🤞 Vice President Kamala Harris pledges to legalize recreational cannabis
MA fine Ascend Wellness and Curaleaf. NY approved another 141 permits. Cannect Wellness raises $7M. Grown Rogue terminates advisory agreement with Vireo. Green Dragon sells CO warehouse for $11.4M.
🌿 Industry
In outreach to Black men, Harris vows to legalize Cannabis. Vice President Kamala Harris is pledging to legalize recreational cannabis, protect cryptocurrency assets and give 1 million loans to Black entrepreneurs, as part of her efforts to court Black voters who may be pivotal in the presidential race. Former Rep. Cedric Richmond, a co-chair of the Harris' campaign, said her new announcement is part of her "Opportunity Economy" pledge — “an economy where people don't just get by, but get ahead. Where Black men are equipped with the tools to thrive: to buy a home, provide for our families, start a business and build wealth,” he said in a statement.
Massachusetts fine Ascend Wellness and Curaleaf. Fines totaled $165,000 over allegations of negligence when it came to consumer safety practices. Ascend was found to have not followed the state’s track-and-trace system properly. Curaleaf was faulted for a “systemic problem of not following best practices to limit contamination” at two cultivation sites.
Cannabis sales in Connecticut down (12%) in September. A decrease in the average price per gram and in the total number of products sold pushed total sales down 12.3%, from $25.7M in August to $23.4M in September.
NY regulators approved another 141 adult-use cannabis company permits. And for the first time since 2015 added three vertically integrated licenses (Nonna Farms LLC, NYRO Partners LLC, VNY-Ops Inc.) to the medical side, on top of the existing nine Registered Organizations.
NY Cannabis Insider to cease publication and wrap up hosting events at the end of October. Managing Editor Brad Racino cited the challenges of maintaining a publication that supports itself with subscriptions and ads when so few people have the money to subscribe or advertise.
Cannabis Industry's $130B Growth Potential. Whitney Economics projects that the U.S. cannabis industry will need between $65.6-$130.7B in sustainable growth capital to support new cannabis businesses and help refinance existing ones over the next decade.
MO health department only certifies 25 of the 57 microbusiness licenses issued in June as eligible. The Missouri Independent found at least 14 of 24 dispensary licenses may be linked to groups previously flagged for using disadvantaged individuals as fronts.
Report Finds Texas Medical Cannabis Program Inadequate for Patients. The Texas Department of Public Safety (DPS) said the state’s medical cannabis program does not provide “statewide access” to medical cannabis and suggested that officials should take steps to expand accessibility for patients.
ME issued recall for some Nova Farms products. The products failed testing for microbials, yeast, and mold.
OH Adult-Use Cannabis sales top $98M in first 2 months. The state’s 130 dispensaries—including 124 with dual-use certificates of operation to serve both patients and nonmedical consumers—reported $98.3M in adult-use sales and $67.6M in medical cannabis sales, according to the Ohio Division of Cannabis Control (DCC).
MI sales for September fell 9.7% sequentially from August. At $266.9M, sales were down 2.9% from a year earlier:
CO cannabis sales totaled $122M in August. Sales were steady M/M but down 8% compared to $132M in August 2023. However, on QTD basis, sales reached $245M for July and August, up 5% from the $233M recorded in April and May.
NM cannabis sales down $4.3M in September. Recreational cannabis sales for September totaled $35.7M from 942,000 transactions, while medical added another $11.1M from 238,000 transactions.
CA state judge deny request for TRO on banning consumable hemp. The court said that petitioners—including U.S. Hemp Roundtable, Cheech and Chong’s Cannabis Co. and other product manufacturers—failed to demonstrate that enforcement of the new emergency hemp regulations will cause them sufficient irreparable harm.
With New Hemp Regulations in Effect, CA ABC Sees Strong Compliance Following First Statewide Sweep. With CA’s new hemp regulations in effect, the California Department of Alcoholic Beverage Control (ABC) began enforcement efforts by visiting 383 licensed locations across the state to confirm establishments are in compliance with new state regulations and illegal hemp products are off shelves.
NJ will continue allowing Intoxicating hemp products, at least for now. A court order issued in a case between six hemp product manufacturers and the New Jersey Attorney General means hemp products can remain on store shelves in New Jersey, despite a new law signed by Gov. Phil Murphy last month. The new law makes selling intoxicating hemp products to anyone under 21 illegal, but also adds oversight and regulations to these items that have, thus far, escaped the purview of the New Jersey Cannabis Regulatory Commission.
