AP Photo/Richard Vogel
Welcome to Insider Cannabis, our weekly newsletter where we're bringing you an inside look at the deals, trends, and personalities driving the multibillion-dollar global cannabis boom.
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Happy Friday everyone,
After a busy few weeks, cannabis earnings are winding down- this week we had Jushi, Planet 13, and a few other companies report results as we come to the tail end of a very eventful earnings season.
There were also a slew of deals this week, including an unexpected strategy announcement on the part of US cannabis company TILT Holdings to enter New York. On Tuesday the company said that it had made a deal with the Shinnecock Indian Nation of New York to develop a vertically integrated cannabis operation on their tribal territory.
We'll be on the lookout for similar deals that give companies a way to enter the Empire state as vertically integrated enterprises.
Speaking of New York, Governor Kathy Hochul was officially sworn in. As we previously reported, this could be good for the cannabis industry, which has been waiting months for regulations to roll out.
Hochul's Deputy Director of Communications Jason Gough told me in an email yesterday that the administration is "actively working" to ensure that the Cannabis Control Board and Office of Cannabis Management (the regulatory bodies tasked with creating the rules around the new market) can start implementing a cannabis program as soon as possible.
We'll be watching closely as seats on New York's Cannabis Control Board and Office of Cannabis Management start filling up.
My canna buddy Jeremy will be back next week, most likely with a killer tan and a stomach full of pasta.
- Yeji Jesse Lee (@jesse_yeji)
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Executive moves
- US cannabis company Acreage Holdings said on Monday that it had appointed Pfizer's former director of public affairs, Bryan Murray, as executive vice president of government relations.
- Communications firm KCSA announced that former 4Front Ventures president Kris Krane is joining to head its Chicago office and expand its cannabis practice.
- Canadian cannabis company HEXO said it appointed Guillaume Jouët as its new chief people & culture officer.
Deals, launches, and IPOs
- HEXO said on Tuesday that it closed a previously announced $144.8 million underwritten public offering.
- US cannabis company TILT Holdings said on Tuesday that it made a deal with the Shinnecock Indian Nation of New York to enter the state.
- Cannabis e-commerce company I Heart Jane announced that it raised $100 million in a Series C round led by Honor Ventures.
- Psychedelics biotech company FSD Pharma announced on Wednesday that it will acquire Lucid Psycheceuticals for $9 million.
- The Green Organic Dutchman Holdings announced on Thursday that it had gained conditional approval to uplist from the Toronto Stock Exchange to the Canadian Securities Exchange.
- Cannabis hydroponic company GrowGeneration announced two deals this week: one for Washington-based Hoagtech Hydroponics and another for Californian company Commercial Grow Supply. The company has made 14 such deals so far in 2021.
Policy moves
- New Mexico released rules for its cannabis market this week, giving more guidance for those looking to get involved in the industry. The state began to accept cannabis producer applications on Wednesday, according to Marijuana Moment.
Earnings
- Gage Growth released its Q2 results on Tuesday, reporting $26.4 million in revenue, and a net loss of $9.4 million.
- TILT Holdings released its Q2 results on Tuesday, reporting $48.5 million in revenue, and a net loss of $4 million.
- Jushi Holdings released its Q2 results on Wednesday, reporting $47.7 million in revenue, and a net profit of $4.8 million.
- Planet 13 released its Q2 results on Thursday, reporting $32.8 million in revenue, and a net loss of $4.4 million.
Chart of the week
Flower is still the king of cannabis, according to recent data from cannabis data firm Headset. In Canada, flower makes up 51.5% of the overall market while in the US that figure drops slightly to 46%.
What we're reading
More than 70% of New Jersey towns ban adult-use marijuana retail (MJ Biz Daily)
A "Window" Into What's Next for California's Cannabis Appellations (Cannabis Wire)
New Mexico Is Officially Accepting Recreational Marijuana Producer Applications (Marijuana Moment)