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Every canna-stock shareholder when the stock price craters...
Ford Fiesta: U.S. multi-state operator iAnthus Capital Holdings saw its CEO Hadley Ford resign following revelations of over $150,000 in undisclosed personal loans. Ford apparently took a zero-interest loan from Gotham Green Partners after closing a convertible note deal with them in December. While the special committee investigating didn’t think the terms of the loan were impacted, they concluded the lack of disclosure was a breach, and President/co-founder Randy Maslow is stepping in as interim CEO.
Why It Matters: Things are mighty funky over at iAnthus, which is refusing to pay certain interest payments, experienced a temporary halt in trading, and continues to review “strategic alternatives” (most often, coded business jargon for selling some/all of a business). What’s next for them is hard to say, but they’ll face some lawsuits in the meantime. With stock prices plummeting across the industry, pot investor class action lawsuits have doubled in the past year, as equity investors who’ve been left holding the bag hope for management misdeeds they can recoup against. You tend to see these types of lawsuits in any industry when stocks get pummelled, but, when so many canna-stocks are kinda just vehicles for enriching management, it’s not surprising that some cases might actually have legs. 

Odd Couple: High Times Holding Corporation is acquiring up to 13 dispensaries from Harvest Health and Recreation, marking the real beginning of the pivot into retail they announced at the start of the year. The deal represents $80 million, with up to $12.5 million in cash and the remainder in High Times stock, making Harvest a major shareholder in High Times, should the long-planned stock offering ever transact. In line with their strategy, High Times has also initiated a few other acquisitions as of late, including two other dispensaries and a cultivator
Why It Matters: All major players are refocusing on core markets (see the Cresco news below), and Harvest is clearly deciding that California isn’t a focus. It also makes Harvest’s Have A Heart acquisition... more puzzling, as many of their California licenses came through that deal. With this sale and the shuttering of Iowa operations, it’ll really only be Washington locations that remain. Taking primarily stock in High Times is… iffy too. Their historical core businesses (events and print advertising) are dead in the water with COVID-19, making their ongoing prospects highly dependent on success here. Altogether, it’s peculiar and speaks to the desperate situations faced by High Times and Harvest. Adversity makes for strange bedfellows… and stranger deals.

At The Heart Of The Green Rush: Humboldt County in California has long thrived as the heart of American cannabis. But, as the legalization and commercialization of cannabis advances, can the setting of Murder Mountain cross over to become the standard-bearer of craft cannabis?  Very Scarce founder Steve Weiner shares his thoughts on Humboldt’s heritage and craft cannabis’ future in this week's Guest Perspective.

Quick Hits

Product of the Week: ALT
Build Your Own Beverage: Flavorless, odorless, colorless, fast-acting - ALT (short for Advanced Liquid Technology) distinguishes from the competition via NASA-inspired packaging. Available in 5 or 10 mg vials, ALT aims for “a self-improvement supplement to elevate the senses” via any beverage of your choice.

Research Rips

👍 Cannabinoids May Reduce Pain And Spasticity In People With Spinal Injuries
👍 Some High CBD Sativas Might Be Useful As As An Adjunct Therapy For COVID-19 
👍 Endocannabinoid Targets Offer Advantages For Patients With Multiple Medical Disorders
👍 Cannabis Might Enable Lower Opioid Dosage For Non-Cancer Chronic Pain
👎 Cannabis Gatherings Associated With Increased ER Visits For Mental Health/Substance Use


State Legalization Watch: 0/5  

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