Lp,s are doomed!
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How did Canada end up with a whopping 1.4 billion grams of (mostly) unneeded cannabis inventory?
At the peak of the cannabis stonk frenzy, cannabis accounted for 11% of Canada's total greenhouse space.
As of today, that's fallen to 7.6%.
#cannabisindustry #cdnbiz
Lps have nowhere to go but down in flames…
What about 4 days in a row?
5 days and you become a millionaire??
Is that how stock market works?
That is why folks love the Legacy model
But do not take my words for it.
Today’s legacy deals
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shares to canna naive suckers.
Mikalsen v Norway: Moving a Nation Forward
By Cannabis Culture Magazine on June 2, 2023
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CANNABIS CULTURE – New documentary focuses in on one man’s fight to end cannabis prohibition!
On the 7th of September, Life Liberty productions will release a three-part documentary that covers the problems with the drug policy and human rights. In this series, the connection to the arbitrary persecution of the past is explained and a historic judgement of the European Court presented. Watch the trailer here!
Worldwide, the drug prohibition is increasingly seen as one of the main challenges to establish a new relation between the state and the people. Contrary to today’s persecution and bondage, constitutional principles must be embraced, but some countries refuse to accept international guidelines.
Norway is one of these nations. While Germany, Malta, Luxembourg, and other states are leaving the prohibition behind to better protect human rights, the Scandinavian countries maintain a shared fondness for authoritarian drug policies. For 20 years, the Norwegian state has failed to honour basic human rights commitments and the European Court has been asked to ensure that modern drug policy fulfils a legitimate purpose.
To the extent that a regulated cannabis market is better suited to protect public health, the prohibition will represent an unduly invasive practice, and this series follows Norwegian activists on a quest for justice.
By the end of September, the judgement of the Court shall be presented. Will it be the dawning of a new age for drug policy on the European continent?
This trailer surely raises expectations.
CANNABIS Trulieve winds down Massachusetts operations, closes California shop
Trulieve is closing the Grover Beach retail outlet following closure of the Palm Springs and Venice locations in 2022
ByRowan Dunne
Trulieve closes California location and winds down Massachusetts operations Trulieve's last California dispensary, affiliated with Harvest. Photo via Trulieve Cannabis
The United States cannabis distributor Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) plans to wind down its operations in Massachusetts and is closing its Grover Beach retail outlet in California.
The company announced the moves on Thursday which are part of a financial optimization plan.
Trulieve’s Massachusetts dispensaries in Worcester, Framingham and Northampton will be shutting down on June 30 and the company expects to conclude it operations in the state by the end of this year.
“These difficult but necessary measures are part of ongoing efforts to bolster business resilience and our commitment to cash preservation as we continue to focus on our business strategy of going deep in our core markets and jettisoning non-contributive assets,” said Trulieve’s CEO Kim Rivers.
Read more: Organigram invests $8M in Phylos Bioscience to commercialize THCV products
Read more: CBG market to be worth US$52.5B more by 2033: Fact.MR
Trulieve now only has one remaining California dispensary located in Napa. The news follows the company’s decision to shut down its Palm Springs and Venice dispensaries in the Golden State last year and its exit from the Nevada wholesale market.
The cannabis operator also announced Thursday that the Smart & Safe Florida campaign primarily funded by Trulieve has obtained 965,000 signatures, a number verified by the Secretary of State. The initiative aims to bring adult-use cannabis to Florida and the current amount of signatures is more than sufficient to secure ballot placement for next year’s general election.
The next step for the campaign will be to gain approval from the Florida Supreme Court and State Constitution.
Trulieve will be opening a series of medical cannabis dispensaries in Ohio this year at an unspecified date, beginning with a location in Columbus.
The company also plans to open three Georgia dispensaries and two Arizona locations in the near future.
Trulieve’s shares took a sharp decline in December last year, dropping by $9.37. Since that time they have been on a slower but steady decline and are currently trading for $5.47 on the Canadian Securities Exchange.
CANNABIS Edibles are unpopular in Canada because of low THC regulations: Headset
The firm looked into the popularity of edibles in Canada and the United States
ByNatalia Buendia CalvilloPublishedMay 23, 2023
Cannabis users prefer higher THC limits in edibles3 Photo via OCS.
Edibles are one of the least popular cannabis products in Canada because of the tight regulation around THC limits per package, according to a new analysis by the cannabis market analytics firm Headset.
The firm published an analysis last week looking into the popularity of edibles in Canada and the United States as well as trends between sales, prices and concentrations among edibles.
The setting of THC limits for edibles has been a subject of debate among government regulators and industry players lately. Health Canada has recently directed five licensed cannabis companies to halt the sale of specific ingestible marijuana products that were categorized as “ingestible extracts” rather than edibles and had been approved by provincial boards.
“Based on the data presented, there is a clear indication of consumer demand for edibles with higher total package potency in Canada,” reads a blog post by Headset analysts.
“If high total package potency is restricted from the Canadian market, it may result in a negative impact on the Edible category overall, leading to reduced consumer spending and financial losses for producers.”
“It remains to be seen how regulators will respond and the consequences it will have on the market,” said the analysts in the report.
Cannabis users prefer higher THC limits in ediblesusvscanada
Graph via Headset.
In Canada, edibles are subject to a maximum THC limit of 10 milligrams per package, whereas concentrates or “extracts” can contain a much higher amount of THC per package.
Certain producers of edibles in Canada have managed to circumvent THC restrictions by categorizing their products as “ingestible extracts.” At present, there are only a small number of brands that offer these types of products.
Three of the top ten edible brands –Aurora Drift, Indiva, and Edison Cannabis Co.– have product lines that employ this alternative method of producing edibles. Specifically, the leading three products from each of these companies are designated as ingestible extracts and contain more than 10 milligram per package.
