) share of Common Stock or one (1) Pre-Funded Warrant, (ii) one (1) Series A PIPE Common Warrant to purchase one (1) share of Common Stock per warrant at an exercise price of $1.4875 and (iii) one (1) Series B PIPE Common Warrant to purchase one (1) share of Common Stock per warrant at an exercise price of $2.975.
Advanced Flower Capital Provides $15M Senior Secured Credit Facility to Story Ohio. Story intends to use the proceeds from the loan to acquire and build out dispensaries in Ohio. AFC will hold the entire credit facility, which consists of a first-lien term loan secured by all of Story of Ohio LLC’s assets, including the value of its cannabis licenses and its owned real estate in both Ohio and Georgia, which is initially included as additional collateral.
LEEF Brands Signs Binding Letter of Intent to Acquire a Tier 1 Processing License in New York. In addition to acquiring the license, LEEF has secured a 7,000-square-foot facility and positioned extraction equipment in New York, allowing for rapid market entry with minimal capital expenditure.
High Tide Pauses Acquisition of Purecan GmbH and Explores Alternative Arrangements with Purecan to Enter the German Medical Cannabis Market. High Tide intended to acquire 51% of Purecan for ~€4.8M. During ongoing due diligence, the Company reassessed the optimal structure for this transaction and is now exploring alternative arrangements with Purecan to allow High Tide to maintain its planned commercial exposure into the German market.
Harvest Care Medical Refinance $4M at <10% Interest to Support Growth in West Virginia. Harvest Care Medical is a vertically integrated cannabis company based in Bridgeport, West Virginia. The company currently operates seven dispensaries under the Country Grown brand, with two additional dispensaries under development that will open in Q1 and Q2 of 2025.
MediPharm cancels $5.5M sale of Ontario cannabis facility to Kensana. The company terminated the sale of its ABcann Medicinals subsidiary because Ontario-based Kensana Health did not meet some of the terms and conditions within the required timelines.
📄 Company Updates
Cookies handed $18M preliminary award in bitter investor dispute. A private administrative judge in San Francisco sided almost entirely with Berner and his executives, although the judge agreed to far lesser damages than Cookies originally asked for, awarding about $17.9M in damages plus attorneys’ fees; Berner and his colleagues had asked for over $118M in damages. Roger L. Scott, an attorney representing the investors, Cookies Retail LLC, said in an emailed statement to SFGATE that the arbitrator’s interim award is not enforceable and vowed to continue fighting their case.
Hall of Flower adds AXIS Club to the Trade Show. AXIS is an exclusive private lounge where the most influential leaders connect, collaborate, and recharge in style. Whether you’re hosting meetings with investors, networking with industry visionaries, or simply taking a moment to relax, AXIS offers a sophisticated space designed for productivity and inspiration.
Green Leaf launches industry-first 401(k) plan for legal cannabis employers. GreenPath 401k is a one-of-a-kind, fully vetted and transparent retirement plan solution tailored specifically for the legal cannabis industry, First Citizens Bank will serve as the custodial agent and banking partner for the plan and Green Check will provide the account onboarding and verification services for the entire coalition of the financial partners.
Jushi cashing in on Employee Retention Credit (ERC). The IRS owes Jushi ~$6M in ERC claims, which the company sold to a third party for ~$5.1M in cash. Jushi, which received a $1.3M check from the IRS for various claims it filed previously, has another $3M in ERC claims outstanding. Businesses that filed claims before Sept. 14, 2023, are starting to get their ERC checks. And the IRS is paying interest – sometimes more than 15% – dating to when the original return was filed.
Green Flower signs up Alabama State University to offer cannabis education. The programs are set up as 24-week online certifications.
🏬 Retail
Good Day Farm opens dispensary in vibrant Allsopp Park neighborhood of Little Rock, AR. Spanning 3,456 sq. ft., the expansive storefront is designed to offer patients a comfortable, modern, and seamless shopping experience. Good Day Farm's new location solidifies its role as an industry leader and the South's #1 medical marijuana dispensary brand. With a team of over 2,200 employees and cutting-edge manufacturing facilities across Arkansas, Louisiana, Mississippi, and Missouri.
