The Daily Hit is a recap of the top financial news stories for Jan. 2, 2024.
On the Site
New York Makes Two MSOs Wait for Recreational Market Entry
During a chaotic meeting on Friday, New York marijuana regulators told two multistate operators – Fiorello Pharmaceuticals Inc., which is owned by Green Thumb Industries, and Citiva Medical LLC, which is owned by iAnthus Capital Holdings Inc. – that they’ll have to wait at least a few more weeks to join the state’s recreational cannabis market. Read more here.
New York’s Legal Marijuana Sales Hit $150 Million in First Year
More than 6,900 businesses have filed applications to sell cannabis products since the state opened its first legal dispensary in December 2022. But to date, just 40 dispensaries have been approved to sell adult-use products, the data shows. The state’s 40 legal dispensaries sold 3.5 million units of cannabis within the last year. Read more here.
Trulieve Closes $25 Million Financing Deal
Florida-based Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced last week that it secured a new commercial loan of $25 million at 8.31% interest for five years. Funds from the deal will be used to help the company pay for ongoing operations. Read more here.
Nevada Eases Cannabis Licensing Red Tape
A slew of changes to the Nevada cannabis industry, from possession limits to potency and licensing, went into effect Monday. Under the new rules, the result of a bill signed into law last June, dispensaries serving both recreational and medicinal cannabis will require only a single license, instead of separate licenses for each side of the market. Read more here.
Shiny Health & Wellness Faces Revenue Slide, Rising Net Loss
Toronto-based cannabis operator Shiny Health & Wellness Corp. (TSXV: SNYB) experienced a notable dip in revenue and a rise in net loss, according to its financial statements for the third quarter ending Oct. 31, 2023. The company’s revenue fell 42.7% in the three-month period, to C$4.28 million, compared to the same period last year. Read more here.
In Other News
22nd Century Group
22nd Century Group, Inc. (NASDAQ: XXII) closed the sale of its hemp/cannabis operations. The transaction will significantly reduce the company’s operating costs going forward, a key step in its goal to achieve cash positive operations. Read more here.
FP Omni Technologies
FP Omni Technologies, Inc. (fpomnitech.com) has made the decision to wind down its operations. The decision arose out of the company’s inability to continue with the payment processing services promised to FP Omni by TSYS Acquiring Solutions LLC. Read more here.
Alabama
Montgomery County Circuit Judge James Anderson on Thursday night issued a temporary restraining order to stop the Alabama Medical Cannabis Commission from issuing licenses to companies that will dispense medical cannabis. Anderson’s order putting a hold on the issuance of licenses applied only to the dispensary category. The commission was also scheduled to issue licenses for cultivators, processors, transporters, and testing labs. Read more here.
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