Read more: Canadians’ edibles excitement dips as legal weed support soars, report shows
Read more: Men and younger generations consume the most cannabis: Headset report
Cannabis users prefer higher THC limits in edibles3
EQ Price is a metric that measures the price per milligram of THC. Graph via Headset.
In the cannabis industry, users have demonstrated a notable inclination towards value, much like high-dose beverages. EQ Price is a metric used to evaluate this value, measuring the price per milligram of THC.
In the autumn of 2022, with the introduction of extract-based product lines, prices experienced a significant decline, leading to an increase in value that has proven to be exceedingly attractive to cannabis users. This decrease in price has served to boost sales by offering customers more reasonably priced alternatives.
Cannabis users prefer higher THC limits in edibles
Edible producers have been able to bypass THC limitations by classifying their products as “ingestible extracts.” Table via Headset.
When comparing the top three extract products from Indiva, Aurora Drift, and Edison Cannabis Co. to the rest of the Canadian edibles market, these nine products collectively represented 17.7 per cent of all edible sales between January and April 2023.
For each of these three companies, their top three products on average make up 41.9 per cent of their total sales across all categories.
The report includes data from Arizona, California, Colorado, Florida, Illinois, Massachusetts, Maryland, Michigan, Nevada, Oregon and Washington. It also includes data from the provinces of Alberta, British Columbia, Ontario and Saskatchewan.
Mugglehead Magazine
CANNABIS Avextra imports medical cannabis extracts to Italy
Italy has the second largest patient population for medical cannabis in the European Union
ByRowan DunnePublishedMay 17, 2023
Avextra imports medical cannabis extract to Italy Image via Avextra
Germany’s Avextra AG, a medical cannabis company partly owned by Seed Innovations Ltd (LON: SEED), has expanded its European footprint by shipping EU-GMP certified cannabis extracts to Italy.
Avextra announced the accomplishment on Wednesday and says it is one of only three companies permitted to import medical cannabis products into the country.
The company also says that Italy has the second largest patient population for medical cannabis products in the European Union and that 70 per cent of that market is allocated to extracts like the ones Avextra has now imported.
“We have had extensive discussions with Italian doctors and pharmacies and see a clear need for standardized extracts in Italy,” said Avextra’s Co-CEO Bernhard Babel.
“Our Italian team have regularly participated in scientific conferences and built relationships with leading researchers and clinicians and see strong potential for medical cannabis therapies to grow and develop in Italy.”
Read more: Clever Leaves gets Brazilian GMP cannabis certification
Read more: Switzerland approves more adult-use cannabis pilot projects
Avextra announced on Monday that it had raised £17 million to help expand its business from a series of private investors.
In February, the company began exporting its extracts into the United Kingdom where it currently holds an ownership stake in a series of medical cannabis dispensaries owned by Integro Medical Clinics.
Avextra owns a substantial cannabis cultivation facility in Portugal in addition to the German facility where the extracts were produced. The company was formerly known as the Eurox Group before rebranding itself as Avextra last fall.
Seed says that as of September 30 last year it owned a 6.6 per cent stake in Avextra on a fully diluted basis valued at approximately £4.4 million.
Seed’s shares are currently worth the equivalent of $0.03 on the London Stock Exchange, dropping by 0.79 per cent Wednesday.
Mugglehead Magazine
CANNABIS Curaleaf Holdings reports Q1 results, net loss lowers by 378%
The company increased its revenue by 14 per cent YoY to US$336.5 million
ByRowan DunnePublishedMay 18, 2023
Curaleaf Holdings reports Q1 results, decreases net losses by 378% Image via Curaleaf
The international cannabis distributor Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) saw a 14 per cent YoY net revenue increase and decreased its net losses by nearly 400 per cent from the previous quarter during Q1 this year.
On Wednesday, the company announced its financial results for the quarter ending March 31. Curaleaf attributes the substantial decrease in net losses last quarter to a reduced gross margin rate stemming from price compression.
Curaleaf generated net revenue of US$336.5 million with a gross profit of US$160.8 million during the quarter. The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 5 per cent from the previous quarter to US$73.2 million, accounting for 22 per cent of the company’s revenue.
The company had a cash position of US$115.8 million at the end of Q1, representing a 91.7 per cent decrease YoY from the US$242.6 million it had at the end of Q1, 2022. Curaleaf had US$593.8 million in outstanding debt at the end of the quarter.
Curaleaf’s retail revenue for Q1 totalled US$273 million, a 21 per cent increase YoY from the US$225.1 million generated in the first quarter of 2022. That amount represents 81 per cent of Curaleaf’s total revenue during the quarter and the company says this can be attributed to the 28 new stores Curaleaf added to its portfolio throughout last year.
Read more: Curaleaf sees 14% increase in revenue to $1.34B in 2022
Read more: Curaleaf Holdings acquires medical cannabis firm Deseret Wellness for US$20M
Curaleaf closed and opened operations in Q1
Operational highlights from the first quarter included closing operations in Oregon, California and Colorado as a cost saving initiative; opening three new dispensaries in Florida for a total of 58 throughout the state; starting adult use sales at two locations in Connecticut and launching the JAMS edible brand in Arizona and Florida.
Following the end of Q1 this year, Curaleaf acquired Utah’s Deseret Wellness for US$20 million, opened an additional two stores in Florida, sold 77 per cent more cannabis on April 20 than last year on the highest grossing day in New Jersey to date and launched a new mobile app and loyalty program that now has about 1.9 million members.
“We continue to optimize our United States assets for responsible growth and are very excited about the investments we are making internationally, setting the stage for robust growth in ’24, ’25, and ’26 as cannabis adoption accelerates across Europe,” said Curaleaf’s Executive Chairman Boris Jordan.
“We are laser focused on operating efficiencies in every aspect of our business both in the U.S. and Europe, establishing a lean asset base from which we will drive margin improvements, operating leverage and cash generation,” said Matt Darin, CEO of Curaleaf.
