by Grow Up Conference | Jun 14, 2024 | Cannabis News Wire, Media Partners
A measure that would permit marijuana lounges to sell food and nonalcoholic drinks has been forwarded to California’s senate for approval. Several local governments have already permitted marijuana lounges, including government officials in Oakland, San Francisco, Weed and Sacramento.
The recent measure, Assembly Bill 1775, was authored by San Francisco Democrat and Assemblymember Matt Haney. This is the second attempt in which Haney is introducing such a measure, after a similar bill was vetoed by Governor Gavin Newsom in 2023.
The new measure includes amendments to ensure there is separation between food areas and marijuana consumption in lounges. This will allow businesses to sell tickets to different events, including music performances. Haney also highlighted that his measure wouldn’t legalize consumption lounges but expand the lounges’ offerings.
Currently, local governments in the state of California permit marijuana lounges where individuals can consume the substance on site. The businesses are allowed to provide prepackaged food and beverages but not prepare anything on the premises.
The proposed change is focused on helping the legal market, which is struggling. Speaking on behalf of the state’s National Organization for the Reform of Marijuana Laws, Pamela Lopez stated that this measure would improve consumer experiences. Lopez explained that marijuana lounges were important for urban communities, adding that a communal space where individuals could consume marijuana together was needed, particularly now that loneliness was at its peak.
This argument was supported by the spokesperson for the United Food and Commercial Workers Western States Council, Kristin Heidelbach, who noted that this change would also help prevent individuals from using marijuana in public spaces. Heidelbach referred to the measure as a lifeline for hurting businesses.
The measure was also supported by State Senator Roger Niello, who observed that he wanted to help legal marijuana businesses that were struggling.
Those who opposed the measure raised concerns on the dangers of secondhand smoke. American Lung Association’s Kesa Bruce claimed that the measure bypassed current state laws that protect individuals from secondhand smoke, noting that employees at these establishments had the same protections as any other employee.
Professor Suzaynn Schick of the University of California theorizes that secondhand smoke can affect the air quality of an area. Schick conducts research on how air pollution affects human health, focusing on how marijuana and tobacco smoke can cause diseases of the lungs and heart.
State Senator Richard Roth also noted that he was concerned about the effects of smoke but added that Proposition 64 approved areas such as marijuana lounges.
Companies such as Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) could take a keen interest in these regulatory developments in California as other jurisdictions could enact similar reforms.
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by Grow Up Conference | Jun 14, 2024 | Cannabis Prospect Magazine, Media Partners
CanaQuest Medical Corp announced strategic additions to its executive team with expertise in conducting clinical trials and US FDA drug approval success. The team plans to effectively navigate the regulatory approval process for Drug Candidate, CQ-001 (cannabidiol + proprietary API composition), to treat rare neurological conditions with a primary focus on epilepsy. Furthermore, a nutraceutical version of the formulation, Mentanine™, is scheduled for clinical studies to investigate its potential applications across various indications, paving the way for future clinical trials.
CanaQuest Team Buildout:
Lead Scientific Advisor – Dr. Jordyn Stuart, Ph.D., BS, BS, 12 years of pre-clinical cannabinoid research with emphasis on pharmacology and isolation, purification, and identification of endo- & phyto- cannabinoids; ~6 years with Greenwich Biosciences (subsidiary of GW Pharma, now Jazz Pharma) Medical Affairs including the launch of Epidiolex®
Chairman of Advisory Board – Dr. Paul Dick, DVM, MSc, Paul Dick & Associates, over 30 years of experience in the pharmaceutical and animal health industries, served on several boards: Animal Health Institute, President of the Ontario Veterinary Medical Association
Dr. Jordyn Stuart, Ph.D., stated, “My extensive experience in cannabinoid research and industry (Greenwich Biosciences, US subsidiary of GW Pharmaceuticals, now part of Jazz Pharmaceuticals) will be leveraged to advance CQ-001 through the clinical pathway to regulatory approval. After examining CanaQuest’s portfolio, I recognize the opportunity for CQ-001 to build on the successes of previously approved CBD-based medications. With its combination of active compounds, preliminary data suggests that CQ-001 may offer enhanced benefits by targeting multiple mechanisms of action beyond those of CBD alone, while also addressing issues of current formulations through enhanced bioavailability. I am eager to translate these data into clinical practice, with the aim of applying CQ-001 in neurological conditions characterized by a high inflammatory burden.”
Dr. Paul Dick, commented, “Based on my previous product development and commercialization experience and expertise, I believe that the CanaQuest team is well positioned to advance their clinical development program, leading to the timely submission of dossiers and subsequent regulatory review/ approval.”
Preclinical trials were conducted on rodents by Dr. Steven Laviolette, a professor, and neuroscientist, in the field of mental health and cannabinoids, at Western University. These results showed a positive anxiolytic effect and an improvement in the process of forming and storing memories, specifically those related to fear, both of which may be beneficial for conditions such as anxiety, depression, and PTSD.
A pre-clinical MES model of epilepsy conducted on mice at the Ontario Brain Institute revealed that the Drug Candidate CQ-001 demonstrated a 35% increase in potency compared to isolated CBD alone. This indicates that the drug is significantly more effective at reducing seizure activity.