Trulieve opens 5th Ohio Dispensary in Columbus. The company’s other Ohio locations are in Beavercreek, Columbus, Westerville and Zanesville.
Verano opens 80th Florida Dispensary in North Miami Beach. This brings the company’s overall dispensaries to 153 dispensaries nationwide.
AYR Cannabis opens dispensaries in Niles, OH and Miami-Midtown, FL, and closes Key West, FL location. This is the fourth AYR store in Ohio with plans to open an additional four dispensaries throughout the year. The Miami-Midtown location proudly marks the Company’s 67th dispensary in Florida. AYR closed its Key West location, citing difficulty in managing the supply chain.
Ascend Wellness opens Detroit Dispensary, Its 38th Dispensary in the Nation. This marks Ascend's 38th dispensary within its seven-state footprint, and the Company's eighth dispensary in Michigan with additional locations in Ann Arbor, Battle Creek, Grand Rapids, East Lansing, and Morenci.
Jushi opens Relocated Dispensary in Linwood, PA. Beyond Hello™ Linwood is situated in a high-traffic retail corridor in Delaware County, Pennsylvania, with convenient access to major roadways, including Interstate 95 and I-476.
Vext Relocates and Expands Dispensary Located in Jackson, OH. Vext is fully vertically-integrated in Ohio, operating a Tier I cultivation facility, a manufacturing facility, and two dispensaries in Jackson and Columbus. Upon closing of the Ohio Expansion Transaction, the Company expects to add two more dispensaries in Athens and Jeffersonville. Additionally, the recently announced Portsmouth location brings the Company closer to reaching the state dispensary license cap of eight.
🌱 Product
Trulieve Launches Onward THC Beverage. These Farm Bill compliant beverages are available now online and coming soon to select Total Wine locations in Florida. Onward beverages come in a variety of delicious flavors including Blueberry Mojito, Italian Spritz, Passionfruit Martini, Peach Bellini, and Sea Salt Margarita. These low-calorie, non-alcoholic cocktails are crafted in the USA using naturally derived THC and CBD with no artificial flavors, colors, or sweeteners offering consumers a new and natural way to sip, socialize, and savor the moment.
Lume Cannabis launches Lume Hemp in Florida. Lume CEO Dave Morrow said they would love to launch Lume Hemp Co. in Michigan and invest those millions of dollars here and use the infrastructure they’ve already got, but can’t. The company launched seltzer drinks containing 7.5 mgs of THC in April 2024 and sold around 1 million cans last year across 38 dispensaries.
El Blunto partners with Asake to Launch High-End Cannabis Brand, GIRAN. The collaboration kicks off with two diamond-infused pre-roll products, featuring top-shelf indoor flower and premium THCa cannabis diamonds.
Canopy Growth Expands Deep Space Propulsion Beverage Lineup with Two New Flavours: Rocket Root Beer and Charged Cream Soda. Each 355ml can of Deep Space Propulsion Rocket Root Beer and Charged Cream Soda is crafted with natural flavours and features a unique formulation of 10mg of THC, 10mg of CBG, and less than 30mg of naturally occurring caffeine.
🧔 People
Pineapple Express CEO Matthew Feinstein steps down. The Board of Directors has appointed Franjose "Frank" Yglesias as CEO, President, and Chairman, effective immediately. The Company has also relocated its corporate headquarters from LA to Atlanta, signaling its transformation into cannabis authentication technology, launching its GROOVY platform for Product Safety and Consumer Rewards. The company also appointed Marc Williams as COO. Williams co-founded CapturePlay in 2013, which created a tokenized asset skill-based gaming platform where players could purchase, play, bank, or sell game pieces while earning tokens.
🎙️ Interviews
Catalyst’s Elliot Lewis | The Plant Lady
Tiffany Chin, Head of Cannabis for Snoop Dogg | Highly Enlightened
Ultra Health CEO Duke Rodriguez says New Mexico's cannabis industry is 'at a tipping point' | Conversations Different
Rolling Reforms: Cannabis & The New Administration w/ Hirsh Jain | Kaya Cast
The Road Ahead: Sammy J’s Take on Cannabis Industry Recovery | Higher Exchanges
Entourage Effect Capital’s Matt Hawkins On Cannabis Opportunities | TDR