Staff
It’s time for your Daily Hit of cannabis financial news for December 9, 2021.
On The Site
Fire & Flower
Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) is buying Pineapple Express Delivery Inc., Canada’s largest delivery and logistics company serving the cannabis sector in a deal valued at $5.3 million. The transaction is expected to close in the first quarter of 2022. Pineapple Express said that its revenue for the trailing 12-month period ending October 31, 2021 was approximately $10 million.
Geoff Thompson
It may have taken a while but former Doyen Elements CEO Geoffrey Thompson was charged last week in federal court in Chicago for ripping off cannabis investors to the tune of $950,000. Thompson was charged with one count of wire fraud and the arraignment is set for Dec. 9, 2021, at 11:30 a.m., before U.S. District Judge John F. Kness. Wire fraud is punishable by up to 20 years in federal prison. According to a notice from the Department of Justice, the charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Matthew Getter.
New Jersey
The New Jersey Cannabis Regulatory Commission has finally approved 14 of the 2019 medicinal cannabis business applications that had been previously held up due to a court-ordered stay of the review process. The commission said that ten applications for cultivation permits and four applications for vertically integrated permits were approved and can begin preparations to serve New Jersey’s medicinal cannabis patients. The group also said that because of increasing patient need, five more cultivation permits were awarded than had been planned in 2019. On December 15, the state will begin to accept applications for adult-use cannabis business licenses.
FundCanna
Financial services industry veteran, Adam Stettner has launched a new lending company, FundCanna to provide financing for growers, manufacturers, retailers, and all participants in the cannabis supply chain. The company said it raised $30 million but could tap even more through its principals, investors and partners, including an extensive nationwide network built over the last 20+ years of financing American Small Businesses.
Holiday edibles
Do you dream about your favorite holiday cakes, cookies, candies weeks before the holiday begins? If so, you’re not alone. This is according to a survey of 2,000 Americans, who on average, began thinking about holiday treats three whole weeks ahead of the occasion. Even if you don’t celebrate the holidays, closing the year with decadent desserts in hand is the way to go. Jushi Holdings’ (CSE:JUSH) recent poll found 9 out of 10 consumers, 91% of respondents, living in a legal state plan to incorporate cannabis into their holiday festivities this year. Cannabis brands know this. That’s why more and more holiday-themed, cannabis-infused edibles are entering the marketplace each year.
In Other News
iAnthus
iAnthus Capital Holdings, Inc. provided an update with respect to the company’s previously announced recapitalization transaction. On November 4, 2021, iAnthus announced that the Florida Department of Health, Office of Medical Marijuana Use approved the variance request pursuant to Section 381.986(8)(e) of the Florida Statutes filed by the Company’s subsidiary, McCrory’s Sunny Hill Nursery, LLC d/b/a GrowHealthy to approve the prospective change of beneficial ownership of McCrory’s contemplated by the Recapitalization Transaction. On December 6, 2021, the Florida Department of Health issued to the petitioners an “order to show cause” with respect to why the Petition meets the criteria set forth in Rule 28-106.201 and Rule 28-106.301 of the Florida Administrative Code. The petitioners have been ordered to either respond or amend the Petition by December 17, 2021.
As disclosed in the company’s news release dated November 4, 2021, regulatory approvals in Massachusetts, New York, and Maryland necessary to close the Recapitalization Transaction were outstanding. As a result of the filing of the Petition, regulatory approval in Florida remains outstanding until there is a final resolution of the Petition and a final agency order is issued by the OMMU pursuant to the Florida Rules.
Jushi
Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) opened its 27th nationwide dispensary, 17th BEYOND / HELLO™ dispensary in Pennsylvania, and a third store in the Greater Pittsburgh Region through its subsidiary, Franklin Bioscience – SW LLC. BEYOND / HELLO™ Pittsburgh will begin serving Pennsylvania medical marijuana patients and caregivers on Wednesday, December 15, 2021, at 10:00 a.m., providing an unparalleled in-store experience, convenient online reservations available through beyond-hello.com, and in-store express pickup.
