February 26 2021,

TOGETHER WITH

DEALFLOW HEATS UP AS NEW YORK DEBATES REC
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(Photo by Stephanie Keith/Getty Images)

Dealflow is accelerating (Paywall) with an eye on the mid-Atlantic's biggest prize: New York's REC market. Both  Gov. Andrew Cuomo(D) and more progressive lawmakers are eager to legalize this year, potentially as soon as April 1, when the state budget process ends.
Business Insider

Quick Hits

  1. In California, Indus Holdings acquired pre-roll brand Lowell Herb Co. for $39M.
    Benzinga
  2. After many stops and starts, Hightimes Holdings is targeting 4/20 to go public in an over the counter offering.
    Cheddar
IN CALIFORNIA, THE TAXMAN COMETH
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(Photo Illustration by Scott Olson/Getty Images)

Tax experts are sounding the alarm that California regulators have stepped up their tax enforcement with audits and steep bills in store for some businesses. 
MJBiz

  • The pile up owes to various factors kicking in three years after the state REC market opened.
  • Numerous audits are reportedly already underway.
  • “It should be no surprise these are beginning, and they will be very productive for the state of California,” predicted CPA Patrick Finnegan, a former state auditor. "It's going to be a turkey shoot."
  • One attorney estimated the city of Oakland alone is owed more than $10M.
  • PLUS: The head of the IRS said he would "prefer" it if the industry could pay its taxes electronically.
    Marijuana Moment
PRO-LEGALIZATION LAWMAKER BUYS POT STOCKS
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Congressman John Yarmuth (D-Ky.), chair of the powerful House Budget Committee, purchased several pot stocks while advocating for legalization, Popular Info reported.

  • In November, Yarmuth purchased between $1,000 and $15,000 in Canopy Growth Corporation, Aurora and Tilray, according to a filing. 
  • Weeks later he promoted his co-sponsorship of the MORE Act, which would decriminalize federally and passed the House of Representatives.
  • In February, he increased his holdings in the three stocks.
  • A spokesman for the Congressman said it was ethical because he did so transparently.
  • Members of Congress can trade stocks, but not based on inside information.
IN THE NEWS — 2/27/21
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