Grow Life 420

#KahliBuds #MMJ #CBD #THC

Red White & Bloom Brands Inc. (CSE: RWB) (OTC: RWBYF) filed its consolidated audited financial statements on Tuesday, signaling progress towards the lifting of the cease trade order by the British Columbia Securities Commission.

Despite the delays, the Toronto-based company said it expects to complete the required filings and disclosures for the first quarter of 2023 by May 30. The order was implemented on May 8 due to delays in the company’s year-end audit.

Fourth Quarter Results

The company reported that in the fourth quarter, revenues were $16.5 million, a $14 million increase from last year’s fourth quarter revenue of $2.5 million. Operating expenses were $10.3 million, a $15.2 million increase from last year. Losses from operations before other expenses (income) were $3.4 million in the quarter.

Other expenses in the quarter were $213.2 million, an increase of $224.7 million from 2021. Included in other expenses for the fourth quarter of 2022 are non-cash charges for intangible assets and goodwill impairments totaling $214.8 million.

PharmaCo Hit

In February 2022, Red White & Bloom closed its acquisition of PharmaCo. Revenue of PharmaCo after the acquisition date at the end of 2022 amounted to $22.6 million.

Net loss for the year was $173.9 million, which included a goodwill impairment of $174.1 million.

If the PharmaCo acquisition had closed on Jan. 1, 2022, the company said in its filing it estimates it would have recorded revenue of $101.5 million and a net loss of $241.5 million, including a goodwill impairment of $174.1 million.

That would have resulted in an increase in revenue of $4 million and a decrease in net loss of $639,429 for the year ended Dec. 31, 2022.

Full-Year Results

For the fiscal year 2022, Red White & Bloom reported revenues of $97.5 million, up by $60.2 million from 2021. The company’s gross profit before fair value adjustments was $27.5 million, a $8 million increase from 2021.

Despite the increase in revenue and gross profit, losses from operations before other expenses were $17.3 million, although this was a decrease of $6.8 million from the previous year.

The company’s most notable financial figure for 2022 is its net loss, which totaled a staggering $245.5 million, a significant increase from $39 million in 2021.

Still, CEO and Chairman Brad Rogers expressed optimism about the company’s growth.

“With the successful launch of our distribution operations in Michigan in January 2022, the closing of our acquisition in Michigan of both retail and cultivation operations, and our continuing focus on expanding our medical retail in Florida, the company is focused on growing market share in its key states,” he said in a statement.

Rogers added that the company is making progress with its asset-light strategies in targeted legal states, incorporating both licensing arrangements and leveraging local execution capabilities in both manufacturing and logistics.

“RWB has now added the states of Arizona and Missouri and continues to proactively negotiate other high-potential, emerging legal markets,” he added.

People Moves

The company implemented a series of changes within its management team to enhance financial and operational efficiencies. These changes include the appointment of Edoardo Mattei as its new chief financial officer in March 2023.

President and director Colby De Zen said the company was focused on “right-sizing” the business during the second half of fiscal year 2022.

“Through the rationalization of operating costs, reduction of debt…restructuring of operations, and key divestitures such as the sale of Mid-American Growers’ assets … significant progress was made,” he said.

During the fourth quarter of 2022, the company made significant strides, securing a lease for a medical retail location in Clearwater, Florida, and launching Platinum Vape product offerings in Arizona.

In March 2023, trading on the OTCQX for the company was suspended, pending the completion of form 20Fs for full-year 2021 and full-year 2022. The company stated that it is working with its advisors to complete the required filings and will work in collaboration with the SEC and the OTCQX to confirm a timeline for reinstatement.

The post Red White & Bloom Takes Hit on PharmaCo Deal appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF), a multistate cannabis operator and retailer reported steady year-over-year growth in its financial results for the first quarter ended March 31.

The company noted that systemwide pro forma revenue rose 7% from Q1 2022 to $34.8 million. This beat expectations by $3 million. The GAAP revenue saw an even more substantial growth of 17% year-over-year, reaching $30.4 million.

However, adjusted EBITDA fell to $3.5 million from the reported $7.4 million in Q1 2022. Net loss was $11.3 million, compared with the year-ago loss of $5.8 million.

In a statement, 4Front CEO Leo Gontmakher expressed satisfaction with the company’s performance, stating, “We ended the quarter with positive operational cash flow in all our core markets, with the exception of California.”