Paul Ramsay, CEO of CanaQuest, stated, “I’m honored to welcome Dr. Stuart and Dr. Dick to our team. Their extensive experience and track record significantly mitigate risks associated with clinical trials and regulatory approvals, streamlining the path to securing drug approvals and enabling the commercialization of cannabidiol-based pharmaceuticals.”
Award
CanaQuest has been awarded, Endocannabinoid Therapeutics Development Company of the Year 2024, in the ninth annual Healthcare and Pharmaceutical Awards by Global Health & Pharma, UK.
About CanaQuest Medical Corp
CanaQuest Medical, a clinical-stage, life sciences company, is focused on the drug discovery and development of next generation targeted therapeutics within the endocannabinoidome, including PPAR receptors. CanaQuest is focused on treating neurological conditions, such as epilepsy, anxiety, depression, and Post-Traumatic Stress Disorder (PTSD). CanaQuest has created a novel natural formulation derived from cannabidiol + proprietary API composition. The company has a Drug Candidate, CQ-001, positioned for clinical trials targeting epilepsy. A nutraceutical version of the formulation (less potent) branded as Mentanine™, has been produced for clinical studies, to use data generated across various indications to support forward motion into future clinical trials. Positive effects on symptoms related to psychiatric and neurological conditions have been demonstrated in both preclinical trials and clinical studies.
by Grow Up Conference | Jun 14, 2024 | Cannabis Prospect Magazine, Media Partners
New Albany, IN – INDCO folding impellers are designed to enter through the small container openings often encountered in closed lid mixing environments, then expand to their full operating diameter as the mixer shaft rotates. Standard 2-blade folding impellers are sized for use with 2-inch standard bungs tup to 6-inch tote openings. They have an operational size from 2-3/8 inches to 14 inches in diameter. INDCO folding impellers provide a high-performance mixing experience, ensuring homogeneity and efficiency.
Closed lid mixing minimizes the risk of external contamination, and significantly reduces splashing and spillage, making clean-up faster and easier. Models are available in 304 and 316/316L stainless steel for chemical resistance, with some small diameter plastic impellers available for laboratory scale mixing applications. INDCO foldable impellers are compatible with various portable mixer types, including drum and tote mixers as well as for handheld mixers and drill motors. INDCO provides impellers only, or impellers mounted to mixing shafts suitable for handheld mixers and drill motors.
All INDCO products are made in the USA with industry leading warranties. Their team of mixing engineers is available to provide selection and application assistance.
Located in New Albany, Indiana, INDCO is a leading manufacturer of industrial mixers. Since 1975 they have designed and manufactured a completed lineup of mixers for batch sizes up to 50,000 gallons. They use premium brand components in their robust designs to deliver high quality mixers that earn their customer’s trust. In addition to premier equipment, INDCO prides itself on providing fast, friendly customer service and immediate technical support. Full information is available on their comprehensive website, www.INDCO.com, by calling (800) 851-1049, or via email at info@INDCO.com.
by Grow Up Conference | Jun 14, 2024 | Cannabis News Wire, Media Partners
- In the chemical manufacturing industry, innovative uses of mass spectrometry are a game-changer by ensuring quality control, increased yields, and increased profits
- Astrotech subsidiary, Pro-Control Inc., has positioned its product line between the need for the chemical manufacturers to offset lower prices with efficiency gains that could offset potential losses
- The Pro-Control Maximum Value Processing(TM) can perform in-situ process tests every 5 minutes greatly increasing efficiency across a wide range of chemical manufacturing processes
Mass spectrometry (“MS”) is becoming a transformative analytical technique that has revolutionized how materials are tested and processed in various industries, such as petrochemical. The supreme accuracy of MS in analyzing the molecular structure, purity, and potency of a substance has made it an indispensable part of several key sectors. In manufacturing settings, MS is a game-changer, as it is able to enhance the production processes with higher purity and yields. A key benefit is the ability to make these determinations directly in the production process making near-real-time adjustments, versus the delays traditionally incurred by sending the samples to the lab.
The global mass spectrometry market was valued at $5.4 billion in 2023 and is expected to grow to $7.8 billion by 2028, expanding at a CAGR of 7.5% (https://cnw.fm/Pt9E9). The technology’s capability to provide rapid, accurate, and detailed analysis makes it a growing preference for industries looking to enhance productivity and ensure product quality.
Astrotech (NASDAQ: ASTC), an instrumentation company that designs, manufactures, and commercializes mass spectrometry solutions, is expanding access to this technology through Pro-Control and its other vertically focused subsidiaries.
Pro-Control, a true innovator, harnesses the power of advanced mass spectrometry in its Pro-Control-1000(TM) rugged factory-floor instrument that allows production managers access to real-time testing results providing actionable information where previously it would have taken hours or days. This immediate, on-site, access to the highly accurate MS data provided by the Pro-Control-1000(TM) increases potency, purity and ending weight yields.
Role in Petrochemical Processing
Mass spectrometry is an invaluable analytical technique in the petrochemical industry, allowing for the identification and quantification of individual chemical components present in complex petroleum samples. This data is crucial for optimizing production processes, monitoring emissions, and ensuring the quality of finished products.