A report released on Friday by Fortune Business Insights indicated that the global cannabis market would be worth US$197.74 billion by 2028, having a previous value of only US$28.2 billion in 2021. Increasing consumer awareness regarding the plant and rising rates of legalization globally are key factors propelling the market’s growth.
Curaleaf’s shares rose by 4.86 per cent Thursday to $3.88 on the Canadian Securities Exchange.
Mugglehead Magazine
CANNABIS Organigram enters Germany’s medical cannabis market
The company will be supplying Germany’s Sanity Group with high-grade medical cannabis flower
ByRowan DunnePublishedMay 23, 2023
Organigram enters Germany's medical cannabis market Cobra Milk cannabis flower in the drying room. Photo via Organigram Holdings
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) has added Germany to its list of international markets after securing a new supply agreement with Berlin’s Sanity Group.
The Canadian cannabis company announced the milestone on Tuesday and will be providing high-grade cannabis flower to the German company’s medical division.
The flower being shipped by Organigram was grown at its flagship indoor cultivation facility in Moncton, New Brunswick. Organigram will also be granting Sanity Group strain exclusivity rights on certain genetics it has developed.
“With the German cannabis industry slowly moving toward a recreational adult-use model, we are excited to begin solidifying our relationships with reputable medical cannabis product developers and distributors like Sanity Group,” said Oranigram’s CEO Beena Goldenberg.
“We look forward to bringing Organigram’s high-quality indoor-grown flower to our German medical patients,” said Finn Age Hänsel, Founder and Managing Director of Sanity Group.
Read more: BZAM to sell medical cannabis in U.K via pot distributor 4C LABS
Read more: Avextra imports medical cannabis extracts to Italy
At the end of March, Organigram invested US$4 million in Weekend Holdings Corp and its vaporizer subsidiary Greentank Technologies.
Last fall, Sanity Group completed a US$37.6 million funding round led by British American Tobacco (LON: BATS), receiving funding from investment firms such as Casa Verde Capital and Redalpine.
Sanity Group says it was Europe’s largest-ever cannabis investment round and that it was able to accelerate the growth of its medical and consumer business units with the funds.
British Columbia’s Village Farms International, Inc. (NASDAQ: VFF) also started shipping its Pure Sunfarms cannabis to Germany’s IUVO Therapeutics GmbH at the beginning of May.
In 2022, the German medical cannabis market was estimated to be valued at approximately €200 million, one of the largest in Europe. Germany announced plans to legalize adult-use cannabis last fall but is yet to offer a timeline for the legislation coming into effect.
Organigram’s shares stayed flat at $0.66 Tuesday on the Toronto Stock Exchange.
CANNABIS Clever Leaves sends first cannabis shipment to Portugal
The company received its fifth GMP certification from the European Union, Colombia and Brazil
ByNatalia Buendia CalvilloPublishedMay 25, 2023
Clever Leaves sends first cannabis shipment to Portugal Photo via Clever Leaves.
Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW) is set to send its Colombia-grown and extracted cannabis concentrates to Portugal for the next five years.
The Canadian company with primary operations in Colombia announced the first shipment on Thursday where Clever Leaves will supply EU-GMP-certified CBD extracts from Colombia to the biopharmaceutical SOMAÍ Pharmaceuticals.
Clever Leaves has already completed the initial shipments under the agreement and will continue to supply pharmaceutical-grade APIs and CBD extracts to SOMAÍ for further processing into finished products for patients throughout Europe.
SOMAÍ aims to become a leading player in Europe’s medical cannabis market by creating new dosage forms that go beyond conventional drug delivery systems and ensure consistent quantities of active ingredients are delivered to patients.
These recent shipments mark the first time that Clever Leaves has sent products to Portugal, and it adds to the company’s track record of exporting to over 15 countries from its EU-GMP certified facility in Colombia. The company has also received its fifth GMP certification from the European Union, Colombia and Brazil.
“By combining our expertise in producing and developing high-quality pharmaceutical-grade products with SOMAÍ’s innovative approach to drug delivery systems, we aim to streamline patient access to pharmaceutical-grade cannabis products throughout Europe,” Clever Leaves CEO Andres Fajardo said.
“This collaboration signifies Clever Leaves’ commitment to shaping the future of the global medical cannabis industry and grows our position in Europe’s rapidly expanding medical cannabis market.”
Read more: Clever Leaves gets Brazilian GMP cannabis certification
Read more: Clever Leaves to sell its products in Peru via partnership with Anden Naturals
SOMAÍ Pharmaceuticals is a major producer of cannabis products that focuses on creating high-quality medical-grade pharmacological applications. The company invests in all aspects of the cannabis product development process, including extraction, research, development, formulation, and distribution of EU GMP-pharmaceutical market-authorized cannabinoid products.
“SOMAÍ Pharmaceuticals embarked on an extensive quest to seek a formidable partner to launch one of the most comprehensive cannabis product lines for the flourishing European markets,” SOMAI CEO Michael Sessano said.
We are proud to be working with the highly professional Clever Leaves team and are most impressed with the high-quality EU-GMP CBD extract,” he added.
CANNABIS Tilray expands portfolio in Italy, partners with cancer researchers
The company will be supporting the cancer and patient care conference ONCOWELLNESS
ByNatalia Buendia CalvilloPublishedMay 25, 2023
Tilray partners with Italian cancer researchers, launches 3 new medical cannabis products Photo via Tilray
Leading Canadian cannabis producer Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY) has received authorization from Italy’s Ministry of Health to distribute three new medical cannabis compounds in the country.
The company also announced Thursday it will be collaborating with Italian oncology researchers and supporting a cancer conference taking place this year.
The authorized medical cannabis compounds will be supplied by Tilray Medical to FL Group, its subsidiary, which will distribute them to pharmacies across Italy.