Despite the challenges in the California market, the company anticipates reaching cash flow breakeven in the state within 60 days.

Gontmakher also announced that the company significantly expanded its operational capabilities in Illinois with the complete of construction on the Matteson facility.

“With these enhanced capabilities in the state, we are well on our way to achieving a complete vertically integrated license portfolio in Illinois as we continue to pursue accretive M&A opportunities to grow our retail dispensary footprint,” he said.

In addition, 4Front has reached terms with its senior secured debt provider, LI Lending, to extend the maturity of its senior secured debt for an additional two years. The move is expected to raise over $30 million of strategic senior security-type financing and expand the company’s debt to sufficiently fund the expansion of its retail base in Illinois.

The company also highlighted several operational milestones in Q1 2023, including:

• Deepening its operational footprint in Illinois.
• Strengthening its position in Massachusetts.
• Diversifying its product portfolio in Illinois.

The company reported $4.6 million of cash and $50.1 million of related-party long-term debt not due until May 2024.

Looking ahead, 4Front expects its EBITDA margins to return to the mid-20% range toward the end of the year, with potential for further increases as operations in Illinois continue to expand in 2024.

The post 4Front Ventures Provides Rosy Outlook as it Expands Illinois Operations appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported modest first-quarter growth, despite economic headwinds and the closure of several retail locations, according to the cannabis company’s financial results for the period ending March 31, 2023.

The U.S.-based cultivator, manufacturer, and retailer of cannabis products said its top-line revenue grew 1% from the same quarter in 2022 to $124.5 million. The growth beat expectations by $1.3 million and was largely driven by strong performance in the East Coast markets, particularly New Jersey, Virginia, and West Virginia.

In a statement, CEO Nicholas Vita cited the company’s efforts to optimize its portfolio, manage its capital structure, and reduce costs as key factors in its performance.

The company also highlighted the successful launch of its Stash Cash loyalty program and operational changes, including the sale of its Missouri operations and closure of unprofitable Colorado retail locations. While these changes didn’t materially impact first-quarter results, Vita said they will influence future profitability. The company expects to see the effects of its cost-reduction measures, non-core asset divestitures, and improvements in cultivation and manufacturing utilization rates in the coming months.

Columbia Care opened two locations in Virginia and one in West Virginia in the first quarter, contributing to the company’s growth. It has plans for further expansion, with five more dispensaries under development in 2023, including three in Virginia, one in New Jersey, and one in Maryland.

The company maintained its wholesale revenue at $15.2 million in Q1 2023, matching the figure from Q4 2022. However, retail revenue declined 1.5% sequentially due to seasonal factors and the closure of three retail locations at the beginning of the quarter.

In addition to its retail operations, Columbia Care has been focusing on its cultivation and manufacturing capabilities. The company reported a decrease in cultivated cost per gram of more than 11% YoY in Q1 2023 due to operational efficiency gains. It also noted a 4-percentage point increase in its share of concentrates within its wholesale revenue product mix.

Columbia Care ended the quarter with $40.2 million in cash. On March 13, the company divested its interests in the Missouri market for approximately $7 million. Later in March, it extended the maturity date of its 13% senior secured notes from May 2023 to May 2024.

The company said it continues to collaborate closely with Cresco Labs on the divestiture transactions needed to obtain regulatory approvals for the acquisition of Columbia Care. However, no updates were provided on the timing for the execution of agreements regarding outstanding divestiture transactions.

The post Columbia Care Sees Revenue Uptick Despite Retail Closures appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

A batch of cannabis earnings dropped this week, and two industry leaders, Trulieve Cannabis Corp. and Verano Holdings Corp., offered contrasting financial snapshots that highlight how the two have approached Florida’s medical market.

Both Trulieve and Verano are excited about their future growth prospects, particularly concerning the opportunities in Florida, as the two craft strategic plans to seize potential growth in the Sunshine State.

Trulieve, based in Tallahassee, Florida, reported a significant net loss of $64 million for Q1 2023, yet remains rosy about its future growth.

Trulieve’s revenue for the quarter stood at $289 million, with 95% attributed to retail sales. This figure fell slightly short of the Yahoo Finance average analyst estimate of $292 million.

