Category: The Business of Cannabis

  • Safe Harbor Financial, FundCanna team up to tackle cannabis banking headaches

    Safe Harbor Financial, FundCanna team up to tackle cannabis banking headaches

    Safe Harbor Financial (Nasdaq: SHFS) and FundCanna are joining forces to help cannabis businesses break through persistent banking and money barriers, the companies announced Thursday.

    The new referral deal between Safe Harbor and fellow lender FundCanna creates a one-stop solution for marijuana operators who’ve been largely shut out of traditional banking services.

    The setup: Safe Harbor will send clients to FundCanna when they need loans or equipment financing, while FundCanna will direct its borrowers to Safe Harbor’s banking services. All loan money will flow through Safe Harbor-managed accounts, keeping everything above board, according to the news release.

    “This partnership delivers a practical, scalable solution that puts the financial needs of cannabis operators first,” said Terry Mendez, Safe Harbor’s new CEO, who’s trying to breathe new life into the company after a rough financial stretch.

    Safe Harbor recently posted mixed results for 2024 – its lending business is booming – up 123% for the year – but the company still recorded a hefty $48.3 million loss. Still, Mendez, who took over earlier this year after Sundie Seefried’s retirement, has big plans to overhaul the company.

    In March, he told shareholders he wants to transform Safe Harbor from just a cannabis banking operation into a comprehensive business services hub – including expanded lending, which the FundCanna deal supports.

    FundCanna’s founder Adam Stettner says the partnership “brings together two trusted platforms dedicated to solving persistent financial barriers in cannabis.” His team has pumped $20 billion into various underserved businesses over two decades.

    The collaboration comes as cannabis companies continue to struggle with cash constraints while traditional banks keep them at arm’s length due to federal prohibition. For Safe Harbor, which has already processed $25 billion in cannabis transactions since its 2015 founding, it says, the deal represents a key piece of Mendez’s vision to serve not just cannabis but eventually other “debanked” industries like crypto and gaming.

    The post Safe Harbor Financial, FundCanna team up to tackle cannabis banking headaches appeared first on Green Market Report.

  • Florida’s marijuana patient base continues to grow as lawmakers target hemp industry

    Florida’s marijuana patient base continues to grow as lawmakers target hemp industry

    Florida’s medical marijuana registry continues to grow, adding roughly 14,000 patients in early 2025. That trend could continue as lawmakers target a key competitor for the industry, proposing tough new hemp rules that could reshape the state’s cannabis scene.

    Patient numbers rose steadily from 895,000 in January to 909,000 by April, according to the Florida Office of Medical Marijuana Use. Meanwhile, Florida senators unanimously backed legislation to restrict hemp-derived THC products, resembling a bill Gov. Ron DeSantis vetoed last year after hemp industry pressure, with some caveats.

    “We have retailers in the state of Florida that are selling products that are intoxicating,” the Florida Phoenix reported Republican Sen. Colleen Burton, the bill’s sponsor, as saying. “They are selling products that are putting adults and children in the hospital. And, sadly, they are selling products that are causing the deaths of Floridians.”

    Senate Bill 438 would ban Delta-8 products outright and limit Delta-9 hemp items to 5 milligrams per serving, according to the legislative text. THC-infused beverages would face the same cap and would only be allowed to be sold by businesses with liquor licenses, similar to legislation creeping its way through statehouses across the country.

    Recent testing of products from smoke shops across Florida found concerning potency issues: 50 of 53 hemp flower samples exceeded the federal 0.3% THC limit, making them essentially unregulated marijuana products, according to testimony during legislative hearings.

    “These are very intoxicating products,” Republican Sen. Gayle Harrell, who represent southeast Florida, said. “They’re addicting products at the end of the day. And people need to know that. … We need to make sure that people know what they’re buying. And we have seen so many fly-by-night places selling hemp – ‘safe hemp’ – and the THC levels are higher than the medical marijuana that you can get in a dispensary.”

