Fewer research analysts covering cannabis underscores industry woes
Fewer research analysts are covering the U.S. cannabis industry, reports MJ Biz Daily.
The publication notes that experts are saying this reflects the challenging economic headwinds facing the industry, including high taxes, high interest rates, rock-bottom stock prices and the slow pace of federal reform.
Additionally, cannabis companies are increasingly turning to debt financing rather than equity raises, which MJ Biz Daily highlights, means there’s a smaller audience for research.
Jesse Redmond, the managing director of the cannabis sector and head of research at Florida-based Water Tower Research, told the publication that the situation “speaks to the unhealthy state of our industry”.
DEA-licensed cannabis producer Bright Green closes $3.5m private placement
Benzinga reports that Bright Green Corporation has announced the closing of its previously announced private placement of common stock and warrants on Wednesday afternoon.
The company is one of the few selected by the U.S. government and DEA to grow, manufacture and legally sell cannabis and cannabis-related products for research.
It sold 3,684,210 shares of common stock and warrants to purchase 3,684,210 shares of common stock, at a purchase price of $0.95 per share and accompanying warrant.
According to the publication, gross proceeds from the private placement are expected to be approximately USD$3.5 million before the agent’s fees and other expenses.
Minnesota officials seek marijuana licensing contractor to prepare for legalization even before governor signs reform bill
Minnesota officials are already soliciting vendors to help build a licensing system for recreational marijuana businesses, reports Marijuana Moment, highlighting that this is taking place before the governor has officially signed the legalization bill.
In a request for proposal (FRP), an estimated timeline for licensing implementation was also included, which is the processing of license applications expected to start in May 2024 and retail sales anticipated to begin January 1, 2025.
The state Department of Information Technology Services (MNIT) said in the RFP: “Minnesota is becoming the 23rd state in the nation to legalize cannabis use for adults 21 and older.
“The proposed legislation creates the framework for adult-use cannabis in Minnesota and establishes a new state agency—the Office of Cannabis Management—that will regulate cannabis (including for the adult-use market, the Medical Cannabis Program, and for low-potency hemp edibles) and issue licenses and develop regulations outlining how and when businesses can participate in the industry.”