However, the company’s sizable gross profit of $150 million, which represents a GAAP gross margin of 52%, indicates the company’s ability to generate profits before operating expenses and taxes.

Despite the net loss, Kim Rivers, CEO of Trulieve, expressed optimism during the company’s earnings call, emphasizing the importance of the company’s scale, service, operational flexibility, and strong balance sheet for success in the current environment. She also highlighted the company’s emphasis on cash preservation and generation as it prepares for future growth.

Trulieve is still extremely bullish on the potential legalization of adult cannabis use in Florida, too.

“The adult-use opportunity in Florida is the most significant near-term catalyst for Trulieve,” Rivers said, touting that the campaign had gathered enough raw signatures for inclusion on the November 2024 ballot. As of publication, the state had not verified the signatures.

Rivers estimates that Florida, with its 22 million residents and 138 million annual tourist visits, could become a leading legal cannabis market, potentially reaching $6 billion in annual revenue.

Florida’s medical marijuana market is also set to expand following the passage of a bill that extends the renewal of marijuana prescriptions over telehealth and authorizes nearly a dozen additional licenses for Black farmers to enter the cannabis industry.

According to sources familiar with the matter, the new Pigford licenses will not reduce the number of licenses from a separate application process – which concluded during the last week of April – that offered an additional 22 licenses.

Chicago-based Verano, in contrast, reported a much smaller net loss of $9 million alongside a 12% increase in revenue to $227 million compared to the same period in the previous year. Verano’s gross profit was $109 million, equating to 48% of its total revenue.

During an earnings call, CEO George Archos expressed satisfaction with the company’s first-quarter performance, attributing the positive results to strategic positioning, particularly in the Florida market.

“In Florida, we recently took the number two spot in terms of ounces of smokable products sold while also preserving the pricing integrity of our catalog, a reflection of our higher-quality, all-indoor grown flower,” Archos told investors.

The company operates 66 MÜV dispensaries across Florida and plans to open more by the end of the year. Like Trulieve, Verano also sees potential in the possible legalization of adult use in Florida and anticipates strengthening its foothold in the medical market in the lead-up to the potential 2024 ballot initiative.

In addition to their retail operations, both companies are expanding their cultivation and processing capacities. Trulieve currently operates 186 retail dispensaries and more than 4 million square feet of cultivation and processing capacity across 11 states. Verano, meanwhile, runs operations in 13 states, including 126 dispensaries and 14 cultivation and processing facilities

The post Trulieve, Verano Eye Florida for Growth Despite Contrasting Q1 Outcomes appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

The rise of the cannabis industry has created numerous opportunities for entrepreneurs and brands to make their mark. But many newcomers to the professional industry may not know where to start.

Enter Virgil Abloh. Before his death in 2021, the legendary designer unveiled his “free game” mentorship platform, a resource center for early-stage brands that focuses on empowering marginalized individuals through mentorship and resources.

The platform provides everything from tutorials on building a website to inspirational content to guide your brand-building journey.

“The goal of this resource is to uplift more than a few. I will continue to open doors for those that come from the fringe and help them be awarded opportunities usually left for the center,” Abloh, who was Kanye West’s creative director at one point, wrote at the top of the page in old type font.

Abloh’s initiative is supported by the “Post-Modern” Scholarship Foundation, in partnership with the Fashion Scholarship Foundation, to offer Black students education in fashion.

Only a few brands in the cannabis space have been able to build a brand in that same vein, with Cookies being one of the best examples. Others have tried to replicate the formula, but a brand is only as strong as its spirit and foundation.

For cannabis startups, Abloh’s “free game” could provide a valuable lens into the machinations of merchandising and early brand building.

Lessons for Cannabis

Good examples of effective branding strategies and valuable lessons for early-stage cannabis brands seeking to establish themselves in the market include Cookies, Jungle Boys, and Miss Grass.

• Cookies, co-founded by rapper Berner and cultivator Jigga, started with some screen printing and a small cannabis dispensary in San Francisco. Through strategic multidisciplinary branding and marketing, its dispensaries and clothing division have evolved into an international powerhouse, known for quality strains, apparel, and accessories.
• Jungle Boys similarly built a strong reputation in the industry by focusing on high-quality, exotic strains and a unique brand identity.
• Miss Grass, co-founded by Kate Miller, distinguished itself by emphasizing education and content creation to build a loyal customer and community base.