In addition to the authorization, Tilray also announced a new strategic partnership with Pharmaidea, a Petrone Group company. The partnership will focus on marketing and educating over 12,000 pharmacies across Italy on the benefits of medical cannabis and medical cannabis patient care.
Tilray Medical has an established broad national pharmaceutical distribution network in Italy, where medical cannabis is reimbursed by the healthcare system to eligible patients. Medical doctors in Italy can prescribe Tilray-supplied medical cannabis extracts at different concentrations throughout the country.
“We are extremely humbled by the trust that patients, health care providers and governments have placed in us and our medical cannabis products and take our responsibility very seriously,” Tilray CSO Denise Faltischek said in a statement.
“Our Tilray Medical team remains dedicated to patient advocacy and education across our international markets while providing quality, consistent medicinal cannabis for commercial, compassionate access, and research purposes.”
Read more: Tilray’s Solei brand launches cannabinoid-infused tea line
Read more: Tilray reports $1.1B in losses during Q3 2023, acquires Hexo for $75M
Tilray partners with cancer research community
The company also announced it will be collaborating with the oncology and patient care research community in Italy by supporting the cancer and patient care conference ONCOWELLNESS.
This conference is accredited by Italy’s Ministry of Health and is led by Dr. Vittorio A. Guardamagna, National Coordinator and Director of SC Pain Therapy and Palliative Care at the European Institute of Oncology (IEO) Milan.
It brings together top healthcare practitioners from various fields, including orthopedics, geriatrics, anesthesia, intensive care and psychiatry among other specialties.
Participants at the conference will have the opportunity to share their experiences in daily practice, discuss integrated and multidisciplinary therapeutic strategies, and deepen their understanding of clinical trial results and the introduction of therapy preparations based on medical cannabis.
The ONCOWELLNESS conference is scheduled to take place on May 27, 2023, in Milan on Sept. 9, 2023, at the Careggi Hospital in Florence, and on November 18, 2023, at the University Hospital UNIBA in Bari.
At its peak in early 2021, Canopy’s market value topped $25-billion. With its close at $1.14 per share Friday, the company is worth about $600-million.
Doomed!
www.headz.cc vs www.crappy.growth.com
Easy consumer choice.
Forget about covid and other silly excuse…
lps are doomed but John is not aware of it just yet.
Legacy = great working free market .
60 years providing Canadians with fire.
LPs = stock market moribond Ponzi.
Terrible at selling bunk weed.
Better at selling shares to suckers and bag holders but.
They are confident out-to-lunchers.
DD is not important for these happy hope-full gamblers.
??
News
Law firm fishing for Canopy Growth whistleblowers
Published on June 2, 2023 by oz. staff
Workers pack cannabis inside Canopy Growth.
A law firm is fishing for whistleblowers in a class action lawsuit it’s filed against Canopy Growth—dangling a possible monetary reward.
The potential securities fraud suit filed by US-firm Berger Montague stems from an error with Canopy Growth’s financial statements—specifically “material misstatements” about BioSteel Sports Nutrition’s sales.
Following that news in May, Canopy’s stock sunk 14.8% on May 11, 2023, closing at $1.04 per share on heavy trading volume, says the firm.
The suit has not yet been judicially approved.
Now looking for inside info
Berger Montague says there’s potential to get paid for tips by the Securities and Exchange Commission.
“Anyone with non-public information regarding Canopy is encouraged to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program,” says the news release.
“Under this program, whistleblowers who provide original information may receive rewards totalling up to 30% of recoveries obtained by the SEC.”
There is no dollar estimate provided in the release.
Those who purchased Canopy securities between May 31, 2022, and May 10, 2023 are eligible to jump in. The deadline to inquire is July 24. More info at the firm’s website.
Canopy’s cannabis brands include Tweed, Doja, Ace Valley, 7Acres, Hi Way, Deep Space, Spectrum Therapeutics, Martha Stewart CBD, as well as Storz & Bickel.
THE CANADIAN PRESS/ Tijana Martin
OCS CEO OUT TO LUNCH
Avatar photoCALEB MCMILLAN·JUNE 2, 2023
ALL ABOUT CANNABIS BUSINESS
The Ontario Cannabis Store‘s (OCS) CEO is out to lunch.
It’s a common theme in Canada lately. A new poll shows a vast majority of Canadians are concerned with Chinese interference in our elections.
So what does the government of the day do? They hire a family friend – former Governor General David Johnston – with connections to China and the Trudeau Foundation. He “investigated” the interference and found nothing.
Parliament was obviously unhappy with this result, no doubt stemming from Johnston’s conflict of interest. So the House of Commons voted in a clear majority to have Johnston step down as a “special rapporteur” and open a public inquiry.
But Johnston refuses to step down. He says his mandate is from “the government,” not Parliament. In other words, he’s out to lunch. Parliament is the government. Canada is built on the Westminster system, which recognizes parliamentary supremacy.
“The government” is not the ruling party. You would think a former Governor General would know this.
Likewise, the only person who can end Trudeau’s Chinese tyranny is the leader of the NDP, who holds the balance of power. He said Johnston is “tone-deaf” for not listening to Parliament. But this Rolex-wearing BMV-driving “hero” of the working class is also out to lunch.
I only bring this up because it helps contextualize what the OCS CEO told an audience at Toronto’s Lift conference this past week. This entire country is out to lunch.
OCS CEO OUT TO LUNCH
OCS CEO Out to Lunch
On the surface, David Lobo, Ontario Cannabis Store president and chief executive (OCS CEO), said nothing controversial.
He said a “race to the bottom” was happening with cannabis prices that may hurt the cannabis industry‘s future.
“Once you condition consumers to certain prices, it may take a generation to change perceptions and price tolerances,” he said. “In an economy where inflation has impacted every other consumer good, we can’t keep pushing lower.”
