PROMISES PROMISES
One year in, Biden hasn’t kept most of his cannabis campaign promises
Yesterday marked the one year anniversary of President Joe Biden’s term in office, and so far, he hasn’t made good on the majority of his cannabis campaign promises, writes Marijuana Moment.
In the last year, Biden still has not:
- Federally decriminalized cannabis
- Freed thousands still serving sentences in federal prisons for non-violent cannabis convictions
- Rescheduled cannabis
But he has:
- Allowed states to implement regionally appropriate reform
- Signed an infrastructure bill designed in part to promote cannabis research
The takeaway
“This inaction on modest cannabis policy reforms over the past year is inexcusable and is a betrayal of the people that put the president in office,” said NORML’s Morgan Fox.
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HINDSIGHT
The inside story on MedMen co-founder Adam Bierman
Once one of the best-known cannabis retailers moving into the space, California-based MedMen has lost 95% of its market cap since going public in 2018, reports Insider.
In his first interview since being forced out in 2020, Bierman shared what lessons he learned the hard way as a warning to fellow entrepreneurs. He said:
- The failed $680 million acquisition of Pharmacann can be attributed to leaving enough time to jump through the federal government’s strict antitrust hoops and an anti-cannabis attorney general at the DOJ
- Despite being cleared, a series of lawsuits from investors and former execs left lasting damage to the company’s reputation
- He regrets securing investments from certain parties like Omar Mangalji, who ended up suing MedMen
- Spending millions on a Spike Jonze-directed ad for the SuperBowl that never aired was a mistake
The takeaway
“I can’t go back and say, ‘I wish I had done this,'” said Bierman, who is now part owner of Coastal. “Whoever I was on that day, that was the person who both fucked up what they fucked up and accomplished what they accomplished.”
CUTTING TO GROW
HEXO plans to cut $175 million in costs
After making three major acquisitions and ousting its founder, Ottawa-based HEXO has big plans to cut costs to raise $175 million to pay off its acquisition of Hamilton’s Redecan, reports BayStreet.
The plan includes:
- reduce expenses by 30% by the end of the fiscal 2023 year
- cancel consulting contracts
- moving to a new technology platform
- “right-sizing” the workforce
- “optimizing” assets, like moving vape and distillate production to Niagara Falls
- divest assets, such as 25% of its Belleville, Ontario facility
The takeaway
HEXO raised $360 million in a debt financing deal with New Jersey hedge fund High Trail Capital. It’s now under pressure to meet the terms of the deal.