“When we launched in January of 2018, we didn’t launch with product. Our product was our online magazine,” Miller noted. “That was the only thing we did for two and a half years before we launched product, and our online magazine has now over 2,000 pieces of editorial content – 99% of which are all education-based.”

Having a unique visual identity, brand story, and value proposition can help attract and retain customers – and differentiate your brand in an overcrowded marketplace.

Talk the Talk

Cookies, Jungle Boys, Miss Grass, and even Seth Rogan’s Houseplant have reached wide audiences by utilizing multiple channels for promotion, such as social media, collaborations, and events.

Diversifying promotional efforts can ensure that emerging brand builders reach the broadest possible audience.

Aligning with influencers and collaborators can also significantly contribute to a brand’s success. And by partnering with individuals who share your brand’s vision and values, you can further elevate your brand in consumers’ eyes.

Cookies’ collaborations with notable figures in the music and cannabis industries have contributed to its global recognition, while Jungle Boys has used its connections within the core cannabis community to enhance its credibility.

Walk the Walk

Concentrating on quality and innovation is another crucial factor in building a successful cannabis brand. Prioritizing product quality and continually evolving to meet consumer demands helps solidify reputation and encourage customer loyalty.

Demonstrating a commitment to positive social impact can help companies foster goodwill and attract customers who value ethical business practices.

Cannabis brands can contribute to their communities by supporting local organizations, advocating for social justice, or participating in charitable initiatives. Abloh demonstrated this quality and built a name for it through his support for scholarship.

Focusing on a strong brand identity from the outset, along with effective promotion, product quality, and community involvement, is a solid foundation for long-term success.

The post How to Build a Cannabis Brand appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

Less than two months since recreational marijuana sales launched in Missouri, a shortage has emerged, causing prices to skyrocket.

Cultivators have struggled to meet the overwhelming demand, resulting in higher production costs for manufacturers and steeper prices for consumers at dispensaries, KCTV 5 reported.

A significant factor contributing to the demand surge is the influx of customers from Missouri’s eight bordering states, only one of which has legalized recreational use. In the Kansas City area alone, around 40% of all cannabis dollars spent come from neighboring Kansas counties.

As a result, prices for marijuana products are expected to increase by 50%-60%.

It may take until July for the market to see any relief from the price hikes, as cannabis plants typically require four months to flower and bud, meaning additional supply won’t be available until current plantings mature.

Despite the expected price hikes, Missouri still sports some advantages over its nearest competitor, Illinois. Illinois’ products tend to be more expensive, and its tax structure can reach up to 35%, whereas Missouri taxes retail marijuana sales at a flat 6%.

The pricing difference attracts customers from Illinois to hop the border for marijuana products. Increasing competition in St. Louis and along the two states’ borders has been expected among retailers and analysts.

Missouri dispensaries sold almost $71.7 million worth of recreational marijuana in their first month, a milestone that took Illinois nearly a year to achieve.

Illinois recreational cannabis product sales by legal retailers fell to $120.5 million in February, according to the state’s Department of Financial and Professional Regulation, the lowest since the same month in 2022.

The data shows a sales plateau occurring in the state, though future figures will paint a clearer picture.

That represents a 15% decrease in sales to customers from out-of-state during that period, according to Cantor Fitzgerald. In Illinois cannabis stores located near the Missouri border, the decline was even more significant, with a drop of up to 30%.

Missouri expects to generate substantial tax revenue from marijuana sales to help fund various programs. The overwhelming success of the launch has led many local governments to consider implementing their own taxes on recreational marijuana sales.

Missouri also benefits from a well-established retail footprint born from its medical cannabis market, as well as a smooth compliance process. And although cities and counties have the option to opt out, the public must vote for the decision rather than leaving it solely to the city or county officials.

Around 3% of Missourians are currently registered in the medical program. The number of consumers has been projected to rise to around 10% of the state population, or 600,000 individuals, with the adult use market – though consumption is notoriously underreported.

To sweeten the pot, revised regulations introduced in Missouri in December permit increased quantities per visit. Medical cannabis patients are now authorized to purchase a maximum of six ounces within a 30-day span, a rise from the prior four-ounce cap.