Of course, this “race to the bottom” didn’t begin at baseline. In anticipation of legal cannabis, investors poured in with millions. Companies like Aurora saw their stock expand and inflate beyond fundamentals.
Many of us saw this coming. A correction was inevitable. Only the people who believed this hyped-up market was real are experiencing the shock.
We’ve covered the covid-inspired cannabis bubble before. Since people are no longer under house arrest and getting blasted with ‘end-of-the-world’ propaganda every second, their frequency of cannabis consumption has slowed.
But what the OCS CEO is driving at is something more fundamental. “We are no longer in the early days of legalization anymore. That dank new car smell of legal cannabis has worn off,” he said.
But even here, there are other factors to consider.
Take cell phones. The first ones were the size of bricks and came with a hefty price tag. Over time, as competition increased, manufacturing processes became more efficient, technology improved, and prices dropped.
The price of cell phones (or any electronic) from the last forty years appears to be a “race to the bottom.” But in reality, this is how markets are supposed to work.
A RACE TO THE BOTTOM?
OCS CEO Out to Lunch
The OCS CEO is adamant that they are doing their part to fight this “race to the bottom.”
But the OCS has a monopoly on cannabis distribution. Producers do not deal directly with stores. They have to go through the government’s OCS bureaucracy first.
Does the OCS CEO not see the connection?
The OCS has the power to manipulate prices and drive competition out of the market. The OCS admits that offering lower margins to producers will allow these companies to pass savings to consumers, thus lowering prices.
Likewise, disconnected from competitive pricing, the OCS arbitrarily sets its margins. Are they putting people out of business or discouraging new products? How extensively have they manipulated the market?
FORTUNATELY, WE CAN COMPARE ONTARIO TO SASKATCHEWAN.
Cannabis retailers in Saskatchewan purchase their inventory directly from producers. The Saskatchewan Liquor and Gaming Authority (SLGA) acts as the regulator for cannabis in the province. But it does not operate as a monopoly distributor.
Saskatchewan’s official reason for this is:
Protecting public health and safety, including keeping cannabis away from children and youth;
Eliminating the illegal market;
Minimizing taxpayer exposure to risk; and
Incorporating regulatory best practices and building on experiences from other jurisdictions.
The Saskatchewan government listened to feedback and concluded that the above goals “are best served by a competitive private model for the wholesale/distribution and retail sale of non-medicinal cannabis in Saskatchewan.”
Additionally, “This model minimizes the upfront cost to taxpayers.”
Meanwhile, Saskatchewan has some of the lowest rates of cannabis use in the country. Yet, the other provincial governments tell us there would be chaos and predatory pricing without a monopoly distributor.
Yet, the reality is the opposite. Strikes, shortages and hacks are all too common.
Like Ringo Starr said, “everything government touches turns to crap.” And that includes cannabis distribution.
In addition to the actions of monopolistic tax-funded distributors, other factors contribute to this perceived “race to the bottom” that has the OCS CEO so worried.
OCS CEO OUT TO LUNCH
OCS CEO Out to Lunch
Initial high prices after legalization, in addition to regulatory costs, high taxes, zero tolerance on advertising and marketing, and monopoly distribution, have led to market chaos.
Botched legalization results from government interference, not some intrinsic aspect of the free market. The cannabis market in Canada was freer before Justin Trudeau inserted himself.
But the OCS CEO isn’t interested in this kind of analysis. He told the audience at Lift, “We don’t yet know how fragile consumer trust and social license with Canadians truly is.”
He asks, “What happens if we have a major recall resulting from adverse product reactions, negatively impacting the health of many Canadians?” As if that hasn’t already happened.
The OCS CEO says the cannabis industry could be impacted by a “lapse in judgment” from a few people.
“How large of an impact can a few unfortunate events have on the moral high ground we have in positioning legal cannabis as a better alternative to illegal?”
The OCS CEO is out to lunch.
Legal cannabis in Canada never had the moral high ground. Provincial governments gave large, well-connected producers exclusive deals with monopoly distributors while “illegal” B.C. Bud had to fight for their existence.
Legalization was never about bringing British Columbia‘s cannabis community up from the shadows. They were re-branded as “organized crime” as soon as Justin sat in the PMO. Even now, they are handicapped by “micro-licenses” and excise taxes.
Canada’s cannabis consumers continue to purchase from these underground “illicit” markets for various reasons.
They could know and trust their local grower more than these large pharmaceutical-style producers. They could want an edible that authorities don’t arbitrarily cap at 10mg for faux “public health and safety” reasons.
Canada’s connoisseurs recognize that cannabis is a vegetable. It belongs in your farmers’ market, not sterile pharmaceutical-grade facilities.
OCS CEO DOESN’T SEE THE CRASH COMING
OCS CEO Out to Lunch
The OCS CEO is out to lunch. What’s happening is a correction. Cannabis in Canada is returning to its economic fundamentals.
But market chaos and bankruptcies are only beginning. The best thing governments can do for cannabis in Canada is follow Saskatchewan’s example: get out of the way.
As for the “race to the bottom,” – when did lower prices become a bad thing? Last I checked, cannabis consumers can get more for less.
Some may argue that “deflation” or lower prices harm the producers at the expense of producers. But this is economic illiteracy.
If lower consumer prices are negatively impacting cannabis producers, it’s because the costs of business have been inflated due to “public health” policies and central bank inflation.
The OCS CEO addresses a real problem. But he is out to lunch on the solutions. Which isn’t surprising.
As Upton Sinclair once wrote, “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”
FOOTNOTE(S)
https://www.thecanadianpressnews.ca/health/cannabis-price-race-to-the-bottom-hurts-markets-future-ocs-ceo/article_a53b7d0c-9936-5e7f-8aff-3cc916a8c5b0.html
https://leger360.com/surveys/the-david-johnston-report-and-electoral-interference/
https://www.saskatchewan.ca/government/cannabis-in-saskatchewan/cannabis-use-in-saskatchewan#retail-sales
https://mises.org/library/deflating-deflation-myth
Home / Cultivation
California reports 94% of cannabis excise taxes paid as sales, revenue dip
By MJBizDaily Staff
June 1, 2023
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Nearly 94% of cannabis excise taxes that marijuana businesses owed to the state of California have been paid, according to state officials, who also noted that both total sales as well as tax revenue declined in 2022.