Application in Pharmaceutical Manufacturing
In pharmaceuticals, the precision of mass spectrometry is critical. It helps confirm drug molecules’ molecular structure and purity, which is essential for ensuring safety and efficacy. MS also plays a crucial role in identifying impurities or contaminants that might compromise the drug’s quality. Furthermore, it quantifies the levels of drugs in formulations, which is vital for accurate dosing. Another significant application is in characterizing protein-based biopharmaceuticals, such as antibodies, where MS provides essential information on molecular weight and structure.
Utility in the Food and Beverage Industry
The food and beverage sector also greatly benefits from mass spectrometry. MS techniques are used to test for pesticide residues, allergens, and other contaminants in food products. This helps ensure compliance with safety regulations and ensures consumer trust. Additionally, mass spectrometry assists in verifying the contents of nutritional labels—such as vitamins and proteins—enhancing label accuracy and transparency. It also detects food adulteration and identifies sources of spoilage or contamination, crucial for maintaining food quality.
Impact on Polymer and Materials Manufacturing
Mass spectrometry provides detailed insights into polymers’ molecular weights and compositions, which are vital for developing new materials with desired properties and performance. MS analyses additives and fillers in plastics and composites, ensuring products meet stringent quality specifications. It is also used to characterize surface coatings and thin films, critical for applications in industries like automotive and aerospace.
Role in Environmental Testing
Environmental testing is another critical application of mass spectrometry, where it identifies pollutants and toxins in air, water, and soil samples. This capability is essential for monitoring environmental health and compliance with regulations. Additionally, mass spectrometry measures isotopic ratios, aiding in geochemical and environmental tracing, which helps in understanding environmental changes and pollutant sources.
For more information, visit the company’s website at www.AstrotechCorp.com.
NOTE TO INVESTORS: The latest news and updates relating to ASTC are available in the company’s newsroom at https://cnw.fm/ASTC
About CannabisNewsWire
CannabisNewsWire (“CNW”) is a specialized communications platform with a focus on cannabis news and the cannabis sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled recognition and brand awareness. CNW is where breaking news, insightful content and actionable information converge.
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by Grow Up Conference | Jun 14, 2024 | Cannabis Prospect Magazine, Media Partners
Justera Health Ltd. has entered into a non-binding Letter of Intent (the “LOI”) on June 13, 2024, to acquire 100% of the issued and outstanding share capital of a leading solventless cannabis brand, Port North Extracts Inc. (“Port North”), an arm’s length privately held company (the “Transaction”).
Port North has gained popularity for their highly-specialized solventless extraction techniques and product lineup. Solventless extraction is the art of extracting the plant’s cannabinoids and terpenes without the use of chemical solvents like butane or ethanol. Port North utilizes only natural methods of ice, water, heat, and pressure to separate the trichomes from the plant. The results are solventless concentrates that provide more of each strains’ full characteristics and effects.
Concurrently with the Transaction, Port North intends to raise gross proceeds of up to $600,000 through a financing led by EMD Financial (the “Financing”) to be used as working capital. The Financing will involve the issuance of up to 30,000,000 Units (the “Units”) of Port North at a price of $0.02 per Unit. Each Unit will consist of one common share (each, a “Target Share”) in the capital of Port North and one common share purchase warrant (“Unit Warrant”). Each Unit Warrant will entitle the holder thereof to acquire one common share of Port North (each a “Warrant Share”) at a price of $0.05 per Warrant Share for a period of 24 months following the date of issuance. In connection with the Financing, Port North will pay cash finder’s fees of up to $48,000 and issue up to 1,200,000 Target Shares along with 1,200,000 broker warrants. Each broker warrant will be exercisable to acquire one Target Share at a price of $0.05 for a period of two years from the date of issuance.
The Transaction
The Transaction is expected to be structured as a share acquisition, with Justera acquiring all issued and outstanding securities of Port North. The parties anticipate signing a definitive agreement (the “Definitive Agreement”) containing, among other things, the applicable terms and conditions governing the Transaction, as well as representations, warranties, covenants, agreements, terms and conditions as are customary for transaction of a similar nature, on or before June 26, 2024, or on another mutually agreed-upon date.
The completion of the Transaction is contingent upon several conditions, including but not limited to the following:
- Justera acquiring the Target Shares for an aggregate purchase price of $2.2 million, which will be satisfied through the issuance of an aggregate of 110,000,000 common shares at $0.02 per share (the “Consideration Shares”).
- Justera and Port North, and the Port North shareholders in the event of a share exchange, having executed the Definitive Agreement;
- there being no prohibition at law preventing the completion of the Transaction;
- receipt of all required regulatory, shareholder and third party approvals including the CSE’s approval, and compliance with all applicable regulatory requirements and conditions necessary to complete the Transaction;
- Port North having a minimum cash of $600,000 at closing; and
- other mutual conditions precedent customary for a transaction of a similar nature.
“We are excited to take the next step with Justera,” said Josh Herman, CEO of Port North. “Together we can expand the brand to provide more customers with great quality cannabis products.”
Young Cho Lee, CEO of Justera, added, “This strategic acquisition marks an important step in expanding Justera’s footprint in the cannabis industry. Port North’s solventless extraction technology will enhance our product offerings and support our mission to provide innovative health and wellness solutions. We are eager to collaborate with Port North to achieve new milestones together.”