    In some ways, hemp products have become a legitimate competitive threat for established cannabis companies. According to Viridian Capital Advisors, “It’s not exactly a closely held secret that hemp intoxicants, along with illicit THC vendors, have hit the THC industry right where it hurts.”

    Viridian’s report noted that analysts project “flat revenues for the top 12 MSOs for 2025″ while the hemp industry continues to grow due to price and convenience advantages. Consumers often “don’t care about seed-to-sale tracking and a (certificate of analysis) on every bottle. They will gladly trade that for the ability to purchase at their gas station or, better yet, online through the mail, especially if it costs less,” the Viridian report stated.

    That shift has pushed even major players like Curaleaf to hedge their bets. The international cannabis giant will open a hemp dispensary in Florida that will offer both its own Select brand and third-party hemp-derived THC beverages and edibles.

    “The move makes complete sense, going along with Curaleaf’s 2024 launch of the Hemp Company,” the Viridian analysis noted.

    But the political animosity around hemp regulation in the state remain complex. After DeSantis vetoed similar restrictions last year, a slew of hemp business owners donated to DeSantis’ efforts to defeat Amendment 3, which would have legalized recreational cannabis for adults aged 21 and above.

    Jacksonville Democratic Sen. Tracie Davis, who co-sponsored the bill, acknowledged during floor debate that the legislation wasn’t much different from last year’s vetoed version.

    If passed by the House and signed into law, the Department of Agriculture would handle enforcement with $2 million allocated to law enforcement for testing equipment.

    The bill also poses deeper questions about cannabis regulation frameworks. As Viridian framed it: “If cannabis is medicine, then perhaps it really should be heavily regulated by the FDA and heavily tested as well. But if cannabis is more analogous to wine or spirits, only less dangerous, then a whole other set of policy structures is appropriate.”

    The report points out: “You can easily walk into a liquor store and purchase enough Jack Daniels to kill five people, but nobody will question your right to make that purchase. Why potency or quantity limits for cannabis, which most people agree is less dangerous?”

    !function(){“use strict”;window.addEventListener(“message”,(function(a){if(void 0!==a.data[“datawrapper-height”]){var e=document.querySelectorAll(“iframe”);for(var t in a.data[“datawrapper-height”])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[“datawrapper-height”][t]+”px”;r.style.height=d}}}))}();

    The post Florida’s marijuana patient base continues to grow as lawmakers target hemp industry appeared first on Green Market Report.

  • Sonoma County joins growing list of California localities rolling back cannabis taxes

    Sonoma County joins growing list of California localities rolling back cannabis taxes

    Sonoma County officials took another step to deliver tax relief to struggling marijuana growers, as the number of licensed cultivators shrank by almost two-thirds under the burden of hefty state and local taxes.

    The County Board of Supervisors this week approved lowering the gross receipts tax to just 2.5% for legal cannabis growers, a reduction of 45%, The Press Democrat reported.

    The move came in response to industry pressure, as businesses warn that many are on the brink of moving back into the underground market just to survive. The number of licensed cultivators in Sonoma County has plummeted to just 66 from 155 in May 2023, The Press Democrat noted.

    The tax rate for outdoor growers will be slashed to 36 cents per square foot of cultivation canopy from its current rate of 69 cents, The Press Democrat reported, while rates for mixed-light cultivators decrease to $1.15 per square foot from $2.51, and indoor growers will see their rates decrease to $3 from $7.58. The rates will go into effect July 1 after a second board vote to confirm the ordinance’s passage.

    The move is the fourth adjustment in the county’s cannabis tax rate since it was established in 2017, and it’s the first time the board has moved to permanently reduce rates. A previous rate reduction in 2022 was temporary.

    The move is intended to help stabilize the local cannabis industry, a county marijuana program official told the board, who cited broadly decreasing wholesale prices for cannabis growers in California. The average price per pound of outdoor-grown marijuana flower, the board was told, has plummeted to $143 per pound from $277 a year ago, while indoor flower goes for just $240 a pound, down from $606 a year prior.

