C4 Distribution shuts down after failing to raise money
A memo signed by C4 CEO Eric Spitz says that due to lack of financing, California’s C4 cannabis company is ceasing operations, reports Insider.
Money is still owed to two firms, Alvarez & Marsal and Lampert Debt Advisors. Employees have been furloughed, the office has been shuttered and the company has begun selling off its assets. “This process has been arduous and taxing, and we still owe significantly more than we have left to collect,” the memo said.
Raising funds is becoming increasingly difficult for California’s cannabis industry, where the illicit market has grown, retail has shrunk and advocates are pushing for fairer taxation rates. “This could be the great extinction event for California operators,” warned Poseidon Asset Management’s Emily Paxhia.
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Ascend Wellness files lawsuit against MedMen
After its investment agreement was terminated, MSO Ascend Wellness has commenced legal proceedings against MedMen in New York, according to a press release.
Ascend operates in Illinois, Michigan, Ohio, Massachusetts and New Jersey. Its acquisition of 86.7% of MedMen’s New York business was announced last February, and regulators approved the deal in December.
“AWH is seeking an order compelling specific performance of the transactions contemplated by the Investment Agreement among AWH and MedMen,” reads the release. “In addition, AWH has made an application for a preliminary injunction and temporary restraining order to maintain the status quo between the parties and to prevent any actions by the MedMen parties that would result in additional encumbrances on the equity or assets of MedMen NY, Inc.”
UK medical cannabis bill doomed to fail
The MP sponsoring the UK’s Medical Cannabis Access Bill in the House of Commons on Friday said it’s unlikely to succeed because of a lack of support, reports BusinessCann.
“It almost definitely won’t receive any further parliamentary time or be able to progress any further,” said a senior aide to Jeff Smith, Labour MP for Manchester Wythenshawe. “Unfortunately the government was not forthcoming with any proposals that they’d be able to support, and we were not able to convince them to support the ones outlined in Jeff’s bill.”
Those who don’t support the bill cite a lack of clinical evidence supporting the efficacy of medical cannabis. Advocates, such as Seed Our Future’s Guy Coxall, disagree: “There is overwhelming evidence that whole plant cannabis is both relatively safe and has great efficacy for the prevention and treatment of a wide range of diseases,” he said.
Medical cannabis sales growth falters in Germany
Based on data from the German National Association of Statutory Health Insurance Funds, sales of medical cannabis in Germany have “stagnated,” reports Prohibition Partners. Sales evened out between Q3 in 2020 and Q3 in 2021.
There are a couple of reasons why growth has stalled:
- Doctors aren’t comfortable with prescribing cannabis
- Lack of coverage by insurers
There’s hope that incoming adult-use legalization will increase access. “Advocates of medical cannabis are hopeful that whichever laws are passed to loosen control on cannabis in Germany, patients will benefit from the removal of some of the outdated legal barriers to distribution and access of these medicines.”