A tax hike on marijuana products requested by Ohio Gov. Mike DeWine was not included in a state budget plan released this week, possibly saving state cannabis companies from having to raise prices at dispensaries.

Republican leaders at the state capitol insisted this week they would avoid raising taxes whenever possible, including on the newly established recreational cannabis trade, the Ohio Capital Journal reported.

“There are no tax increases in this budget,” Rep. Brian Stewart, the chairman of the House Finance Committee, told the Journal. “We are not raising taxes on sports betting, marijuana or tobacco products.”

Stewart was responding to a specific budget request from DeWine that called for raising cannabis tax rates from 10% to 20% to help pay for “local jail improvements, law enforcement, poison control, assistance in having old cannabis-related convictions expunged, and addiction services.”

Instead, Ohio lawmakers made clear this week they are not DeWine’s to command and released a far different fiscal agenda than the state’s chief executive requested, the Journal reported. DeWine still has line-item veto power, so changes may still be ahead.

Lawmakers have until July to approve a new budget plan.

DeWine’s request appears to be part of a small but significant national trend of states relying increasingly on marijuana taxes to fund state coffers, NORML noted in a blog post on Thursday. California, Maryland, Michigan and New Jersey also have either pending recreational cannabis tax hikes or legislative proposals to do so, the marijuana activist organization pointed out.

City View Green Holdings (CSE: CVGR) (OTC Pink: CVGRF) recently warned investors it was considering a pivot out of cannabis and becoming an investment issuer. Now it’s making that official.

The company has proposed to spin out its wholly owned subsidiary, 2590672 Ontario Inc. Following the spin-out transaction, the company said it would remain a reporting issuer to complete a reverse take-over transaction with a business that has yet to be identified.

City View also said that the spin-out would allow shareholders to realize the expected growth and returns from the cannabis sector through direct ownership in the “SubCo” – or the spin-out property – and that it was expected to file with the Canadian Securities Exchange to list the shares there. That exchange ratio has yet to be determined.

Target acquisition

As part of the proposed plan, City View told the market that it has entered into an agreement of principle with an arm’s length party referred to as the “Target.” City View will buy an ownership interest in said Target in exchange for the issuance of shares in the capital of City View.

While it didn’t name the company, City View did say that the Target is a technology company with a primary focus on assisting online creators and influencers to monetize their YouTube, Twitch and X livestreams by matching the individual creators and influencers with brands.

“The creators and influencers will use the proprietary live broadcast software to integrate the ads into their livestreams. The Target, using AI, will be able to track all interactions by the viewers with the ads, bill the advertisers accordingly and remit payment to the creators and influencers,” the company said in its statement.

Despite the lengthy description, City View acknowledged it is still doing its due diligence on the company and has signed no definitive agreement.

The proposed plan is also dependent upon a shareholder vote approving the move.

Standard Wellness Holdings LLC secured a $14 million senior secured credit facility from Advanced Flower Capital (NASDAQ: AFCG), the companies announced Thursday.

The vertically integrated cannabis company will use the funding to refinance existing debt, including full repayment of its debt facility with Focus Growth Capital Partners and early repayment of a seller note with Columbia Care, according to the announcement. That debt was incurred when Standard Wellness acquired the Cannabist dispensary in Springville, Utah.

Additionally, the funds will fully finance the acquisition of a dispensary license in St. Louis, though that acquisition remains subject to regulatory approval.

The new credit facility bears an interest rate of 12.5% with AFC, a longstanding lender to the cannabis industry, specifically privately owned companies.

Kyle Ciccarello, CFO of Standard Wellness, said the repayment of the Focus Growth debt and early retirement of the Columbia Care note “reflect Standard Wellness’s proactive approach to managing its financial obligations and optimizing its capital structure.”

The AFC credit facility will help Standard streamline its debt structure, eliminate legacy obligation and invest in strategic acquisitions, according to Maloof.

The St. Louis dispensary acquisition is described as a key component of the company’s long-term growth strategy.

Founded in 2017 in Ohio, Standard Wellness operates across Ohio, Missouri and Utah, and has cultivation, processing and dispensary licenses in Maryland. The company operates five retail locations under The Forest brand and employs approximately 350 people.

Standard made the first-ever legal marijuana sale in Ohio through its dispensary The Forest Sandusky and completing the first delivery to a Utah pharmacy in February 2020, according to the company.

Gramercy Capital Group LLC (through INTE Securities LLC) served as financial advisor, while Feuerstein Kulick LLP acted as legal counsel to Standard Wellness.