The Daily Hit is a recap of the top financial news stories for Thursday, August 15, 2024.

On the Site

New York ruling could threaten crackdown on unlicensed marijuana sales

A court ruled that a convenience store in Queens would be allowed to reopen due to improper delivery of a summons under Operation Padlock.

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Georgia low-THC medical marijuana program growing by 1,000 patients per month

Only around a dozen dispensaries are operational in Georgia.

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Lykos to cut 75% of staff, reorganize in wake of FDA defeat

Remaining staff will focus on efforts to get FDA approval for the MDMA therapy.

Read more here.

Blüm Holdings posts second-quarter profit, driven by dispensary sale

The company said it’s focused on making operations more efficient and expanding its retail footprint.

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Gold Flora enjoys rising revenue from last year’s TPCO deal

Still, sales fell slightly from the first quarter and the company remains a going concern.

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More earnings:

In Other News

Medcana

SFWJ, which does business as Medcana, a holding company focused in the cannabis and agricultural technology sectors, announce that all of the convertible debt on the company’s calance sheet will be eliminated by the end of the third quarter.

Read more here.

Germany

Four and a half months after the federal law came into effect, it remains unclear who in Berlin will decide on applications from so-called “social clubs” that want to grow cannabis.

Read more here.

Dallas

The Dallas City Council on Wednesday voted to put a marijuana decriminalization measure on the ballot for the November election, continuing a trend by Texas activists to reform cannabis policy at the local level.

Read more here.

Blüm Holdings Inc. (OTCQB: BLMH) has taken a major step in its bid to restructure its finances, selling a prized retail dispensary for $24.8 million to slash debt.

The Santa Ana-based company said Tuesday it completed the sale of its Blüm Santa Ana cannabis store to Haven Nectar LLC. The deal marks a milestone in Blüm’s efforts to regain a firmer financial footing after racking up an estimated $90 million in liabilities since August 2022, according to company filings.

The sale retired about $44.5 million in debt for Blüm, reducing its total obligations by more than half, while generating a $34 million gain on the divestiture, the company said. Blüm received $9 million in cash proceeds and $15.84 million in liabilities assumed by the buyer.

“The sale of our Santa Ana store is a landmark achievement for Blüm Holdings, not only because of the financial gain but because it symbolizes the end of a challenging era,” Blüm CEO Sabas Carrillo said in a statement.

Carrillo said the dispensary staff “created a solid foundation for future success,” but Blüm’s remaining teams are “poised to compete and thrive in a revitalized company” after shedding the debt burden.

Blüm, which operates cannabis brands such as Korova across California, has been mired in litigation and financial troubles. It agreed to license the Blüm name to the Santa Ana store’s new owners for up to 18 months as part of the deal.

The sale continues a restructuring that Blüm said has helped slash around $90 million in total liabilities from its balance sheet over the past 21 months. Cannabis companies have faced heightened financial pressures amid price compression, tax burdens, and competition from still-thriving illicit markets.