WEED MEDIA IN CRISIS

The pandemic is taking a toll on the not especially healthy cannabis media world.

Hightimes Holding Corp. said it had suspended publication of Dope and Culture magazines which are typically distributed free in dispensaries.
Marijuana Moment

  • Six employees were furloughed across the brands including longtime High Times magazine editor Danny Danko.  

A “LOST YEAR” FOR TRADE SHOWS

WeedWeek business columnist Dan Mitchell writes the pandemic has made tough times even tougher for cannabis trade shows, and the companies which rely on them:

When a trade show cancels, it creates enormous ripple effects, said Jessi Rae, chief operating office of CannaGrow Expo, which had a show scheduled for April 17 and 18 at the Marriott Marquis in Chicago. “AV teams, shipping people, decorators, food and beverage staff, temps, etc., all derive income from activities related to our events. And hundreds of companies make new deals at our shows that carry them through their fiscal year. This is as much of an impact to them as it is to us.”

Read the whole thing.

Quick Hit

  1. Insurance Journal has four ways the pandemic will change insurance for cannabis companies.

SMOKING, VAPING POT PROBABLY ELEVATES COVID RISK

Health authorities say smoking and vaping likely escalate risks associated with Covid-19, a respiratory disease. There’s more data indicating that tobacco use is associated with Covid complications but doctors are advising “prudence” with regard to cannabis. 
New York Times

  •  “Inhaling combusted or vaped cannabis products can damage lung cells, may increase viral replication, and does affect the ability to fight off infection,” said Dr. Jonathan Winickoff, a professor at Harvard Medical School said. “Clean air is what the lungs should be inhaling, especially during a global pandemic.”

Leafly sums up cannabis and coronavirus, what you need to know.

Quick Hit

  1. At Salon, writer Alia Volz makes the case that MED is essential medicine.

IANTHUS DEFAULTS ON DEBT

Shares in iAnthus fell 62% after the “deeply unprofitable” MSO defaulted on its debt.
Seeking Alpha

  • At Seeking Alpha analyst Jon Cooper says the company will likely need to renegotiate with its creditors, a process complicated by iAnthus currently suing one of its creditors.
  • MJ Biz wrote up the suit against Texas-based Oasis Investments.
  • iAnthus stock is currently trading around $.19 per share. 
  • iAnthus’ main dispensary brand is Be. It recently became the first dispensary to open in New York City’s Staten Island. 
  • The company also announced it is investigating potential conflicts of interest regarding CEO Hadley Ford. 
  • Equity Guru suggests the default could be a “tactic.”
  • WeedWeek interviewed iAnthus CEO Hadley Ford a few months ago.
  • The company’s largest creditor is Gotham Green Partners which has close ties to Canadian producer Cronos Group and has renegotiated MedMen‘s debt several times.
  • Do you have additional information? Email me at alex@weedweek.net. Sources will be protected.

At New Cannabis Ventures, Alan Brochstein looks at what the pandemic means for pot stocks.

Grizzle sees a potential bull market in “booze, smokes and pot.”

Quick Hit

  1. California operator Caliva launched its new delivery service independent of former partner Eaze. 
    TechCrunch
  2. Green Market Report lists 11 top cannabis law firms.

THE END OF PUFF, PUFF, PASS?

At BroBible, writer Mike Adams says good riddance to passing joints:

Some of you sickos are still out there slobbering all over the same joint like a pack of wolves fighting over a mountain goat. It’s like the cannabis scene didn’t get the memo informing them that the days of the puff, puff, pass are gone forever.

I’m not sure how sharing a joint with others ever became a thing, to begin with. Call me old fashioned, but swapping spit with people that I haven’t seen naked at least once, well, that’s just not my jam.

Quick Hit

  1. Ice cream maker Ben and Jerry’s lists six of the more outlandish urban legends about the company.

REC COMPANIES SUE MASSACHUSETTS GOV.

A group of Massachusetts companies and consumers sued Gov. Charlie Baker (R) for his refusal to allow REC shops to open.In addition to five companies, the named plaintiffs include Stephen Mandile, an Army veteran who fears losing his federal benefits if he applies for a MED card.
Boston Globe

  • Baker, who opposed REC legalization, has said open shops would attract visitors from out of state, despite REC advocates saying sales could be limited to Massachusetts residents.
  • The suit came despite regulators allowing some REC businesses to supply MED shops.
  • The state will also require cannabis companies to file a report with the state when an employee tests positive for Covid.
  • More people in Massachusetts are acquiring MED cards.
    WBUR

Quick Hit

  1. In Arizona, the state’s Republican administration could kill November’s expected REC ballot initiative.
    AZ Central

POWER PLAYERS: TRULIEVE CEO KIM RIVERS

Who says big pot companies can’t be profitable? Last week, Trulieve, the dominant player in Florida’s MED-only market posted big numbers. For this week’s Power Players interview I spoke to CEO Kim Rivers about what it takes to make money in this business.

A few highlights: 

On building a dominant market position:

We launched and began building when the market in Florida was still CBD only. And, of course, as the market evolved, we’re very active in ensuring that more conditions [qualified patients for MED]. We helped ensure that physicians understood what an opportunity this was for their practices.

On the possibility of ending mandatory vertical integration:

Having additional access for small businesses is a positive from a policy perspective. From our perspective, having the ability to do business with some smaller companies that are in specific niches of the market is a win-win.

On expansion to new states:

It’s important that we can achieve some level of scale, and market penetration. Also, we look at markets that we feel want to do business with companies like ours. There’s some markets out there that maybe don’t. And that’s okay. I think it’s important to understand where we think our advantages are, and not trying to force ourselves where maybe they’re not.

Read the whole thing.

Equity Guru looks at “the good, the bad and the ugly” earnings reports from Trulieve, KushCo and Canadian producer Hexo.

Quick Hit

  1. Longtime MED researcher Dr. Ethan Russo has a new company called CReDO Science which aims to develop “an eclectic range of cannabinoid centered innovations.”
    Forbes– Abbie Rosner

VULTURE INVESTORS ARRIVE IN CALIFORNIA

At Canna Law Blog, attorney Hilary Bricken discusses the arrival in California of so-called “Vulture investors:”

“Every cannabis market in which I’ve worked has experienced a period of extensive business failures, consolidations, and market stress. And it’s that time now for California cannabis (and that was already happening before COVID-19 struck)…

“It’s been nearly two years of licensing, and in a strong local control market like California, it’s no surprise that many cannabis companies (of all sizes) are either going under or headed that way…what that means is that enterprising investors experienced with distressed assets have significant opportunities before them.”

????There’s more in this weekend’s stellar issue of WW California.

TAMING THE PLANT

The New York Times Magazine has a good read about companies trying to develop pot products with consistent, predictable highs. Some believe this is possible by producing formulas with specific ratios of cannabinoids and terpenes.

Based on the piece, it doesn’t seem like anyone will be mastering this anytime soon.

FIRST U.S. PRISON COVID DEATH A DRUG OFFENDER

The Drug Policy Alliance mourned the death of Patrick Jones, a 49-year old man serving a 27 year sentence for drug-related offenses. He was the first Covid-19 fatality in the U.S. prison system.

“There are 450,000 people currently incarcerated for a drug related charge, and even if you released them all it would not be enough to flatten the curve in the criminal legal system. In Mr. Jones’ facility alone, a total of 30 incarcerated individuals and staff have tested positive for COVID-19. There will be more Patrick Jones’.”