The Weekly Stash is a recap of the week’s top business headlines in the cannabis industry for the week ending February 10, 2023.

Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) reported slumping revenues on Thursday and signaled a new cost-savings era that includes cutbacks on cultivation and 800 layoffs. Revenue fell by 28% to $101 million in the quarter. Canopy ‘s historical cash burn has swelled its net losses 131% over the year to $266.7 million. Cash and short-term investments fell by a whopping $583 million to $789 million at the end of December from $1,372 million at the end of March 2022.

The acquisition of New York medical cannabis operator Etain by Riv Capital is entering another messy chapter. Scotts Miracle-Gro (NYSE: SMG), owner of the hydroponic company Hawthorne, has filed a lawsuit against Jason Wild and TerrAscend (OTC: TRSSF) claiming they ruined its $175 million investment. Hawthorne is complaining that Wild fought Riv Capital’s plans to buy Etain asking the board to call off the deal and threatening to attain a hemp license in the state in a move to kill the deal. Wild’s position is that Riv Capital overpaid for the property. 

SNDL Inc. (Nasdaq: SNDL) finalized its purchase of Canadian dispensary chain Superette out of bankruptcy, with plans to support the brand and its stores.SNDL will license some of Superette’s IP to Spirit Leaf Ontario for their retail locations, the company said.

In state news,

Over the first three-day weekend of legal recreational marijuana sales in Missouri, medical and adult-use retail sales combined to hit $12.6 million in sales, the state announced. Many shops reported long lines this past Friday. According to the Missouri Department of Health & Senior Services’ Cannabis Division Regulation, the industry sold $8.5 million in recreational cannabis and another $4.1 million in medical marijuana for Feb.3-5, for a grand total of $12,689,965.

In a break from a national trend, a federal judge in Washington state upheld the state’s residency requirement for cannabis business ownership and ruled that the U.S. Constitution’s dormant commerce clause doesn’t apply because marijuana is still federally illegal. U.S. District Judge Benjamin Settle sided with the Washington Liquor and Cannabis Board and tossed a lawsuit filed in 2020 by marijuana investor Todd Brinkmeyer, who had asked the court to rule that Washington’s residency requirement is unconstitutional. 

The start date for Maryland’s upcoming adult-use cannabis market could be as soon as July 1, under the terms of a new legislative bill introduced this week by state lawmakers.

New York has said it will begin cracking down on illegal operators while the state’s Office of Cannabis Management recommended that medical licenses be expanded. The OCM also suggested that medical patients no longer have to register. 

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The post The Weekly Stash: February 10, 2023 appeared first on Green Market Report.

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) is finally exiting a trio of legacy western states in search for better profits. The exodus will begin this month with the “proactive closure of the majority of its operations” including its production and cultivation facilities in California, Colorado, and Oregon. The company cited the lack of enforcement over the illicit market and price compression as to why it was tapping out of the west coast. The company is also laying off 10% of its workforce. The company said it expects to save $60 million through the moves.

New York-based Ascend Wellness Holdings (CSE: AAWH.U) (OTCQX: AAWH) announced its expansion into Maryland with its $19 million purchase of Devi Holdings, which runs four operational medical marijuana dispensaries. The move marks the seventh state in which Ascend Wellness has a footprint, according to a press release. The company already has cannabis shops in Illinois, Massachusetts, Michigan,  New Jersey, Ohio, and Pennsylvania, according to its website.

Long-awaited federal guidance on cannabis clinical drug trials for humans has finally arrived. The guidance document from the U.S. Food and Drug Administration follows the 2018 federal farm bill, which removed cannabis with less than 0.3% THC by dry weight from the list of controlled substances. The move could dramatically accelerate the value of the CBD industry, which has been waiting on the guidance, and it could also help the industry back up some of the health claims various companies have made, which got them warning letters from the agency.

In state news…

Mississippi began its medical cannabis sales this week. The state legalized medical marijuana just a year ago. 

New York opened its first social equity applicant dispensary and the state approved 30 more retail licenses. 

In legal news this week, Nike is suing a Texas cannabis company for using the slogan “Just Hemp it”. A Michigan developer filed a $60 million lawsuit claiming delays led to a loss of funding and tenants for its project and Helping Hands Wellness Center Inc. in Nevada had its licenses suspended after inspectors “discovered Helping Hands’ employees were diverting product to the illicit market. 

As a reminder, you can now submit applications to the 2023 GMR Women’s Leadership Awards, just head over to the website and there’s a link in our Summits tab.

Next week we expect earnings from High Tide, Scotts Miracle-Gro, and MedMen.

The post Weekly Stash: January 27, 2023 appeared first on Green Market Report.