    Sonoma County is the latest in a string of California localities to cut taxes on struggling marijuana companies in recent years. The Southern California cannabis-friendly town of Desert Hot Springs is also weighing another cannabis business tax cut this month to help dispensaries, to 5% of gross receipts from the current 10%, KESQ reported this week. The city’s mayor even threw his support behind the tax cut.

    The move also comes amid a backdrop of fear by California cannabis companies heading into the summer, given that state marijuana taxes are set to increase on July 1, from a 15% excise tax rate to 19%, unless the legislature takes action to forestall the hike.

    The post Sonoma County joins growing list of California localities rolling back cannabis taxes appeared first on Green Market Report.

  • Missouri marijuana sales holding steady in 2025

    Missouri marijuana sales holding steady in 2025

    The relatively young Missouri marijuana market – medical sales launched in 2020 and recreational three years later – appears to be holding steady thus far in 2025, even as some of its more mature state counterparts have seen sales plunge.

    The midwestern cannabis market in March sold $130.8 million worth of marijuana, including $115.7 million on the adult-use side and another $15.1 million in medical products, according to statistics from the state Department of Health & Senior Services.

    That’s the best month of the year thus far, and almost matches December’s holiday sales peak of $130.9 million. Sales dipped in January to $122.8 million and again in February to $116.2 million, before rebounding somewhat in March.

    Sales were also up year-over-year from $124.7 a year ago in March, when the state sold $108.6 million in recreational cannabis and $16 million in medical marijuana.

    But the market has also diverged – as most state cannabis markets have over time – with medical sliding downward and recreational gaining steam.

    Medical sales peaked in December 2022, just two months before the adult-use market launched, with $40.2 million in sales. Since then, the medical marijuana industry has seen its market share plummet, as recreational has blossomed from $93.4 million in just its second month to a steady nine-figure sales report each month.

    The last time recreational sales were below $100 million was February 2024, when recreational dispensaries sold $98.3 million and medical dispensaries sold $15 million.

    Still, the medical market seems to have stabilized at around $14 million to $15 million in sales per month, a level that it’s been at for the past 12 months. The lowest medical sales month was February this year, when medical patients bought just $13.7 million worth of goods.

    Total marijuana sales all-time as of March topped $3.7 billion.

    The post Missouri marijuana sales holding steady in 2025 appeared first on Green Market Report.

  • Report: Canadian cannabis market growth slows to 4% in first quarter

    Canada’s recreational cannabis market grew just 4% year-over-year in the first quarter of 2025, continuing a trend of decelerating growth from previous years, according to a new industry report.

    The analysis from Zuanic & Associates, which examined retail data from Hifyre, shows the market growing at a much slower pace versus the mid-teens growth seen in 2022 and 2023.

    Despite ongoing industry consolidation efforts, the cannabis market appears to be becoming more fragmented. The top three companies held 27% market share in the first quarter of 2025, down from around 31% in the same quarter last year, the report found.

    Several midsized producers posted strong growth despite the overall market slowdown. Companies with double-digit sales increases include:

    Auxly (+32%)
    Cannara Biotech (+37%)
    Canopy Growth (+28%)
    Weed Me (+30%)
    Rubicon Organics (+30%)

    Meanwhile, larger players, including Tilray, Village Farms International and Decibel, experienced double-digit declines in their domestic market share. According to the report, that likely reflects strategic shifts rather than competitive failures.

    “For at least the first two, the share loss relates to an increased focus on sustainable sales growth,” the report noted, adding that these companies are shifting “away from deep discounts and the value end of the market.”

    The analysis also pointed to format shifts in Canadian consumer preferences. Flower declined from 38% of sales in the first quarter of 2024 to 36% in the first quarter of 2025, while pre-rolls grew from 30% to 32% and vapes from 17% to 18%.

    “Compared with the larger U.S. market, vape and edibles are underindexed in Canada, while pre-rolls are overindexed (flower is only slightly underindexed),” Pablo Zuanic, the report’s author, wrote.

