Jenel Stelton-Holtmeier
We’ve said it before, and we’ll say it again: The cannabis industry is never boring. Over the past 12 months, Green Market Report brought you stories from across the country and around the globe.
But some stories resonated with our audience more than others. Here are the five most popular stories on our site, based on your views.
1. 10 Multistate Cannabis Companies Owe Half a Billion in Federal Taxes
In September, GMR’s Senior Reporter John Schroyer analyzed financial filings of 10 of the largest publicly traded companies operating in the U.S. What he found was that those 10 companies were carrying a combined total of more than $500 million in unpaid taxes to the Internal Revenue Service.
While some of this debt can be attributed to the way the IRS schedules its due dates, there often is another factor at play: the need for cash.
Check out Schroyer’s analysis here.
2. High Times Owes ExWorks $28.8 Million
High Times Holding Corp. filed an update with the Securities & Exchange Commission in October, noting that “All of our obligations to ExWorks are currently in default.” That debt is for nearly $30 million, taken in 2017 to acquire Trans-High Corporation (THC), which was the original corporate name for the magazine.
With ExWorks calling in their debt, High Times was scrambling to obtain funding to right the ship.
Check out Executive Editor Debra Borchardt’s breakdown here.
3. California Cannabis Debt Bubble on Verge of Bursting
A slow but steady years-long trend of licensed marijuana companies in California not paying all of their bills might be nearing its climax, industry insiders warned, and a wave of business failures is on the way if the debt bubble explodes.
The amount of overall debt carried by legal operators is hard to pin down, but one industry leader pegged it at more than $600 million.
Read more here.
4. Dutchie Founders Sue the Company for Orchestrating a Coup
The founders of e-commerce cannabis company Dutchie sued the current leaders and accusing them of orchestrating a coup. Dutchie was founded in 2017 by brothers Ross and Zachary Lipson and was originally called Courier Plus Inc. The two say they were improperly kicked out of the company by the current board and are insisting they are still directors and officers of the company.
Read more here.
5. Green Organic Dutchman Merges With BZAM
While bad news often dominates our collective attention span, good news sometimes breaks through as well, as is the case with our fifth-most read story of 2022.
In October, the share price of The Green Organic Dutchman (OTC: TGODF) popped on the news that it bought privately owned Canadian-based BZAM Holdings (BZAM) in an all-stock deal. BZAM shareholders will end up holding roughly 49.5% of the combined company. Shares jumped by 30% to sell at roughly six and half cents.
The combined company is estimated to be the sixth-largest Canadian cannabis company based on June to August 2022 retail sales. Together, the combined company forecasts net revenue of at least $100 million for the calendar year 2023 and adjusted EBITDA positive by mid-2023.
Read more about the deal here.
