Daily Success: July 11, 2022
The Daily Hit is a roundup of the top cannabis business stories for July 11, 2022.
ON THE SITE
THC Designs sued by ex-CFO over alleged request to Doctor Financials
William McKenna, the former CFO of Los Angeles-based cannabis company THC Designs, filed a lawsuit against the company on July 6, 2022. McKenna claims he was fired for refusing to defraud investors and the tax authorities asked the owner of the company, Ryan Jennemann, to take care of the finances. He claims he was asked to reduce liabilities so the company could borrow more money. McKenna also believes the company was growing and selling psilocybin mushrooms for money and not recording those sales. Learn more here.
MediPharm sells Australian assets to OneLife Botanicals
MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) is selling its MediPharm Labs Australia Pty Ltd to OneLife Botanicals PTY in a transaction valued at A$6.9 million (C$6.2 million). The transaction is expected to close within 90 days. The agreement includes MPLA assets, specialist licenses, operational knowledge and Australian and New Zealand customers currently served from this facility. All international contracts outside of Australia and New Zealand will remain with MediPharm Labs and will be processed from the Barrie GMP facility. Learn more here.
Canadians prefer to pay higher prices for flowers
It seems that Canadian cannabis consumers prefer to pay higher prices for flowers. A new report from Cantor Fitzgerald analyst Pablo Zuanic has found that most Canadian licensed producers (LPs) have increased their market share with higher flower prices. The only exception to the rule was Organigram (NASDAQ: OGI), which saw its market jump dramatically after falling by almost half. Learn more here.
Neptune Wellness revenue plummets as company ditches cannabis
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced its financial results for the fourth quarter and full year ending March 31, 2022. Revenue for the fiscal fourth quarter totaled $11.5 million , a 147% increase from $4.7. million for the same period the previous year. However, that was a sharp drop from the company’s third-quarter revenue of $18 million. Neptune also reduced its fourth quarter net loss to $36.2 million from a net loss of $43.5 million for the same quarter in 2021. Read more here.
New York sends more cease and desist letters
As the New York Cannabis Program moves at a snail’s pace to establish the Adult Cannabis Program, many illicit operations have sprung up. With no real laws in place, technically most of these operators feel that they cannot be accused of breaking the law. The law does not exist. Additionally, with cannabis being mostly decriminalized in the state, possession has also lost its threat. This has created a conflict between legal medical cannabis operators who have spent millions building law-abiding businesses and illicit operators. Moreover, many are now investing even more money to try to become legal operators, but watch the current illicit operators operate with impunity. Learn more here.
New Lake acquires more properties
Cannabis REIT NewLake Capital Partners, Inc. (OTCQX: NLCP) announced investments of $50 million in three properties, marking the full commitment of capital raised in the company’s initial public offering (IPO). NewLake acquired two properties from a major publicly traded US multi-state cannabis operator and amended its existing lease with another publicly traded US MSO to fund an already completed expansion. As of June 30, 2022, NewLake had approximately $28.7 million in unfunded commitments. Learn more here.
The psychedelics market is growing despite many unknowns
The revival of psychedelics is in expanded growth mode, not only in the United States and Canada, but also in other countries. But all over the world, it’s a bit of a Dr Jekyll/Mr. Hyde Scenario: Start-ups ostensibly building a serious, lucrative business in a fledgling industry, while experimenting in labs with new brain chemicals that could change the world of mental health wellness forever…if all goes well as expected. Learn more here.
IN OTHER NEWS
TILT Holdings Inc., Shinnecock Indian Nation
TILT Holdings Inc. (NEO: TILT) (OTCQX: TLLTF), a global provider of cannabis-related business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development, and nation Shinnecock Indian, a federally recognized Native American tribe living on their traditional lands on the east end of Long Island, NY, began construction today on Little Beach Harvest, a 5,000 square foot cannabis dispensary located on the Shinnecock Tribal Territory in Southampton, NY Learn more here.
Flora Growth Corp.
Flora Growth Corp. (NASDAQ: FLGC), a cultivator, manufacturer and marketer of global cannabis products and brands, today announced the appointment of Elshad Garayev as Chief Financial Officer of Flora, effective one business day following the date on which the company files its mid-year financial results with the Securities and Exchange Commission. Until then, Mr. Garayev will serve as Vice President of Finance and will work closely with Lee Leiderman, Flora’s current CFO, to ensure a smooth transition. Mr. Leiderman will then take on a role as an advisor to Flora to focus on her health and her family. Learn more here.
Clever Leaves Holdings Inc.
Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW), a multinational operator and licensed producer of pharmaceutical-grade cannabinoids, today announced the continued expansion of the company’s partnership with European medical cannabis leader Cantourage GmbH to include the supply of Clever Leaves’ second pharmaceutical product produced from premium cannabis, grown at the company’s Portuguese facilities, to the German medicinal cannabis market. Learn more here.
Cannabotech (CNTC.TA), an Israeli bio-medical company that is engaged in the development of a botanical drug based on the fungal extract of Cyathus striatus and cannabinoid extracts from the cannabis plant, reports that following a experiment in a cell model in April 2022, which proved that the mushroom-cannabinoid combination kills pancreatic cancer cells with a high efficiency of up to 100%. Learn more here.