Willie Nelson urges Dallas Voters to Decriminalize Marijuana. If approved, Proposition R would prevent Dallas police from making arrests or issuing citations for Class A or B misdemeanor cannabis possession offenses, unless it’s part of a high priority felony investigation for narcotics or violent crime.
💵 Deals
Cannect Wellness raises $7M. The funds will be used, in part, to complete construction of phase one of their 62,000 sq ft, state-of-the-art cultivation and product manufacturing facility located just outside of Chicago. Cannect Wellness was awarded one of the first Craft Grower licenses issued by the State of Illinois.
Green Dragon (Eaze) sells CO warehouse for $11.4M to Texas-based investor Donald A. Ball. The 91,981 sq ft Denver facility, built in 1970 and renovated in 2014, supplies 17 Colorado Green Dragon dispensaries. Green Dragon holds a 10-year lease on the property through January 2031.
Dark Horse acquires Greenlight Dispensary in West Helena, AR. The store will transition to operate under the Speakeasy by Dark Horse brand while the West Helena location serves as a temporary site before relocating permanently to Brinkley, AR.
Grown Rogue terminates advisory agreement with Vireo. As consideration for the early termination, Vireo will forfeit and return for cancellation 4,500,000 of the 8,500,000 share purchase warrants in Grown Rogue that are held by Vireo at a CAD$0.225 strike price and pay Grown Rogue $800,000 in cash. Vireo has the option of deferring the cash payment by making 4 quarterly payments of $250,000. Grown Rogue will also receive its full fee for the work performed in Q3 and retains its 10,000,000 warrants in Vireo.
Lowell Farms has entered into MSAs with two LA dispensaries. Under the terms of the agreements, Lowell Farms will assume operational management of the retail stores, with an option to acquire equity ownership through a non-binding LOI.
Canopy Growth completes acquisition of Wana. Canopy USA now owns 100% of the outstanding equity interests in Wana. Together with the completed acquisition of ~75% of Jetty, Canopy USA is fulfilling its ambition of establishing a leading brand-focused cannabis company in the U.S.
RIV Capital and Cansortium have received New York Cannabis Control Board approval for merger. The Business Combination is expected to close in Q4 2024.
📄 Company Updates
StateHouse enters bankruptcy pursuant to Canada’s Bankruptcy and Insolvency Act following Initiation of Receivership Proceedings in the U.S. In connection with the Receivership Proceedings, the Company and the Lenders entered into a stipulation dated October 9, 2024 for the appointment of a receiver to preserve the ongoing operations of the business in CA. Harborside founders would consider buying it back.
West Coast Cure voluntarily recalled at least 20 products that contain impurities. Nearly all the products were packaged at least a year ago, which is a common shortcoming related to recall alerts industrywide. “Rather than continue to drag the matter out, West Coast Cure has decided to put it to rest and voluntarily recall all of the remaining products,” the company said in a statement posted on its website. “WCC understands that there are self-interested people who may try to spin this decision in a negative light. But make no mistake: this decision is not an admission of any wrongdoing.
Tilray Brands Q1 FY 2025 earnings. Narrower-than-expected loss but fell short of revenue estimates with revenue of $200M, missing projection of $219.2M. Net revenue grew 13% YoY, however, most of that growth came from M&A in the alcoholic beverages segment, the cannabis segment declined (13%) YoY to $61M. Adjusted EBITDA was $9.3M compared to $10.7M in the prior year quarter.
Fernway generated $11.1M in wholesale revenue and annualized retail GMV of $95M+ in Q3 2024. This represents +133% YoY growth. Fernway’s growth has been bolstered by its entry into the NJ cannabis market in late 2023 as well as the NY cannabis market in early 2024 through its partnership with UrbanXtracts. Fernway signed an agreement to license the distribution of its brand to Rodeo, a CT-based cultivation and manufacturing business, and Fernway expects its products to be available in Connecticut in early 2025.
SLANG Worldwide Enters into Waiver and Support Agreement with Secured Lenders in Anticipation of Upcoming Maturity Date. Pursuant to the Support Agreement, the Lenders have agreed to a standstill and to not take any steps under the Credit Agreement, related guarantees and security documents until the earlier of: (i) the Maturity Date, and (ii) the occurrence of certain specified termination events, in exchange for a payment of $1.75M and enhanced reporting covenants from the Company during the term of the standstill period. The Company does not anticipate being able to repay amounts owing under the Credit Agreement at the Maturity Date.
