StaffThe Daily Hit is a recap of the top financial news stories for July 6, 2023.
On the Site
New Cookies Lawsuit Alleges Fraud, Breach of Contract, Other Misdeeds
Global cannabis brand Cookies has been hit with yet another breach of contract lawsuit from a business partner alleging theft and fraud. The new legal action directly piggybacks on two earlier lawsuits that alleged Cookies routinely uses threats of violence and retribution in business dealings. Read more here.
Parallel’s Investor Suit Against Wrigley Allowed to Move Forward
The investor case against Parallel Cannabis’ former CEO William “Beau” Wrigley Jr. and other executives will move forward after a Florida Judge ruled that the investors provided enough evidence of fraud. The case claims that Wrigley and the other executives misled them on the company’s debt and about how their investments would be used. Read more here.
Some California Cannabis Operators Could Feel the Heat from New Tax Law
Santa Barbara County’s Board of Supervisors is pursuing a strict policy to address tax delinquency within California’s cannabis industry. In a recent decision, the board gave initial approval to a law that could shutter any cannabis business in the county if it fails to pay taxes more than 30 days past the due date. Read more here.
Michigan Edibles Maker Fined $100k, Loses Medical Cannabis License
Longtime Michigan edibles maker Sky Labs has been fined $100,000 and had its medical processing permit revoked by the state Cannabis Regulatory Agency after 20 milligrams of its mislabeled gummies were consumed by a four-year-old child. Read more here.
Ending 280E Could be Bigger than SAFE or TSX Uplisting
Many believed that the catalyst to turn things around for the cannabis industry would be the passage of banking legislation like the SAFE Act. However, it could be something as simple as 280e. But as with most things in cannabis, even 280e isn’t simple. Read more here.
In Other News
Cronos Group
Cronos Group (Nasdaq: CRON), the Canadian cannabis producer backed by cigarette-maker Altria Group (Nasdaq: MO), reportedly is exploring options that include a potential sale after attracting acquisition interest, people familiar with the matter said. Cronos did not provide Reuters with any comment on the situation. Read more here.
Curio Wellness
Days after Maryland legalized recreational cannabis sales, Curio Wellness has revealed a $4.1 million fund-raise from undisclosed investors, according to Crunchbase. The Lutherville-Timonium headquartered firm raised $21.4 million in 2021, besides securing a $26 million mortgage deal to expand its growing facility from Severn Savings Bank. Read more here.
Germany
Germany’s Health Ministry has unveiled a draft bill to legalize marijuana, submitting it to state officials and the public for review. The legislation would allow adults to cultivate a limited number of cannabis plants for personal use and set rules for the creation of social clubs where they could obtain marijuana. Officials are also planning to introduce a complementary second measure that would establish pilot programs for commercial sales in cities throughout the country. Read more here.