    Segment leadership shows varying degrees of market concentration. In vape products, the top five companies control 57% of the market, while in flower they hold 49% and in pre-rolls just 34%.

    Retail flower prices have largely stabilized, averaging C$5.09 per gram in the quarter compared to C$4.89 a year earlier. However, pricing strategies vary by company, with premium producers like Cannara (C$8.24 per gram), Rubicon (C$8.30) and Aurora (C$7.68) commanding substantially higher price points than the category average, Zuanic said.

    Organigram, including its freshly-acquired Motif Labs, maintained its market leadership with 11.6% share, while Tilray dropped nearly 2 percentage points year-over-year to 9.1% and Village Farms fell 1.8 points to 6.2%.

    The report suggests that export opportunities may be becoming more important for Canadian producers, noting that “the pull of the export markets is also impacting domestic market share performance and operator economics,” as exports have helped stabilize domestic pricing.

    Zuanic found that despite recreational legalization being in place for over six years, Canada’s cannabis market remains underdeveloped versus many U.S. states on a per capita basis. The report estimates Canadian recreational per capita spending at approximately $100, significantly lower than states like Michigan (>$300) and Colorado (>$200).

    The post Report: Canadian cannabis market growth slows to 4% in first quarter appeared first on Green Market Report.

  • ‘Stoner stereotype’ not enough for cannabis marketing

    ‘Stoner stereotype’ not enough for cannabis marketing

    Cannabis marketing isn’t just about buying ad space on Weedmaps or Leafly anymore. But the options might not be obvious to everyone – and how you advertise matters as much as where, according to one marketing expert.

    Today there are a number of avenues available to marijuana businesses trying to expand their reach with customers, according to Karen Cuce, vice president of strategy at Pennsylvania-based Brkthru.

    “There are a vast array of options in terms of what cannabis companies can do” to broaden their consumer base and reach new customers, Cuce said. “That can be streaming television, it can be through websites and apps – specifically banner ads, online video or the videos that play before, during, or after a piece of video-based content that the consumer’s watching. Streaming music, streaming audio, podcasts, these are all channels with which the cannabis user is actually spending disproportionately more time than the average U.S. citizen. They are vastly and deeply digitally connected.”

    Cuce said her firm focuses primarily on paid media options for cannabis clients, which rules out many of the bigger social media platforms simply because they won’t accept paid ads from marijuana businesses. But at least one – X, formerly known as Twitter – has rolled back such restrictions, Cuce noted.

    At the same time, she said, it’s never a good idea to put all your eggs in the same basket when it comes to a marketing strategy. A better plan, she said, is to diversify.

    “We can take (cannabis companies’) organic content and seamlessly lift it to run it across, and here’s what I’d recommend, definitely display because that’s going to be a very efficient means to extend reach and really stretch their budget,” Cuce said. “Essentially we’re using very simple imagery as well as a headline, blending it in with the native environment, the publisher on which the ad appears. It’s essentially sponsored content.”

    “Both of those channels, as well as online video, have been a really effective trifecta for our cannabis businesses,” Cuce said. “Those are all highly adaptable channels. We can use a number of different targeting approaches.”

    A few other pointers Cuce suggested that cannabis companies keep in mind:

    Don’t rely on “stoner stereotypes.” Cuce said marketing research has found that modern-day cannabis consumers are diverse, cause-driven, value-driven and often highly successful professionals. “Quite frankly, it’s not just a bunch of people, stereotypically speaking, sitting around eating pizza and potato chips while they’re playing video games. It’s so much more,” Cuce said.
    Advertise sales and deals for holidays like 4/20, which can be a great lure for budget-conscious customers. “We know that discounts can be motivating, they can certainly be a hook,” Cuce said.
    If a cannabis company has a limited marketing budget, skip marijuana-focused websites like Weedmaps and Leafly in favor of advertising channels that will reach broader “canna-curious” audiences, instead of only those that are already loyal customers. “It is absolutely critical, especially as we see so many cannabis brands really stepping up and owning the space,” Cuce said.

    The post ‘Stoner stereotype’ not enough for cannabis marketing appeared first on Green Market Report.