Cannabis sales in California are subject to two main taxes: the state’s basic sales tax, which starts at 7.25% but can reach as high as 8.25% in certain jurisdictions, and a 15% excise tax unique to cannabis, which retailers must collect from customers and remit to the state.
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According to California Department of Tax and Fee Administration (CDTFA) data shared with MJBizDaily, 94% of excise taxes due had been paid as of May 16.
CDTFA reported $5.38 billion in taxable cannabis sales in 2022, and total taxes due on that amount is $1.11 billion.
The state reported $278 million in outstanding unpaid state taxes, according to CDTFA spokesperson Tully Lehman. The amount includes outstanding excise and sales taxes across multiple years as well as unpaid cultivation taxes accrued prior to that levy’s elimination last year.
The figure does not include revenue due to the state that businesses haven’t yet reported, Lehman said.
Both cannabis sales and taxes declined in between 2021 and 2022. The state reported $1.3 billion in tax revenue based on 2021 sales of $5.781 billion.
To date, nine cannabis businesses in arrears on their state taxes have requested payment plans, Lehman told MJBizDaily.
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Marijuana retailers have long bemoaned taxes as a chief reason why California businesses are struggling to compete with the untaxed illicit market.
Other states appear to have taken the lesson to heart. Minnesota, where Gov. Tim Walz signed adult-use marijuana legalization into law this week, will tax cannabis sales at 10%.
Home / All U.S.
Cronos pulls plug on US hemp and CBD operations
By MJBizDaily Staff
June 1, 2023
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Canadian cannabis company Cronos Group is pulling out of the U.S. hemp-derived CBD market.
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The Toronto-based company said the wind-down is meant “to improve its cash flow in the near term and position itself to directly enter the U.S. THC market when the necessary changes in U.S. regulatory conditions occur.”
Cronos acquired its hemp assets in 2019 from Redwood Holding Group in a deal worth $300 million.
The Lord Jones brand acquired as part of that deal will be relaunched in the Canadian adult-use cannabis market.
Cronos said the move will result in inventory write-offs, severance costs and impairment charges worth up to $1.8 million during its ongoing second quarter.
The company also is boosting its target for operating-expense savings in 2023 to $20 million-$25 million, up from $10 million to $20 million previously.
“We believe that one day, the U.S. will be one of the most important cannabis markets in the world,” Cronos CEO Mike Gorenstein said in a statement.
(Bonno: Mike should know that the U.S. is the most important cannabis market in the world, and, like Canada, the market is own by legacy . They are in the same shit show as Canada and Europe. Selling under cost to stay afloat.
“But we also believe our resources are best spent on staying laser-focused on becoming cash-flow positive by driving cost savings and process efficiencies for our borderless adult-use products.”
(Bonno:They should work on beating legacy on cost and quality. But they cannot.)
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Cronos lost $168.7 million during its last full fiscal year and posted a net loss of $19.3 million during its first quarter of 2023.
The company reported $861.5 million in cash on its balance sheet as of March 31.
Altria Group invested $1.8 billion in Cronos in a deal that closed in 2019, but the tobacco giant abandoned its warrant to purchase more Cronos shares in late 2022.
Last October, Cronos announced settlements with both the U.S. Securities and Exchange Commission and the Ontario Securities Commission.
Shares of Cronos trade as CRON on the Nasdaq and the Toronto Stock Exchange.
Fact: LPs are done everywhere except Thailand…
The US has the same problem as Canada.
No money to be made as big corp is too fat and they don’t know this market.
There is no LPs in Thailand.
You get a tax number and you start growing to sell.
Stock market bunk weed is doomed.
Hendrix was right… move over Rover and let Jimi take over.
Trulieve closing Massachusetts dispensaries, shuttering California location
Jun. 01, 2023 9:57 AM ETTrulieve Cannabis Corp. (TCNNF)By: Jonathan Block, SA News Editor10 Comments
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Cronos Group Exits Its US Operations After Spending $300 Million To Acquire Them During Height Of Cannabis Bubble
June 1, 2023 8:37 AM ER Velasco 0 Comments Cronos Group
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Cronos Group (NASDAQ: CRON) announced on Wednesday that it will be closing down its existing US hemp-derived CBD-focused operations by the end of Q2 2023. The company stated that it made this decision to increase its cash flow in the short term and to position itself to enter the US THC market directly when the necessary adjustments in US regulatory conditions arise.
“We believe that one day, the U.S. will be one of the most important cannabis markets in the world,” said CEO Mike Gorenstein. “But we also believe our resources are best spent on staying laser-focused on becoming cash flow positive by driving cost savings and process efficiencies for our borderless adult-use products.
The move will yield additional expenses expected to be incurred in the second quarter, up to $1.8 million comprised of inventory write-offs, severance and other employee costs, and asset impairment charges.
The company is also raising its previously announced 2023 operational expense savings target from $10 to $20 million to $20 to $25 million, owing in part to its plan to wind down and abandon its existing US operations.
Cronos will instead focus on launching the Lord Jones brand in the Canadian market by Q4 2023 while investing in research and product development in preparation for when the U.S. THC market opens.
Back in 2019, Cronos bought then US-based CBD startup Lord Jones for $300 million, which was 75 to 150 times the company’s 2018 annual revenue. Also noteworthy is that a fund co-founded by the Cronos CEO and a longtime director stood to get 40% of the purchase price, plus over $20 million in fees.
Prior to the deal, Gorenstein and board member Jason Adler, who also have a private-equity firm called Gotham Green Partners, saw their fund pay $12.8 million for a 40% stake in Lord Jones. The fund stood to make $21 million in fees, plus a $107.2 million profit on the increase in value of Lord Jones shares from the transaction with Cronos, as per Marketwatch.
The move comes as the firm is reeling from its regulatory kerfuffle with the Securities and Exchange Commission last fall. The company and its former chief commercial officer William Hilson were charged by the SEC with accounting fraud for improperly reporting revenue during various quarters.
Specifically, the SEC alleged that Hilson made a $2.3 million oral deal to sell raw cannabis and then repurchase the subsequent cannabis product later on, which was not disclosed by Cronos Group on its accounting documents.
A similar case was put forth by the Ontario Securities Commission owing to Cronos incorrectly recognizing $7.6 million in revenue from three wholesale cannabis transactions in its Q1, Q2, and Q3 2019 interim financial statements.
In its Q2 2021 interim financial statements, the company additionally inflated practically all of its US goodwill and a major percentage of its US intangible assets by a total of $234.9 million. As a result of these accounting errors, the firm revised its interim financial statements for the first, second, and third quarters of 2019, as well as its interim financial statements for the second quarter of 2021.
Cronos revealed material flaws in internal control over financial reporting in both cases.
The Canadian cannabis company paid a $1.3 million administrative penalty and an additional $40,000 towards the cost of the OSC’s investigation.
Two problems with Canada's incomplete/flawed data:
1) Canada is making very important decisions on cannabis law and regulation based on its flawed data
2) Now Canada is presenting its flawed data to other countries. That will create unmeetable expectations there. Not ideal
Two problems with Canada's incomplete/flawed data:
1) Canada is making very important decisions on cannabis law and regulation based on its flawed data
2) Now Canada is presenting its flawed data to other countries. That will create unmeetable expectations there. Not ideal
????'s health minister appears to have told ????'s health minister 70% of the illicit market for cannabis in ???? is gone.
But it's not true. Will explain using Health Canada's own data. (important to stick to reality lest we give german politicians and voters unmeetable expectations)
In other words, if the ???? gov't continues to ignore the reality of the country's thriving unregulated cannabis market, it will be much harder for them to craft/adapt regulations to allow legal businesses to meet demand for consumers/businesses who remain in the illicit market.
Even if ???? has only captured half of the illicit market in terms of kg/$ (we don't actually know), that's still a huge policy & public health success. We're only 5 years in legalization. Not confronting reality will only make the task at hand harder.
Even if ???? has only captured half of the illicit market in terms of kg/$ (we don't actually know), that's still a huge policy & public health success. We're only 5 years in legalization. Not confronting reality will only make the task at hand harder.
It's a major, major stretch to get from: 63% of Canadians 'always' or 'mostly' buy their cannabis from a legal source
To: 70% of the illicit cannabis market is "gone".
But that's not even the biggest problem with this data.
You just made a penny
You just made a penny!??
They are lucky to have grabbed 70% of legacy’s…
But they cannot make a freaking penny.
The reality is legacy market has grabbed 70% of bunk lps weed.
And that is where the ?? is being made.
But how would canna naïve lp share understand that?
If you don’t know the canna scene you are blind to the fact thet lps are doomed.
www.headz.cc vs lps
Heute Treffen mit der Kanadischen Ministerin für Mental Health and Addiction Dr. Bennett zum Thema Cannabis Legalisierung. Die Ärztin sagt Legalisierung habe dort nicht zu einer Zunahme des Konsums geführt, auch nicht bei jungen Menschen. 70% des Schwarzmarktes sind verschwunden.
???? 's health minister appears to have told ???? 's health minister 70% of the illicit market for cannabis in ???? is gone.
But it's not true. Will explain using Health Canada's own data. (important to stick to reality lest we give german politicians and voters unmeetable expectations)
Two Dozen Publicly Traded U.S. Cannabis Companies Lost $4 Billion Last Year
John Schroyer
May 30, 2023
MedMen Trims Losses, But Still a huge Going concern.
Many companies dealt with significant one-time writedowns in 2022.
Two dozen of the top plant-touching publicly traded marijuana companies in the United States posted a cumulative financial loss of more than $4 billion in 2022 against nearly $9 billion in revenue, according to analysis of filings by Green Market Report.
The group of companies – a mixture of multistate operators and a few that are only in California – has a wide U.S. footprint, with licensed operations in 28 states, Washington D.C., and Puerto Rico. Many hold substantial market share in East Coast markets and the Midwest, including in Illinois, Michigan, Massachusetts, New York, New Jersey, and Ohio.
Only three of the 24 companies - Green Thumb Industries, MariMed, and Vext Science - ended 2022 in the black, reporting a total of $36.5 million in profit. The other 21 companies posted a cumulative $4.1 billion in losses.
The largest swath of red ink in 2022 was posted by iAnthus, which recorded a net loss of $449 million, followed by Columbia Care with a $421 million net loss, and then Curaleaf with a $376 million net loss.
The smallest annual loss by any of the companies examined by Green Market Report was Medicine Man Technologies, which does business as Schwazze, with an $18 million net loss.
The two dozen companies at the end of 2022 also as a whole had:
$1.3 billion in cash reserves.
$12.5 billion in total liabilities.
$21.6 billion in total assets.
"We're having some big problems," said Alan Brochstein, founder of New Cannabis Ventures and 420 Investor, when asked his opinion on the 2022 results. "We need real buyers to show up."
Bunk weed is a bust.
More than $2 billion of the losses last year were in one-time writedowns by a dozen of the 24 businesses, noted GreenWave Advisors founder Matt Karnes. That includes $340 million in impairment charges by Columbia Care and $225 million by Curaleaf, as just two examples.
But even with those write-downs taken into account, both companies still would have posted multimillion dollar losses, Karnes said. That reality reflects the difficult path to profitability for marijuana businesses selling poor quality weed.
"It’s a big number, but it’s not surprising, given the headwinds," Karnes said of the $4 billion loss. "Last year, we saw a lot more of these impairment charges, as the public markets started to tumble. All these acquisitions, the valuations had to be reconfigured, readjusted."
The high sales numbers from 2020 and early 2021 - along with the victory of President Joe Biden and the Democratic Party in the 2020 elections - led to widespread industry optimism that federal cannabis reform wasn't too far off, Brochstein said. That in turn caused some companies to overextend themselves with expensive expansion plans, the bills for which basically came due in 2022 and underpinned much of the toll taken on the sector's bottom line.
"Coming into (2022), a lot of people - me included - saw how bad 2021 was, and we were thinking, 'The world’s going to change.' And no, it didn’t," Brochstein said. "When you boom short-term, and nobody knows it’s short-term, and all of a sudden you make up for it, it looks terrible. That was one of the things that happened."
And of course, the general costs associated with operating in a federally illegal industry, which range from immense federal tax bills under 280E to higher insurance and real estate costs, also contributed, Karnes noted. The Internal Revenue Service takes about 12% of cannabis revenues under 280E, Karnes said he once calculated.
All of that helps make profitability elusive for the sector.
"It’s not because these companies suck - I mean, some of them do - but the headwinds are insurmountable," Karnes said. "If you factor all that in, of course you’re going to have a loss. So it’s really a testament to the guys who are making a profit."
Yet another factor has been widespread cannabis price compression and oversupply, Brochstein noted, which has put more pressure on profit margins as the nationwide industry has grown.
"As the companies matured, it made their cost of production go down and their ability to sell go up, and it created pricing pressure. So weak demand and more supply, you don’t have to be an economics major like me to know, (that's a) bad combo," Brochstein said.
Case By Case
However, the cumulative bottom line figure doesn't do justice to the reality that many of the companies are very different and need individual due diligence by investors to figure out if they're poorly managed or well-run and simply weathering harsh market conditions, Brochstein said. Painting the entire sector with a broad brush regarding financial losses creates an inaccurate picture.
"Every company is going to be different," Brochstein pointed out, adding that the list of 24 companies includes several companies on which he's quite bullish, next to others that he said are "piles of poo."
"Statehouse comes to mind," Brochstein said derisively of the California-based MSO that lost more than $240 million last year. "iAnthus. Disaster. MedMen. Disaster."
But Brochstein also praised Nevada-based Planet 13 Holdings and Florida-based Trulieve.
Operational cash flow for each company is also another important factor for investors to consider, said Karnes, who pointed to both Trulieve and Illinois-based Green Thumb Industries as having posted solid performances in that regard.
The same individuality also applies to each U.S. state market, given how they're all structured independently of each other. That makes every company's market dynamics different.
But one of the biggest issues undergirding the 2022 financials, Brochstein said, is a lack of interest by serious investors.
"The problem is that the retail investor that has supported the cannabis industry has put too much money into it and wants out, period. And we have no way right now to get new investors, especially institutional investors. That is the big problem. Falling estimates are part of that, because they lead to, nobody wants to buy," Brochstein said.
Will It Turn Around?
Karnes believes companies will improve on their 2022 performance this year, if only because it would be hard for the 24 companies to fare worse. And, he noted, the writedowns were one-time charges.
Many of the public companies also have been cutting costs, laying off employees, and implementing new efficiencies - trying to wipe out the red ink.
Still, he's not impressed by the performances of companies that have so far released their financials for Q1 2023.
"This year, it’s going to be tough. But the guidance for this year hasn’t been all that significant for growth," he said.
Until Crappy reach 100$, you can purchase Trump Bucks…
You will have huge return on those as well.
You got to load up man.
Now is the time!
When accuracy’s not accurate… ??
Suckers don’t mind but.
They will all be MILLIONAIRES next year!
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S&P Global Withdraws Canopy Growth’s Credit Ratings At Company’s Request
May 30, 2023
S&P Global Inc. has complied with a request from Canopy Growth Corp. (TSX: WEED) to withdraw its credit ratings following the cannabis company’s decision to amend a 2022 credit agreement.
The New York-based ratings and research firm had previously given Canopy a “selective default” rating on its long-term issuer credit, indicating the company had failed to meet one or more of its financial obligations on time.
The change stems from an October 2022 amendment to Canopy’s term loan credit agreement, which eliminated the need for ratings from two agencies. A Canopy representative told Bloomberg that the move is part of the company’s ongoing efforts to streamline resources, which led to the decision to withdraw its public rating with S&P.
Presently, Canopy holds a “CCC-” rating from Fitch Ratings, after getting downgraded in October 2022. Fitch’s decision was based on a perceived significant reduction in the financial ties between Canopy and its main investor, Constellation Brands Inc.
This withdrawal from S&P follows Canopy’s recent voluntary application for a management cease trade order with various regulatory bodies, following the need to refile several quarters worth of financial statements due to problems with the accuracy of reported figures for its BioSteel Sports Nutrition segment.
Originally, Canopy had intended to release its year-end fiscal 2023 financial results earlier this week.
Canopy Growth Corp. last traded at $1.18 on the TSX.
Bit of smoke?
Lots of smoke!
Can’t see clearly!!!
Doomed suckers…
Bit of smoke?
Lots of smoke!
Can’t see clearly!!!
Doomed suckers…
Only a matter of time for this LPs Ponzi to pop open and burst in flame…
LPs are great at selling shares.
Doomed at selling bunk weed but…
Selling under production cost is a no-no in any business i’ve worked at.
This doomed scenario won’t affect canna market naive bag holders until LPs run out of cash.
These bogus Corp owe millions in unpaid.back taxes.
Wake up call will be a dusy.
The shit will hit the fan.
You can only Trump suckers so much….