All other individuals aged 21 and above can buy up to three ounces of recreational-use flower, or the THC equivalent.

The post Missouri Marijuana Shortage Drives Up Prices appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) posted results that showed rising margins despite lower revenue, driven by cost-cutting measures amid a congested supply side in California and Oregon.

The West Coast operator reported its financial and operational results for the third quarter ending Sept. 30.

Revenue totaled $5.5 million, down 36% from $8.7 million in the same quarter last year. Halo said that revenue was affected by lower pricing in Oregon and California.

Net loss for the quarter totaled $5.6 million, an improvement of 44% versus $10 million in the same quarter last year. Earnings were for a loss of 23 cents per share versus a loss of $806 a year ago.

“Despite downward pricing pressure, oversupply, and other challenging factors, Halo’s financial metrics have improved,” CEO Katie Field said. “While revenue is down from Q3 2021, in California sales grew and Oregon is down due to a shift away from unattractive low-margin business segments such as consignment sales.”

Halo reported a gross profit of $1.7 million with a margin of 30.7%, versus 2021’s third quarter gross profit of $1.6 million with a margin of 18.8%.

The company said that it raised $2.06 million in debt financing and repaid $1.8 million from convertible debentures. Cash inflow was $142,235 in the quarter, versus $2.03 million in the same period last year.

Halo had $1.6 million worth of unrestricted cash available by the end of the quarter.

“I look forward to continuing our hard work to improve Halo’s performance,” Field added. “We have reduced our burn rate and still have further room to trim overheads. Oregon was down in Q3, but September was the best month in the time period, demonstrating an encouraging trajectory.”

Adjusted EBITDA was a loss of $1.24 million, versus a loss of $4.5 million in the prior year’s third quarter.

Field added, “In Oregon, we remain focused on maintaining price and increasing distribution in key product categories such as cartridges and indoor flower while using our inventory position to rekindle relationships with old customers. Furthermore, the sun-grown 2022 harvest is shaping up nicely and we expect prices to rebound slightly meaning sales should continue to pick up in Oregon through year end.”

The post Halo Stretches Margins Despite Lower Q3 Revenue appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

Voters were taken to task in five states on whether to approve recreational marijuana, and the results were mixed.

Three states rejected the ballot measures before them:

• Arkansas (56.2% opposed)
• South Dakota (52.9%)
• North Dakota (54.9%)

However, Maryland (65.5%) and Missouri (53.1%) both approved adult-use cannabis.

While those in the industry hoped for a clean sweep, or even a majority grab, many view the results as meaningful developments while federal reconsideration of the plant’s legality gears up.

Troy Datcher, CEO, The Parent Company

Today, Maryland voters overwhelmingly voted to repeal the failed policy of cannabis criminalization, which has resulted in the disproportionate incarceration of people of color, particularly in Maryland’s urban communities, for generations. I’m encouraged that Question 4 mandates automatic expungement for eligible cannabis offenses and contains robust resentencing provisions for those that were unfairly criminalized by the decades-long War on Drugs in Maryland.

The fact that Question 4 garnered more support than any adult-use cannabis ballot measure in the country’s history speaks to the shared support that Americans of all political stripes have for moving past the unjust cannabis laws that have criminalized Americans for nearly a century. Tuesday’s vote also reflects the massive potential of adult-use legalization to stimulate Maryland’s economy, creating tens of thousands of new jobs for its residents and generating considerable tax revenue for the state.

Matt Darin, CEO, Curaleaf

We’re thrilled with the Maryland outcome, of course, as we have four dispensaries in the state, and it’s also great to see states like Missouri also adopting adult use. And even though it didn’t pass, seeing more Republican-leaning states like North Dakota and Arkansas continue to have cannabis on the ballot is encouraging. This sends a signal to the federal government that there is widespread public support for cannabis legalization – over 68% by the latest polls.

With 21 adult-use states now, the next step we need to see is SAFE banking, along with sensible legislative reform that provides relief for cannabis businesses of all sizes, and we’re encouraged by the bipartisan support we’ve seen on that front of late.

Joe Caltabiano, co-founder, Cresco Labs

Although the industry would have preferred that every state cannabis initiative had passed, one of the best outcomes of this election is that it increases the number of U.S. Congressional representatives who now serve voters that have declared their preference for a legal and regulated cannabis industry.