Green Check Surpasses $1B In Monthly Cannabis Sales Deposits. The company’s network now includes over 170 financial institutions and 11,000+ cannabis-related businesses (CRBs) across the U.S.
Happy Valley Expands Globally with Cannabis Genetics Designed for Modern Cannabis Growers. Their new venture, Happy Valley Genetics, leverages this expertise in cultivation to offer seeds that promise reliability and performance, backed by Certificates of Analysis (COAs), including detailed pictures documenting the entire process from seed-making and pheno-hunting, to bringing the final end products like dry flower and solventless concentrates to market.
🏬 Retail / Cultivation
Gotham opens third location at The Refinery at Domino in Brooklyn. Gotham's first Brooklyn outpost joins locations in Manhattan and Upstate New York.
Higher Collective Opens Adult-Use Cannabis Shop in Bridgeport, CT. The store, owned in part by Connecticut native Keanaha Abrams, officially opened October 11th.
Cheech and Chong open Dispensoria in Portland, ME. About 1,000 people lined up Sunday afternoon for a chance to meet the 1970's comedy duo.
Brown Budda New York opens its first dispensary in Southampton, NY. The dispensary is strictly delivery and curbside pick-up only.
RIV Capital and Etain Commence Adult-Use Sales at Kingston Dispensary. The opening follows the recent launch of adult-use sales at its Etain Manhattan location, as well as the New York debut of the MOODS line of branded cannabis products.
The Flowery opens West Palm Beach, FL dispensary. This is the company’s 10th dispensary in FL.
Planet 13 opens Planet 13 Port Orange, the Company’s 28th dispensary in Florida and 32nd nationwide. Located adjacent to prominent shopping areas, Planet 13 Port Orange is just 3 miles west of the beach and 8 miles south of the iconic Daytona International Speedway.
Trulieve opens dispensaries in Bonita Springs and St. Augustine. The company now has 154 dispensaries in FL.
MariMed Commences Cultivation Operations in Mt. Vernon, IL Grow Facility. The first harvest is expected in early 2025, at which time the Company will sell Nature’s Heritage flower and concentrates through its retail and wholesale channels.
High Tide opens 70th Canna Cabana Dispensary in Ontario. This opening brings the total number of Canna Cabana branded dispensaries to 184 in Canada, 70 stores in the province of Ontario and 10 in the city of Toronto.
🌱 Product
Curaleaf offers politically-inspired marijuana strains named after presidential candidates. Curaleaf calls it their 'Toke the Vote' campaign. The chain is selling three election-themed strains: Kamala Kush, Donald OG, and Space Jill.
Grön Launches Two New MEGA Flavors: Strawberry Lemonade & Sour Grape. Both products are set to hit the shelves in Arizona, New Jersey, New York, Missouri, Oregon, and Ohio this October. Grön’s Strawberry Lemonade MEGA is a revolutionary addition to the edible market, marking the first of its kind with a 1:1 THC/CBC ratio, packing 100mg THC and 100mg of CBC per piece. On the other end of the spectrum, Grön is proud to introduce the Sour Grape MEGA, affectionately known as “The Big Chill.” This 100mg THC-infused edible is designed for those seeking deep relaxation and calm, with a balanced indica-like effect.
🧔 People
Dr. Manfred Ziegler Joins Flora Growth Corp. as Managing Director. With the appointment of Dr. Ziegler, Flora Growth is poised to accelerate its ambition to become one of the leading cannabis companies in Germany. Dr. Ziegler brings decades of expertise, notably his leadership as Managing Director of CC Pharma and his role in the sale of CC Pharma to Tilray.
🎙️ Interviews
The Rise of BRĒZ | Startup CPG
BDC with Peter Sack And Scott Gordon, Chicago Atlantic | TDR
Beverage Superstars (Cann, Happi, MXXN) | Luxury Meets…
Flying High With Lifted Made CEO & Founder Nick Warrender | CannabisNow
The Future of Cannabis w/ Will Muecke | The Interview w/ Leslie Heaney
what could be the reason behind abrupt termination...?
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Grown Rogue terminates advisory agreement with Vireo. As consideration for the early termination, Vireo will forfeit and return for cancellation 4,500,000 of the 8,500,000 share purchase warrants in Grown Rogue that are held by Vireo at a CAD$0.225 strike price and pay Grown Rogue $800,000 in cash. Vireo has the option of deferring the cash payment by making 4 quarterly payments of $250,000. Grown Rogue will also receive its full fee for the work performed in Q3 and retains its 10,000,000 warrants in Vireo"