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Trulieve’s stock drop attributed to industries “largest cannabis M&A deal”


Trulieve is still ‘digesting’ last year’s $2.1 billion acquisition: CEO

Kim Rivers, the CEO of Florida-based Trulieve, told Yahoo Finance that the company’s $32 million net loss this past quarter and 42.8% year-to-date drop in its stock can be attributed in part to its acquisition of Harvest Health and Recreation.

“We are absorbing and digesting a very large transaction that we closed October 1,” she said, referring to last year’s $2.1 billion acquisition, which was the largest cannabis M&A deal the industry has ever seen.

“So we had 55% improvement quarter-over-quarter on that loss number, and that loss was attributable to one-time and non-recurring charges, including some synergies with the disposition of inefficient cultivation assets, as well as the disposal of a duplicative location,” she said. “That’s going to clear throughout the year and we’ll get back.”

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Regulator coalition advises Congress on cannabis banking

It stopped short of endorsing the SAFE Banking Act, but the Cannabis Regulators Association advised Congress on how the current lack of access to financial services negatively impacts both stakeholders and regulators, per Marijuana Moment.

The coalition, which represents 40 US states and territories, outlined three main areas:

  • The inability to access basic banking and depository services by the industry overall
  • The inability for minority-owned and small businesses to operate efficiently
  • Public safety and security

“…the lack of safe banking and financial services for the cannabis industry and for those indirectly involved in cannabis marketplaces has become a dire public safety issue,” they wrote. “Virtually all our member states and territories have been negatively impacted by the lack of available financial and banking services for cannabis businesses and those working with the cannabis industry.”


Rhode Island’s legalization bill reserves licences for worker-owned co-ops

In what’s likely a first for cannabis policy, Rhode Island’s recently revised cannabis legalization bill would reserve 25% of retail licences for worker-owned co-ops and 25% for social equity applicants, reports Marijuana Moment.

More highlights:

  • Marijuana possession convictions for amounts that will be legal will be automatically expunged by July of 2024; cases would be expedited for other petitioners
  • State tax on adult-use sales would be 7%; excise taxes would be 10% and municipalities which host cannabis businesses would add a 3% tax
  • 33 stores would be licensed at first, with nine reserved for existing medical dispensaries (at a $125,000 fee for the privilege)
  • No company can have more than once licence, but investors can invest in multiple entities

The legislation still needs to be debated in two committees before heading to votes next week in the state House and Senate.


Yooma reinstated on the Aquis after reporting its Q4 results

Headquartered in Toronto, Yooma Wellness is still waiting for the Canadian Securities Exchange to list it again, but it has been reinstated on the Aquis after reporting its Q4 2021 results two weeks late, per BusinessCann.

The company’s share price is at an “all-time low,” and reported a $33.35 million loss after making six acquisitions in 2021. As a result, the company will undergo a strategic review by Canaccord Genuity to assess its options.

“We do not believe our current share price is a fair reflection of what the company has achieved or its potential for further growth,” said chairman Lorne Abon. “Depressed share prices make additional capital raising and further acquisitions difficult in the short-term, as they would be unfairly dilutive to our shareholders. They also make it difficult to move to other regulated stock exchanges and raise the much-needed growth capital to support our brands.”

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