With the success of the Maryland and Missouri ballot initiatives, any remaining excuses that further delay meaningful federal cannabis reform – particularly SAFE banking – lack any merit. It is time that Congress listens to the majority of states with legalized cannabis industries that are struggling under the weight of unfair taxation, and regulatory and financial burdens that no other industry must endure.

Brian Vicente, founding partner, Vicente Sederberg

This was yet another historic election year for the cannabis policy reform movement. States in all four corners of the country voted to roll back failed prohibition policies and replace them with sensible laws that regulate cannabis similarly to other legal products. These new state laws will end the needless criminalization of countless individuals who use cannabis responsibly for medical, therapeutic or recreational purposes.

These states will see significant economic benefits as the legal cannabis industry continues to expand and supplant the illicit market. The new business opportunities, job creation, and tax revenue that accompany these news laws could not come at a better time, as states work to make up ground lost to the ongoing coronavirus pandemic.

Nancy Whiteman, CEO, Wana Brands

We applaud the decision by Missouri voters to enhance the lives of residents by approving the sale of recreational cannabis to adults. Not only will the passage of Amendment 3 help raise millions of revenue for critical veteran and mental health services, but Missouri residents with low-level cannabis offenses will be able to expunge these convictions from their record, finally addressing the inequities of the War on Drugs.

The rejection of Issue 4 by Arkansas voters represents a lost opportunity by the state to reduce the workload of police while raising needed tax revenue for state services and to support law enforcement. We are hopeful that leaders in the state will continue to push for expansion of access to cannabis for adults in the coming months and years.

Jason Nelson, CEO, BeLeaf Medical and Swade Medical Dispensaries

In what was truly a once-in-a-lifetime opportunity, Missouri voters made history in this election by approving recreational sales of cannabis in a way that helps to fund critical needs of Missouri while addressing some of the injustices of the failed War on Drugs. We look forward to working with the state to get recreational sales underway, and we are excited by the opportunities to hire more Missourians and increase our engagement with community organizations across the state as BeLeaf expands its operations.

Congratulations to everyone who worked so hard to make this happen. Now the consequential work to maximize the collective benefits from Amendment 3 truly begins.

Gary Santo, CEO, TILT Holdings

Congratulations to voters in Missouri and Maryland on the passage of their respective cannabis ballot initiatives. These states now join 19 other states where adult-use cannabis is legal.  

These state legislatures now have the important task of establishing regulatory frameworks for adult-use markets that serve the very citizens and communities that voted for greater access to cannabis – creating jobs, generating tax revenue, and driving investment, and revitalization efforts.

And for those disappointed voters in Arkansas, North Dakota and South Dakota, we encourage you to continue advocating the economic and health benefits of cannabis. The industry will continue to do the same at both the federal and state level to support moving us all forward to legalization and greater accessibility.

The post Cannabis Industry Reacts as Adult-Use Legalized in 2 More States appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

Canadian cannabis producer Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC) has agreed to absorb a trio of companies within its newly formed holdings entity, Canopy USA.

Under the deals, which still need approvals from shareholders, Canopy USA will acquire all of Acreage Holdings (OTC: ACRHF), as well as Jetty Extracts and Wana Brands, in a longstanding bid to gain entry into the U.S. cannabis industry.

“As the growth of the U.S. cannabis market continues rapidly at the state level, this strategy enables us to take control of our own destiny and capitalize on the once-in-a-generation opportunity in the largest cannabis market in the world,” said Canopy CEO David Klein.

Canopy’s core business will not immediately benefit from the new stream of sales since plant-touching companies in Canada cannot grow or sell marijuana in the U.S. because of the federal prohibition.

Still, President Joe Biden recently signaling a review on how the drug is classified could provide a pathway to allow Canopy to operate in the U.S.

Canopy fashioned a deal three years ago to buy Acreage for $3.4 billion once the U.S. legalizes marijuana federally. With the issue mostly stuck in limbo, the new move fast-tracks the closing with Canopy USA completing the takeover, the company said.

“This strategy and positioning are true differentiators, which we expect to enable our investors and brands to realize value in the near term while positioning Canopy for profitable growth and a fast start upon U.S. federal permissibility,” Klein said.

Canopy USA will have its own management and board, on which Canopy Growth Corp. won’t have voting rights.