  • Arizona marijuana market continues downward trend in February

    Arizona cannabis sales stats are down for the second straight year in a row, and have taken enough of a dip that the Arizona Mirror described medical marijuana sales as “cratering” and recreational sales as “softening.”

    According to sales figures from the state Department of Revenue, annual sales are down about 10% to $1.3 billion after three years of hitting at least $1.4 billion, according to analysis by the Mirror. And the downturn appears to have no end in sight.

    In February, the most recent month for which sales numbers are available, recreational and medical sales combined were just $96.3 million, down almost 15% year-over-year from $113 million. The most recent February numbers included $80.1 million in recreational sales and another $15.6 million in medical, with both figures down year-over-year, from $89.4 million and $23.6 million, respectively.

    Last year recreational marijuana sales were down by almost $43 million from 2023, the Mirror reported, while medical sales fell by $114 million between 2023 and 2024.

    The medical side of the industry in particular is “a shadow of what it was” just four years ago, the Mirror reported, with sales reaching just a third of what they used to be. Last year, total medical sales hit just $243 million, down from $733 million in 2021.

    The recreational market has continued to eclipse the medical side after launching in 2021, the Mirror noted, and comprised 81% of all cannabis sales last year, up from 66% in 2022.

    The post Arizona marijuana market continues downward trend in February appeared first on Green Market Report.

  • Missouri revokes 25 cannabis licenses in social equity program crackdown

    Missouri revokes 25 cannabis licenses in social equity program crackdown

    Missouri cannabis regulators revoked 25 more microbusiness licenses after concluding the operations wouldn’t be genuinely controlled by the disadvantaged entrepreneurs the program was designed to help, the Missouri Independent reported.

    The action brings to 34 the number of licenses canceled by the state since the social equity program launched in 2023, representing more than a third of the 96 permits issued through the lottery system, according to a news release from the Missouri Division of Cannabis Regulation on Monday.

    The microbusiness program was created to provide cannabis business opportunities for individuals who might otherwise lack access to the industry. However, regulators found evidence that well-connected investors and consultants were recruiting eligible individuals to apply but then arranging deals that limited their control and profits.

    “It is not sustainable to keep going through rounds of license issuance and then having to do rounds of revocations,” Amy Moore, director of the state’s cannabis regulatory division, said at a February town hall meeting, according to the Independent. “We’re never going to get this market fully built out.”

    The Independent, which has investigated the program for more than a year, reports that Arizona-based cannabis investor Michael Halow is connected to 22 of the revoked licenses, including 16 canceled Monday. Halow reportedly was associated with more than 700 of the approximately 3,600 applications submitted since the program began.

    In an email to the outlet, Halow disputed the state’s decision and plans to appeal. He defended his company’s approach, saying they help “people without generational wealth or experience as an entrepreneur” who open “businesses in neighborhoods in need of jobs and economic opportunity.”

    Four licenses connected to cannabis consultants David Brodsky and Scott Wootton were also revoked Monday. Regulators cited “false or misleading information” in their agreements that effectively transferred “ownership and operational control to another entity,” according to division documents referenced by the Independent. Brodsky and Wootton declined to comment to the outlet.

    The division announced new proposed rules in December aimed at preventing what it called “predatory arrangements in microbusiness licensing.” The state is currently reviewing public comments on these draft regulations before deciding when to submit finalized rules to the Missouri Secretary of State.

    The post Missouri revokes 25 cannabis licenses in social equity program crackdown appeared first on Green Market Report.

  • Psyence BioMed invests $500,000 more into PsyLabs, locks down Ibogaine supply deal

    Psyence Biomedical (NASDAQ: PBM) invested an additional $500,000 in PsyLabs, deepening its relationship with the psychedelic ingredients producer while securing exclusive access to pharmaceutical-grade ibogaine.

    The cash infusion builds on Psyence’s initial partnership from September 2024, when it acquired an 11.13% equity stake in PsyLabs and locked down exclusive rights to nature-derived psilocybin for clinical trials.