The Transaction is currently under review by the CSE and, upon completion of its review, the CSE may determine that the Transaction constitutes a “fundamental change” or “change of business” (as defined by policies of the CSE).
About Port North
Port North is a leading Solventless Cannabis Extract Brand. Operating from a state-of-the-art extraction facility in Port Elgin, Ontario, Port North utilizes specialized extraction techniques to provide pure, premium, 100% solventless extracts for the recreational and therapeutic cannabis markets.
About Justera Health
Established in 2020, Justera Health Ltd. is a Canadian company focused on health and wellness. Through its services, innovative products, strategic partnerships, Justera empowers individuals to prioritize their well-being. With four subsidiaries, it offers personalized healthcare services and solutions, such as IV Vitamin Therapy, premium nutritional supplements through its Naturevan Nutrition brand, a full 360-degree wellness and spa experience through Juillet Wellness that provides registered massage therapy, acupuncture, and new retail stores in Vancouver. Justera’s mission is to enhance Canadians overall well-being with diverse solutions catering to individual needs. For additional information on Justera Health and other corporate information, please visit the Company’s website at https://www.justerahealth.com/.
by Grow Up Conference | Jun 14, 2024 | Cannabis Prospect Magazine, Media Partners
High Tide Inc., the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, today released its financial results for the second fiscal quarter of 2024 ended April 30, 2024 the highlights of which are included in this news release. The full set of condensed interim consolidated financial statements for the three and six months ended April 30, 2024, and the accompanying management’s discussion and analysis can be accessed by visiting the Company’s website at www.hightideinc.com, its profile pages on SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov.
Second Fiscal Quarter 2024 – Financial Highlights:
- Revenue increased to $124.3 million in the second fiscal quarter of 2024 compared to $118.1 million during the same period in 2023, representing an increase of 5% year-over-year and (3)% sequentially, given this quarter had two fewer days and is also a seasonally slower quarter. 12-month trailing revenue exceeded $500 million for the first time in the Company’s history
- Gross profit increased to $35.3 million in the second fiscal quarter of 2024 compared to $31.6 million during the same period in 2023, representing an increase of 12% year-over-year and (2)% sequentially, given this quarter had two fewer days
- Gross profit margin in the three months ended April 30, 2024, was 28.4%, representing its highest level in the past nine quarters. This compares to 26.7% during the same period in 2023 and 28.1% sequentially
- Adjusted EBITDA increased to $10.0 million in the second fiscal quarter of 2024 compared to $6.6 million during the same period in 2023, representing an increase of 52% year-over-year and (4)% sequentially, given this quarter had two fewer days
- Adjusted EBITDA margin increased to 8.1% in the second fiscal quarter of 2024, compared to 5.6% during the same period in 2023 and was consistent sequentially
- Salaries, wages, and benefits represented 12.4% of revenue in the second fiscal quarter of 2024, which was largely consistent year-over-year and sequentially
- Given the strong cost controls the Company has been implementing, general and administrative expenses represented 4.5% of revenue in the second fiscal quarter of 2024, which improved from 5.2% year-over-year and was consistent sequentially
- The Company generated positive net income of $0.2 million in the second fiscal quarter of 2024, which included a non-cash impact from depreciation of $7.5 million. Net income improved from $(1.6) million in the same period last year and compared to break-even sequentially
- Earnings per fully diluted share were ($0.00) in the second fiscal quarter of 2024, compared to $(0.02) in the same period last year and break-even sequentially
- Cabanalytics Business Data and Insights platform, advertising revenue, and other revenue, which includes management fees, interest income and rental income, was a record $9.0 million for the second fiscal quarter of 2024, compared to $6.7 million in the same period last year, and $7.8 million sequentially, representing increases of 35% and 15% respectively
- For locations operational throughout the second fiscal quarter of 2024 and 2023, same-store sales increased by 4% year-over-year. Given this quarter had two fewer days, same-store sales were (2%) sequentially. Calculated daily, same-store sales ticked slightly higher than the previous quarter. The Company notes that it significantly outperformed total cannabis industry retail sales across the five provinces where it operates, which were (4.4%) sequentially, including the impact of new store growth7
- The Company continued the rollout of ELITE, the first-of-its-kind cannabis paid loyalty program in Canada, with membership surpassing 44,000, representing an increase of 226% year-over-year and 38% since March 15, 2024, which is the fastest pace of onboarding since ELITE was launched in late 2022
- Cash on hand as of April 30, 2024, totaled $34.5 million, an all-time record, compared to $22.5 million as of April 30, 2023, and $28.7 million as of January 31, 2024, representing an increase of 54% year-over-year and 20% sequentially
“I am thrilled to report that in an environment where many cannabis companies, including some of our retail competitors, have been forced to seek bankruptcy protection, our team has been able to deliver positive net income in Q2, while also generating record-breaking free cash flow. In fact, over the past four quarters, we have generated $22.7 million in free cash flow, fueling our strong organic growth. We accomplished this despite Q2 being a seasonally slower quarter with two fewer days, as we tightly managed our G&A while also rapidly growing our store count and increasing our Canadian retail market share to 10.9%.