The news comes as somewhat of a surprise, as many deals have stalled or fallen apart completely in 2022.

Last year, the industry was rapidly consolidating as optimism from rising sales grew and more U.S. states moved to legalize the crop. Now, consolidation has become a lifeline for struggling operators facing hard times as the industry continues to see tighter projections and cash flow crunches.

The volume of mergers and acquisitions activity this year fell 80.2% from 2021, according to Oct. 14 data from Viridian Capital Advisors. Additionally, $4.72 billion worth of deals are still being considered and 145 deals have closed this year, versus $23.82 billion in transaction value and 271 closings last year.

Shares of Canopy Growth, which has a market value of $1.1 billion, was up 23% as of press time.

The post Canopy Growth Forms New Holding Company to Speed US Entry appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

Silo Wellness Inc. (CSE: SILO) (OTCQB: SILFF) inked a binding deal with New Frontier Ranch in Jackson County, Oregon, to set up a new psychedelic resort.

The ranch is a 960-acre property in the Green Springs area, east of Ashland, with swaths of space between existing log cabins and campsites.

“Under Oregon’s tough rural land-use laws, this property is truly a gem that could allow for scaling for psychedelic retreats rather quickly at a lower price point,” said Mike Arnold, Silo Wellness founder and CEO. “Absent full legality and total removal of the dead hand of the government – which is still necessarily present in this emerging market – scaling is the only way to make this industry affordable while ensuring client safety.”

The CEO said that the property has an “abundance of water rights in this drought-stricken portion of our beautiful state” and has court-approved camping spots “with room to expand” due to a grandfathered special court decree.

The deal, however, depends on how county residents vote in the upcoming Nov. 8 election.

More than half of voters across Oregon passed Measure 109 in 2020, which allowed limited use of psilocybin. The measure automatically opted in local governments.

However, the statute also gave cities and counties the option to back out before it goes into effect next year. Local officials can ask residents to vote on either a two-year moratorium or a complete ban on psilocybin services altogether.

The Jackson County Commission referred a ban to residents.

Arnold believes that the county may end up opting out “as it was a very close election in 2020 with only 51.19% voting yes,” he said.

Arnold pointed to swirling concerns around the state’s handling of more recent drug laws.

When Oregon passed The Drug Addiction Treatment and Recovery Act two years ago, also known as Ballot Measure 110, it decriminalized possession of hard drugs and set aside hundreds of millions of dollars for recovery services and treatment.

The results, however, have been mixed so far. Fatal overdoses have risen 20% over the past year, and many treatment programs have not been able to answer the demand as they reel from staffing and funding headwinds.

Because of this, “many rural Oregonians believe they have suffered from increased crime resulting from the now more open and notorious use of hard drugs in their communities,” Arnold said.

“They often believe that the increased demand resulting from the decrease in legal risk from consumption has led to an increase in supply and the criminal consequences of that trade.

“The increased supply to meet this increased demand has to come from somewhere, and it isn’t some bucolic farm – it’s from drug dealers with organized crime connections,” he said.

Additionally, the CEO said that rural residents also didn’t see much of the economic benefits from Oregon’s recreational cannabis ballot measure, because it did not allow county governments to tax cannabis farms, only dispensaries.

“Since most dispensaries are located in cities, they received most of the law enforcement hassle with the farms and the increased vehicular traffic on rural roads and the now ubiquitous smell, but little of the tax benefits,” he said.

Arnold noted that Measure 109 should not fall into the same net of controversy.

“This is a services industry not a product industry,” he said, adding that legal mushroom cultivation is more low-key and consumes much less resources than growing cannabis.

“Additionally, our experience operating legal retreats in Jamaica is that these have about as much community impact as a yoga or quilting retreat,” he said. “They are centered around introspection through meditation, self-reflection, journaling, and group integration. The community impact is just not comparable to the effects of cannabis.”

New Frontier owner-operator David Kaplan echoed the sentiment.

“Living on this property for several years, I see so much potential for the land to be an eco-village destination location totally sustainable with organic agriculture, energy, and building materials,” he said. “The ranch has 287 days of year of sun per year and the most water in the area with ample wind and wood resources.”

Arnold said that Oregon state laws “jealously protect this non-renewable natural resource.”

