The Daily Hit is a recap of the top financial news stories for Tuesday, December 17, 2024.

On the Site

STIIIZY faces another suit over marketing to teens, psychosis claims

The new challenge adds to its laundry list of lawsuits as scrutiny mounts over youth targeting, illegal dispensaries.

Read more here.

Massachusetts regulators advance social cannabis consumption rules

The state’s Cannabis Control Commission is targeting mid-2025 to launch the program.

Read more here.

Alabama cannabis regulators slash business fees by a quarter

The one-time-only discount is only available to operators who were licensed a year ago.

Read more here.

Missouri sees slew of bills to regulate growing hemp market

Alcohol distributors and hemp companies are battling over THC limits and sales restrictions.

Read more here.

MediPharm Labs sells Ontario facility for C$5.5M as part of streamlining plan

Kensana wants to use the facility to develop an FDA-approved topical chronic wound treatment.

Read more here.

Charlie Fox opens largest northeast dispensary in Times Square

Charlie Fox is hoping to cater to tourists and commuters alike.

Read more here.

In Other News

Michigan

Michigan cannabis sales for November were higher than expected, according to data from the Cannabis Regulatory Agency. Total sales were $276.4 million, up 6.1% from a year earlier, and 2.9% from October. Medical marijuana sales were slightly less than $900,000.

Read more here.

Aurora Cannabis

Aurora Cannabis announced a distribution partnership between The Entourage Effect and MedReleaf Australia. The Entourage Effect provides comprehensive distribution and support services to pharmacies in Australia and will serve as a wholesaler for MedReleaf Australia’s portfolio of products under the CraftPlant, Aurora and IndiMed brands.

Read more here.

Numinus Wellness

Numinus Wellness closed its previously announced definitive agreement with Stella, an interventional psychiatry practice focused on treating PTSD, anxiety and depression with biological modalities, of the sale of the company’s five Wellness Clinics in Utah for $3.53 million.

Read more here.

The Alabama Medical Cannabis Commission last week decided to roll back “most cannabis business license fees by 25%,” potentially providing some financial relief to business owners who have been waiting months for the market to launch as legal battles over some permits have continued in court.

The commission voted on Thursday to approve the fee cut, which will apply only to processors, growers, transporters and testing labs, but not to retailers, 1819 News reported. Fees for those companies range from $30,000 to $40,000, and the reduction is a one-time-only benefit for businesses that were licensed a year ago, a spokesperson for the agency emphasized.

The fee reduction was approved after an earlier attempt at reducing fees by 66% failed, 1819 News reported. With the move, the commission is sacrificing $147,500 in income from fees.

One of the licensed growers, owner John Reeves of CRC of Alabama, said during a November AMCC meeting that permitholders needed such a break precisely because of the stalled market launch, which has meant that companies like his have been burning through capital while unable to begin operations, let alone bring in revenue.

“We’re operating and have absolutely nothing coming in,” Reeves said at the time, 1819 News reported.

“A lot of us, including CRC was prepared to work at a loss for several years if we needed to, but we did not prepare to work at a total loss,” Reeves said. “It costs a lot of money to run a cannabis cultivation plant. There are irrigation systems to put in, a complete revamping of your facilities, there’s just so much that goes into it not to mention the labor.”

The AMCC has struggled for years to finalize the winners of the “integrated” medical marijuana permits, and one lawsuit over the licensing process is slated for a court hearing on Jan. 13.

The last time the AMCC revisited licensing was December 2023, when it chose – for the third time – winners of the integrated permits. Since then, however, litigation has essentially paused the medical cannabis market rollout, and it’s not clear when the state may be able to move forward, despite the appointment of a mediator in October to hopefully get the matter resolved. The situation even prompted calls from some state lawmakers earlier this year to redo the licensing process altogether, though that push was a non-starter.