We remain the highest revenue-generating cannabis company reporting in Canadian dollars with Adjusted EBITDA up 52%, bricks-and-mortar revenue up 11% and consolidated revenue up 5% year-over-year, despite industry sales being down 4% during the same period. All of this has allowed us to end the quarter with a record cash position of $34.5 million. As previously communicated, we set an aggressive target to open 20 to 30 stores by the end of this calendar year. We are already the second largest cannabis retailer globally by store count, and our team is accelerating strategic and accretive M&A, focusing on opportunities of various sizes to further add meaningful size and scale to our store network,” said Raj Grover, Founder and Chief Executive Officer of High Tide.
“On top of achieving net profitability and record free cash flow, our Cabana Club continues to expand and remains the largest bricks-and-mortar loyalty program in Canada with 1.43 million members. I am thrilled to see ELITE memberships again grow at the fastest rate since inception, increasing 226% versus last year and 38% sequentially, demonstrating the popularity of our innovative discount club model.
It is also worth noting that investors seem to be catching onto High Tide’s superior operational performance, something that is reflected in our 12-month stock trajectory and the fact that High Tide is amongst the best-performing Canadian cannabis stocks over this time frame. Our Canadian scale and experience position us well to participate in the German commercial cannabis pilot projects once they are launched. All of this, combined with continuing regulatory reform in the U.S. and Europe, leads me to believe that our ambition to turn High Tide into a global cannabis powerhouse is within reach,” added Mr. Grover.
Second Quarter 2024 – Operational Highlights (Feb 1- Apr 30):
- The Company opened 5 new Canna Cabana locations in Ontario
- For the second time in three years, High Tide was recognized as a top 10 ranked company in the diversified industries sector by the TSX Venture 50
- The Company announced that it has entered into a definitive agreement pursuant to which it has acquired all IP, including trademarks and other assets of the Queen of Bud cannabis and lifestyle brand
- The Company is pleased to announce that it has closed on the remaining interest of NuLeaf Naturals, LLC (“NuLeaf”), not held by High Tide. As described in the Company’s news release dated November 29, 2021, NuLeaf’s members were granted an option to put to High Tide the remaining shares in NuLeaf not held by High Tide (the “Put Option”) at an enterprise value equal to the trailing twelve months of EBITDA multiplied by 7.1. Notice of the intention to exercise the Put Option was delivered by NuLeaf’s members on June 2, 2023, and the transaction was completed on April 5, 2024. High Tide had previously assigned its ownership interest in NuLeaf to it’s subsidiary, High Tide USA, Inc., so the remaining 20% interest was also acquired by High Tide USA, Inc. The aggregate purchase price for the remaining 20% interest in NuLeaf was One Million Five Hundred Seventy-Five Thousand U.S. Dollars ($1,575,000 USD) (the “Purchase Price”). High Tide agreed to pay the Purchase Price to the members in cash in fifteen (15) equal monthly installments of One Hundred and Five Thousand U.S. Dollars ($105,000 USD), beginning on April 7, 2024.
- The Company also announced that on April 20, 2024 ‘4/20’, it generated just under $2 million in total gross revenues across all retail platforms, representing a 35% increase from the previous Saturday. The Company’s Canadian bricks-and-mortar stores reported a 30% increase, while sales across its e-commerce platforms (Grasscity.com, Smokecartel.com, Dailyhighclub.com, Dankstop.com, Nuleafnaturals.com, FABCBD.com, BlessedCBD.co.uk, and BlessedCBD.de) reported an increase of 119% over the previous Saturday
- Various Executives of the Company participated in the International Cannabis Business Conference in Berlin, Germany and the Benzinga Capital Conference in Hollywood, Florida
Subsequent Events (May 1 – present):
- The Company opened an additional 4 Canna Cabana locations in Ontario since April 30, 2024
- The Company grew its World Vision sponsorship support to 344 children internationally after committing to sponsoring two additional children for every new store that opens in Canada
- On May 1, 2024, the Company announced the appointment of Mayank Mahajan to the role of Chief Financial Officer
- As of June 13, 2024, memberships in the Cabana Club loyalty program increased to over 1.43 million, up from 1,040,000 members as of June 14, 2023, and 1.32 million as of March 15, 2024, representing increases of 38% and 8%, respectively
- As of June 13, 2024, ELITE memberships have grown to over 44,000 members, up from 32,000 as of March 15, 2024, representing increases of 226% year-over-year and 38% sequentially
- Fastendr retail kiosks have been installed in 130 Canna Cabana locations, up from 120 in the previous quarter, with more installations underway
- The Company has entered into a binding subscription agreement with arm’s length institutional credit providers for $15 million in debt financing. Pursuant to the terms of the subscription agreements, the funds will be drawn in two tranches: (i) $10 million at closing, expected on or before June 30, 2024 and (ii) $5 million in November 2024
- The Company sold 1,055,900 common shares to one institutional investor through the ATM program for gross proceeds in the amount of $3.2 million
by Grow Up Conference | Jun 14, 2024 | Cannabis News Wire, Media Partners
- INM is advancing INM-089 targeting age-related macular degeneration and INM-901 targeting Alzheimer’s disease
- The company recently posted positive results for INM-089 demonstrating significant functional and pathological improvements in an AMD disease model
- Recent preclinical data for INM-901 displayed positive pharmacological effects for treating Alzheimer’s disease
- INM posted a business update for Q3-2024 reporting a closing cash position of US$7.9 million and revenue growth for subsidiary BayMedica, a supplier of rare cannabinoids as ingredients
InMed Pharmaceuticals (NASDAQ: INM), a is a clinical stage pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates targeting the CB1/CB2 receptors. InMed’s pipeline consists of three separate programs in the treatment of Alzheimer’s, ocular and dermatological indications. The company recently released several critical updates regarding its INM-089 therapy treating dry Age-related Macular Degeneration (“AMD”) and its INM-901 small molecule drug candidate targeting Alzheimer’s disease (“AD”).
Recent preclinical data for INM-089 demonstrated significant functional and pathological improvements in an AMD disease model, indicating promising neuroprotective effects in the back of the eye. “We are very excited with the data from recent preclinical studies demonstrating both significant functional and pathological improvements from INM-089 in the AMD model,” said Dr. Eric Hsu, SVP of Preclinical Research and Development at INM (https://cnw.fm/IzLJF).
“While a few treatment options are currently available, their efficacy is limited and may be associated with several undesirable side effects. We see an opportunity for INM-089 to slow the progression and to fill a significant gap in the treatment of this chronic disease.”
INM-901 is currently being investigated for its potential in treating Alzheimer’s disease. Recent preclinical data showcased its positive pharmacological effects, demonstrating reduced neuroinflammation and improved neuronal function, among other promising outcomes. The small molecule drug, acting as a preferential signaling ligand for CB1/CB2, delivers improved retinal pigment epithelium integrity, neuroprotection, and photoreceptor improvement in an in vivo preclinical disease model.
“The recent results demonstrating pharmacological effects in in vivo disease models continue to validate INM-901 as a potential treatment of AD,” said Dr. Eric Hsu (https://cnw.fm/VsMBZ). “There continues to be a major unmet medical need for this multi-factorial disease and differentiated therapeutic mechanisms may play an important role. We believe the development of INM-901 may address several pathological factors including neuroinflammation, neuroprotection and neuritogenesis.”
InMed additionally provided a business update for the third quarter of fiscal year 2024, highlighting progress in its pharmaceutical pipeline and commercial business growth (https://cnw.fm/H62nJ). Highlights included a closing cash position of US$7.9 million and strong revenue growth for its subsidiary BayMedica, a B2B supplier of rare cannabinoids as ingredients to the health and wellness sector.
InMed Pharmaceuticals Inc. stands at the forefront of cannabinoid research, pioneering advancements in the development of proprietary small molecule drug candidates targeting different specific receptors. With an experienced management team leveraging expertise in pharmaceutical research, manufacturing, and commercialization, the company is advancing novel therapies to address unmet medical needs across a spectrum of diseases and disorders.
For more information, visit the company’s website at www.InMedPharma.com.
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by Grow Up Conference | Jun 13, 2024 | Media Partners, Stratcann
High Tide Inc. reports a 5% year-over-year increase in revenue and a 175% year-over-year increase in revenue in its most recent quarterly report.
The company behind Canada’s largest non-franchised retail cannabis chain brought in $124.3 million in revenue in the three months ending April 30, 2024, up from $118.1 million in the same period in 2023, but down slightly from the $128.1 million in revenue from the first three months of 2024.
High Tide’s net income for the second quarter of 2024 was $171,000, an improvement from a $5,000 loss in the previous quarter and a $1.6 million loss in Q2 2023. The Company is free cash flow positive for the fourth consecutive quarter, ending with a free cash flow of $9.4 million.
High Tide attributes its 5% year-over-year growth in revenue largely to the continued increase in cannabis stores under its control, as well as growth in same-store sales. This growth is partially offset by the increase/decrease in data analytics and e-commerce revenues. The company operated 168 cannabis stores in the second quarter of 2024, primarily under its Canna Cabana brand.
Revenue from sales of cannabis products in Q2 2024 was $108 million, another $7.3 million was from consumption accessories, and just under $9 million was from its data analytics service “Cabanalytics”, as well as advertising and “other revenue.”
The Cabanalytics Business Data and Insights Platform is billed as giving subscribers access to High Tide’s monthly report of anonymized consumer purchase data with a stated goal of helping retailers with “forecasting and planning their future product decisions and implementing appropriate marketing initiatives.”
High Tide’s CEO, Raj Grover, says the company still holds its position as the highest revenue-generating cannabis company reporting in Canadian dollars.
“I am thrilled to report that in an environment where many cannabis companies, including some of our retail competitors, have been forced to seek bankruptcy protection, our team has been able to deliver positive net income in Q2, while also generating record-breaking free cash flow. In fact, over the past four quarters, we have generated $22.7 million in free cash flow, fueling our strong organic growth. We accomplished this despite Q2 being a seasonally slower quarter with two fewer days, as we tightly managed our G&A while also rapidly growing our store count and increasing our Canadian retail market share to 10.9%.”
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by Grow Up Conference | Jun 13, 2024 | Media Partners, Stratcann
A Nova Scotia court has rejected a claim that the members of a First Nation can operate cannabis stores outside of provincial and federal cannabis regulations.
The defendants in the case argued that provincial regulations for cannabis stores in Nova Scotia do not apply to businesses operating within the territory of the Millbrook First Nation and that they do not need to pay provincial or federal duties on the products sold.
In a provincial court ruling from June 7, a judge said the defendant’s case did not make an effective argument for the existence of aboriginal and/or Treaty rights attached to their cannabis store operations, siding with the Crown, who argued the case was “frivolous” and a waste of the court’s time.
The defendant’s lawyer argued that the First Nation had a historical connection to cannabis and cannabis trade prior to contact with Europeans, that the development of federal and provincial cannabis regulations did not include consultation with the First Nation, and that Millbrook First Nation is on unceded territory.
The judge rejected the claim that a treaty right to sell cannabis exists and rejected claims that there is evidence the First Nation had engaged in the cultivation or selling of cannabis prior to contact with Europeans.
However, the judge also said they welcome a “stronger” argument along the same lines.
The matter cannot proceed on this foundation. I welcome a stronger one,” wrote Associate Chief Judge Ronda van der Hoek in her decision.
“The Court cannot allow the matter to proceed on such a foundation given its role to protect scarce judicial resources and in light of the Crown meeting the test to summarily dismiss, in the words of the Supreme Court of Canada, “manifestly frivolous” applications. This decision is not taken lightly. Instead, it is clear that court time allotted to such an exercise will surely result in Jordan stays being granted in other matters scheduled to proceed in this court. It cannot be understated that decisions affirming and defining, or denying and restricting, aboriginal and Treaty rights are significant for the communities who advance them and Nova Scotians. The Court is aware that we are all Treaty people, but how the Treaties are interpreted must be based on a foundation that warrants consideration. At this time, that foundation has not been established for cannabis sales outside the lawful regime, and the existing regime applies to all Nova Scotians.”
In a similar ruling posted on the same day by Judge van der Hoek, she also rejected efforts to have charges thrown out related to the three raids of unlicensed cannabis stores in the province in 2021.
The defendants in the case heard in a court in Truro, Nova Scotia, attempted to make several arguments intending to have the charges dismissed, including claiming that the Crown could not prove that the cannabis was for sale or that one of the men arrested was not actually working at the store.
The judge rejected these arguments, noting evidence showing the cannabis products were listed as for sale, and the person in question was found behind the counter of the store when police arrived.
One defendant also argued that the Crown had failed to prove the elements of the offences or are subject to the Kineapple principle, which prevents multiple convictions for a single criminal matter. The judge said they were willing to hear that argument at a later date.
Another related constitutional challenge by a band councillor from Millbrook First Nation, Chris Googoo, who has claimed a similar treaty right to sell cannabis, had his case dismissed earlier this year after the court found there was not enough evidence to proceed. Since the case was dismissed, the charter challenge did not proceed.
Nova Scotia RCMP officers raided Chris Googoo’s High Grade Smoke Shop, which sits on reserve land in Cole Harbour, NS, in December 2020 as part of a series of raids on several unlicensed cannabis dispensaries operating in the area. Googoo was arrested and charged with illegal possession and distribution of cannabis.
Googoo—who was represented by long-time cannabis rights lawyer Jack Lloyd—staged the constitutional challenge under section 35 of the Constitution Act, which protects Indigenous treaty rights in Canada. Specifically, Googoo is referring to the 1752 Peace and Friendship Treaty, which promises the Mi’kmaw “free liberty to bring to sale to Halifax or any other settlement within this province skins, feathers, fowl, fish or any other thing they shall have to sell.”
“Exercising our inherent treaty rights is something that all of our people should be doing freely, and not have to be harassed by any bodies of government,” said Googoo at a rally of supporters outside a Nova Scotia provincial courthouse in 2022, where he appeared to set trial dates.
Googoo was being backed by former president of the National Indian Brotherhood (precursor to the Assembly of First Nations) and one of the authors of section 35, Chief Del Riley, who has argued that the section grants Indigenous communities the authority to write their own cannabis regulation in parallel to federal and provincial law and to sell cannabis on reserve land. “You’re actually in a hell of a good position here,” he told members of the Millbrook community in April.
However, in 2019 Millbrook First Nations Chief Bob Gloade also said that such businesses are not supported by treaty rights.
“There is no treaty right protecting them in regards to selling, growing or distribution of cannabis whatsoever,” Gloade said. “It’s not a treaty or an aboriginal right because it does not state that anywhere. Our treaty rights basically focus around hunting and gathering not growing and distribution,” he said. “Individuals feel that it is a right and they’re extending it beyond the meaning of how the treaties are laid out in black and white and it puts us in a difficult situation.”
Since then, the Chief has changed his tune.
“Since that time, council has debated and discussed how to advance a cannabis strategy that is respectful of, and a benefit to, all community members, carried out in a way that prioritizes community sovereignty, safety, and well-being of everyone,” Gloade said in 2021.
“This is consistent with our inherent right to govern and our fiduciary duty to exercise jurisdiction over matters such as the community’s health and safety as a whole,” he said. “We continue to discuss the development of a cannabis regime and measures necessary for the Millbrook First Nation residents’ safety and enjoyment of life.”
Last year, the Assembly of First Nations called on federal politicians to “recognize First Nations jurisdiction over cannabis and remove regulatory barriers that exclude First Nations from the marketplace.” Thus far, federal and provincial governments have held that Indigenous communities can harmonize their regulations with Canadian law, and governments have attempted (to varying degrees of success) to help with that process.
Millbrook First Nation is one that finds itself in just such a position, and they have had a rocky relationship with the legal cannabis industry. Initially hopeful that legalization would be a source of economic opportunity for the community, in 2018 the band council invested $5 million in licensed producer Zenabis’ growing facility in Stellarton, NS, which opened in 2019 but was decommissioned in 2022, less than three years later. Financial statements show that Millbrook had lost more than $4.2 million on that investment, amidst a broader market downturn for public cannabis companies.
In 2022, Millbrook First Nation published a report following a community consultation exploring the idea of sovereign cannabis regulations, concluding that there was significant community support for “developing Millbrook laws and regulations.” A group called the Mi’kmaq Cannabis Association has also formed in the wake of the raids and has argued that “cannabis can be regulated informally by the customs and conventions of the Mi’kmaq people.”
An almost identical case in Cape Breton, where an Indigenous man was arrested for operating a dispensary on reserve land, was dropped by the crown suddenly in 2022, averting a planned constitutional challenge. “I’m kind of upset about it,” said defendant Albert Marshall. “I would have liked to have gone all the way to the end of it—right to the Supreme Court—to justify our inherent right to trade medicine, to trade plants.”
An Indigenous man in BC sued the provincial government in 2023, arguing that both federal and provincial cannabis laws ignore First Nations’ and Indigenous peoples’ jurisdiction.
Ongoing issue of jurisdictional authority
The issue of jurisdiction around cannabis laws is contentious in Canada as it relates to First Nations and Indigenous authorities. Canada’s Cannabis Act and Regulations provide the authority to regulate the sale of cannabis to provinces and territories. Many provinces, including BC, along with the federal government, have said that their own respective cannabis regulations are laws of general application, meaning they apply to all areas in those jurisdictions, including Indigenous land.
In 2020, BC’s Minister of Public Safety and Solicitor General, Mike Farnworth, said the province does not recognize such sovereignty in regard to federal and provincial cannabis regulations, but it is hesitant to enforce the law on First Nations territory out of fear of a court challenge.
Meanwhile, the New Brunswick government claims it is powerless to enforce its cannabis laws on First Nations land.
In 2023, the federal Senate Committee on Indigenous Peoples called for jurisdiction over cannabis possession, sale, and distribution in Canada.
by Grow Up Conference | Jun 13, 2024 | Cannabis News Wire, Media Partners
A group of senators from the Democratic Party is urging a significant committee to ensure small cannabis entities have equitable access to federal Small Business Administration (SBA) lending programs and development resources available to other industries.
In an April letter to the leaders of the Appropriations subcommittee, the senators urged that the FY 2025 FSGG spending measure include provisions to stop the SBA from rejecting loan applications from small cannabis entities operating legally in states that have approved marijuana use and sales.
Senator Jacky Rosen led the letter, asking the subcommittee leaders to add clauses to the spending bill that would prevent the SBA from excluding state-legal marijuana businesses from its entrepreneurial development initiatives. Other senators who signed the letter alongside Rosen include Cory Booker, Jeff Merkley, Ron Wyden, Tammy Duckworth, Martin Heinrich, John Hickenlooper, Ed Markey, Michael Bennett and Alex Padilla.
The senators highlighted the change in public attitude toward cannabis reform, pointing out that markets which bring in billions of dollars in tax revenue had resulted from the legalization of cannabis in the majority of states. The senators also noted that most banks are hesitant to work with legal marijuana entities because of federal law conflicts, compelling these businesses to operate mainly with cash. This situation poses public safety risks. The lawmakers argued that SBA loan initiatives could bridge the gap left by private-sector reluctance, providing vital capital for entrepreneurs, including women, minorities and veterans.
This marks at least the third instance where Rosen has led a similar request to the Appropriations subcommittee, but the proposed language has not yet been included in any spending measure.
Senate leadership has been discussing a bipartisan measure to safeguard financial institutions working with legal marijuana entities. However, the progress of this bill remains uncertain, particularly due to resistance from key Republican members such as Mitch McConnell, the Senate minority leader.
Rosen has previously expressed a desire to amend the SAFER Banking Act to allow marijuana businesses to access SBA programs. Additionally, she has advocated for the inclusion of language in a newly introduced federal cannabis legalization measure that proposes an SBA pilot initiative. The initiative would provide intermediary lending, offering direct loans to qualified intermediaries, who would then lend to startups and businesses owned by those affected by the drug war and those from economically and socially disadvantaged backgrounds.
In a news release regarding the letter and the other efforts she recently spearheaded, Rosen stressed the value of small entities to Nevada’s economy. She emphasized her resolve to slash bureaucratic obstacles to facilitate such businesses’ access to financing and assist them obtain the federal support they require for expansion and prosperity.
Industry actors such as Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) would be glad to see that legitimate marijuana companies which need SBA services can access them just as businesses in other industries can.
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