Kaplan said that his vision for the property is as a “sacred sanctuary” for holistic health and wellness.

“Mushroom therapy is just one potential component of a much larger plan for rejuvenation and wellness.”

The post Silo Wellness Looks to Open Ranch Retreat as Oregonians Vote on Psilocybin Again appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

Verilife, a private Buffalo, New York dispensary owned by PharmaCann, Inc. will become the first location in the state to  sell immature plant clones to certified medical cannabis patients and caregivers to grow in their home.

“New York’s certified patients have waited for this opportunity, and we could not be more excited for Verilife to lead New York’s medical cannabis industry into this new era,” said Jeremy Unruh, senior vice president of public and regulatory affairs for Verilife.

Verilife said in a news release that the company had spent months working with the Office of Cannabis Management (OCM) to provide home grow starter stock. The company added that ability to grow at home will make it more affordable for patients to have access to long-term treatment and relief.

The news comes a month after the New York Cannabis Control Board issued regulations to govern medical cannabis home cultivation allowing registered patients to grow as many as six plants of their own and for caregivers to grow up to 12 plants.

New York’s MMJ program had previously prohibited home cultivation.

New York regulations allow patients 21 years of age or older, with proper designation, to grow up to three mature and three immature cannabis plants at a given time. The state will also allow a designated caregiver for multiple patients to grow up to twice that amount of both immature and mature cannabis plants.

Verilife home cultivation clone strains include Lavender, Pineapple Super Silver Haze and Pink Lemonade. The company said that clones are available on a first-come, first-served basis at Verilife’s Amherst location while supplies last. All sales of medical plant matter are final.

Clones will eventually be available in more locations throughout the state.

“Verilife has been leading the charge in New York since day one,” said Unruh. “We were the first regulated cannabis operator licensed in the Empire State. We were the first to deliver regulated medical cannabis products to homebound medical patients. We were the first to wholesale our products to other medical dispensaries. Our patients know they can count on Verilife for best-in-class, safe and reliable products.”

It is one of the few aspects of the New York cannabis program that seems to be showing signs of progress. The adult-use program remains undefined by any established rules or regulations and the illicit market continues to be become more entrenched every day.

The post Verilife Cleared To Sell First Cannabis Home Grow Kits In New York appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife

#KahliBuds #MMJ #CBD #THC

Florida medical marijuana patients might soon have the option to buy their medicine from a gas station next year.

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) said on Wednesday that it struck a deal with Alimentation Couche-Tard Inc. to start selling cannabis via Circle K convenience stores.

The Illinois-based multistate operator plans to test the waters next year, starting with 10 RISE Express”-branded dispensaries, based off its RISE dispensaries.

“This is a futuristic deal,” Green Thumb CEO Ben Kovler told Bloomberg.

The RISE Express stores will be adjacent to Circle K stores, meaning the sales would still be independent from the retailer, the company said. But it would up the convenience factor for many patients, Kovler said in the announcement.

The news comes one day after Couche-Tard inked a $16 million financing deal with Fire and Flower as the Quebec-based convenience store giant further wades into the cannabis space. Former Couche-Tard executive Stéphane Trudel was tapped to lead Fire and Flower under the CEO banner during a summer takeover, as the companies deepen their partnership.

Agreement details

Under the deal, Green Thumb can lease space from the more than 600 Circle K stations currently operating in Florida. RISE Express stores will sell GTI cannabis products such as flower, pre-rolls, edibles, and vapes.

“The opening of RISE Express stores at Circle K locations is a game-changer. Convenience is a strong channel in retail, and people want more access to cannabis,” Kovler said in a news release.

“The new RISE Express model is a huge step forward in making it easier and more efficient for patients to purchase high-quality cannabis as part of their everyday routine when stopping by their local convenience store.”

The products available at these retail stores will come from a cultivation facility in Ocala that the company says will be operational by the end of this year.

Green Thumb has been operating in the Florida market since 2018 and currently owns and operates seven medical cannabis retail stores, according to the most recent Office of Medical Marijuana Use update.

More than 700,000 Floridians currently are registered active cardholders in the state’s medical marijuana program, according to the Florida Department of Health.

Stocks of GTBIF rose around 3% on the news as of press time.

The post Circle K Owner Doubles Down on Cannabis Bet in Florida appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife