May 13 2022,
THE BIG IDEA
WHAT YOU MISSED IN WEEDWEEK CALIFORNIA PRO
Calif. distru wars get nasty
California’s two leading distributors Herbl and Nabis and a leading concentrate maker, Raw Garden, are locked in a nasty legal battle over Raw Garden’s switch from Herbl to Nabis early this year.
The case’s details, reported here for the first time, offers a look at the rivalry between two key companies, and their relationships with one of the state’s top brands.
PLUS: Calif. cannabiz waits for Gov. Newsom’s tax plan; Why Weedmaps bought Enlighten and lots more.
ERRATIC EARNINGS SEASON FOR POT STOCKS
It’s been an erratic earnings season for long suffering pot stock holders:
- MSOs TerrAscend, Goodness Growth (formerly Vireo), MariMed and Trulieve saw bumps in revenue. Trulieve expects to sell $1B in weed this year.
- Ancillary players Agrify, Urban Grow, Hydrofarm, Weedmaps’ parent and Innovative Industrial Properties saw revenue growth.
- Revenue was flat at MSO Green Thumb Industries.
- Operators Aurora, iAnthus, Cronos Group, Curaleaf, Village Farms, Glass House Ascend Wellness, and Acreage saw revenue fall. So did hydroponics retailers Scotts Miracle-Gro’s Hawthorne Gardening and Grow Generation.
Disclosure: WeedWeek editor Alex Halperin holds a long position in a diversified pot ETF.
"STORIED" JUNGLE BOYS ALLEGEDLY DOESN'T ALLOW PREGNANT EMPLOYEES
Two former-employees have sued companies affiliated with SoCal operator Jungle Boys, alleging wrongful termination, unlawful retaliation, failure to pay all wages due and “false imprisonment” among other claims. The 45-page complaint also alleges that the defendants did not allow pregnant women employees.
High Times recently called Jungle Boys, which was established in 2006, a “storied” company and “one of the premier examples of urban farmers bootstrapping their way to success.”
In a statement, Arthur Hodge, a lawyer for the defendants, wrote that an initial investigation found the allegations to be inaccurate and that the defendants would contest the matter in court.
- Colorado Rep. Ed Perlmutter (D) continues to push for bank reform before his retirement.
- Banking Dive looks at the latest in payment options.
- Nationwide legal sales eclipsed Starbucks in 2021.
- Data shop BDSA says nationwide sales were flat in March. But Michigan had a very strong April.
- MSO Columbia Care faces a shareholder lawsuit trying to block its $2B acquisition by MSO Cresco Labs.
- MedMen dropped its seller’s remorse lawsuit against fellow MSO Ascend Wellness Holdings in New York.
- MSO Trulieve says it’s set to sell more than $1B in cannabis this year.
- Are high gas prices an opportunity for weed marketers?
- Mike Tyson’s Tyson 2.0 brand filed for trademarks in connection with his ‘Mike Bites’ ear-shaped edibles.
- Green Market Report says debt troubles facing MSO Parallel could hit REIT Innovative Industrial Properties.
- Delaware’s Senate passed a legalization bill which would not allow an industry. It now goes to Gov. John Carney(D), who may not sign it. A separate commercialization bill advanced in the house.
WDEL, Marijuana Moment
- Oklahoma made its MED regulator a standalone agency.
- In Colorado, competing psychedelics legalization initiatives are collecting signatures for the November ballot.
- Connecticut regulators received more than 15,000 license applications.
- Illinois hinted it will soon issue 60 craft grow licenses.
- In Detroit, MED businesses are suing to win REC licenses.
Detroit Free Press
- In Maryland, 27-year old Jonathan Wall was convicted of federal drug charges for bringing California weed to Maryland. He faces 10 years to life.
- In Maine, a federal judge denied a man’s request to use MED while awaiting trial for running an illegal marijuana operation.
Fun and interesting:
- Rapper Killer Mike discussed what legalization should look like.
- Former WeedWeek California editor Donnell Alexander writes about what happens when weed comes to the country club.
- WeedWeek isn’t sure if sending seeds across state lines is legal, but some people seem to think it is. With that in mind, Washington City Paper recommends 10 online seed banks.
- Primitiv, a Michigan dispensary started by former NFL stars Rob Sims and 2021 Hall of Fame inductee, Calvin Johnson Jr., opened its first store in southwest Michigan.
- Colorad0-based Schwazze, parent of Star Buds, announced a partnership to bring Lowell Smokes to New Mexico.
- Leading MSO Curaleaf named Matt Darin CEO. A founder and COO of Grassroots Cannabis, which Curaleaf acquired in 2020. At the time, Grassroots was a 12-state MSO, Darin previously worked for a decade in commercial real estate.
- The Massachusetts Cannabis Control Commission named Sarah G. Kim interim chair. She previously served as the state’s deputy treasurer and general counsel overseeing the liquor regulator.
- BDSA exec Jessica Lukas said she was stepping down.
- Edibles maker Wyld added apple and cherry sours to its product line. Both are available across Oregon, California, Colorado, Nevada, Arizona, Michigan and Washington. (Pictured)
- Sonoma County (Calif.)-based Vintage Wine Estates acquired House of Saka and the IP from Gem + Jane has has hired CannaCraft exec Tracey Mason to take the venture national.
North Bay Business Journal
- Kaliko Castille, former head of the Minority Cannabis Business Association is running for state representative in Oregon.
- @hivi.life spotlights AAPI women in the cannabiz.
- @supernovawomen has launched a fund to support equity businesses hit by burglary or vandalism.