    The new agreement gives Psyence first dibs on worldwide supply of pharmaceutical-grade ibogaine, a psychoactive substance from the Tabernanthe iboga plant being eyed for addiction treatment.

    “We’re thrilled to strengthen our partnership with PsyLabs through both our financial investment and this opportunity to acquire exclusive ibogaine supply rights,” CEO Dr. Neil Maresky said in a statement. “Ibogaine holds significant potential as part of a new wave of therapeutics targeting some of the most challenging conditions in mental health.”

    Psyence is betting big on nature-derived compounds rather than synthetic alternatives, aiming to build what it calls a “vertically integrated, multi-asset psychedelics biotech platform.” The company plans to evaluate ibogaine specifically for substance use disorders, including alcohol addiction.

    Tony Budden, PsyLabs’ chief executive, said the expanded collaboration creates “a powerful platform to explore the full potential of ibogaine and psilocybin in addressing addiction and mental health disorders.”

    PsyLabs operates from an ISO 22000-certified facility with federal licenses to handle various psychedelic compounds. The company has already shipped psilocybin products to Canada, the U.K., Portugal and Slovenia.

    The deal remains subject to finalizing terms and regulatory approvals.

    While touting ibogaine’s potential to “interrupt” addiction, Psyence included the usual disclaimers that regulatory authorities haven’t evaluated claims about psychedelic compounds and that “vigorous scientific research and clinical trials are needed.” The company acknowledges it hasn’t yet conducted clinical trials for its proposed treatments.

    The post Psyence BioMed invests $500,000 more into PsyLabs, locks down Ibogaine supply deal appeared first on Green Market Report.

  • Grown Rogue posts strong early results from ABCO Garden State

    Grown Rogue posts strong early results from ABCO Garden State

    Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) announced that its New Jersey cannabis cultivation affiliate generated $1.8 million in preliminary first-quarter revenue with gross margins between 55% and 60%, showing some early success in the Garden State market.

    The Oregon-based craft cannabis company provided some details on both the performance and financial structuring of its New Jersey operation, ABCO Garden State, LLC.

    According to the company, ABCO has achieved cultivation yields exceeding 60 grams of flower per square foot of bench space and has penetrated more than half of New Jersey’s dispensaries with its flower and pre-roll products.

    “I’m excited by the initial progress we have seen in New Jersey across cultivation, post-harvest, and sales,” CEO Obie Strickler said in a statement. “We are seeing strong cultivation yields, greater than 60g of flower per square foot of bench space with preliminary gross margin between 55-60%.”

    The company reported an average selling price exceeding $2,500 per pound for whole flower and pre-roll products during the first quarter. Strickler noted that ABCO products are seeing “accelerating re-order trends, providing some early validation with respect to our quality, value, and brand strength.”

    Grown Rogue currently owns 44% of ABCO but plans to exercise its rights to convert to 70% ownership in fall 2026, the earliest opportunity allowed under New Jersey regulations. The company has structured its investment primarily through senior secured promissory notes that require repayment before any profit distributions, with a March 31 balance of $8.2 million including accrued interest.

    “The majority of the capital Grown Rogue has deployed in ABCO has been structured through secured loans,” CFO Andrew Marchington said in the news release. “The repayment of these notes are structured to be paid as a first priority before the distribution of any profits to ABCO partners. We believe this is a preferred deal structure for Grown Rogue shareholders despite its complex impact on our financial statements.”

    ABCO is planning some big expansion, with construction of Phase II scheduled to begin in the second quarter. That’ll double steady-state production from the current 500-600 pounds per month to 1,000-1,200 pounds monthly, it said, with full capacity expected by early 2026.

    Due to accounting rules, Grown Rogue doesn’t anticipate being able to consolidate ABCO’s financial results until it obtains 70% ownership. Instead, the company said it will provide pro forma disclosure regarding ABCO operations to give investors appropriate transparency.

    The post Grown Rogue posts strong early results from ABCO Garden State appeared first on Green Market Report.