Tag: Midwest

  • 4Front Ventures delays annual filings, can’t pay auditors

    4Front Ventures delays annual filings, can’t pay auditors

    4Front Ventures (CSE: FFNT) (OTCQB: FFNTF) said Wednesday it can’t meet its April 30 regulatory deadline to file its annual financial report because it can’t pay its auditors.

    The Phoenix-based company also applied for a management cease trade order that would temporarily restrict company leaders from trading its securities while it tries to fix its money problems.

    The delay comes as the company works to “resolve the issue and expects to be able to file the necessary reports upon completion of securing additional financing, restructuring its liabilities and continuing discussions with one of the company’s lessors,” according to a news release. Management stated that it expects to file within 60 days of restarting its audit.

    The delay follows a tough stretch for 4Front, which lost $6.4 million in the third quarter while watching its revenue slide. Third-quarter revenue dropped to $15.2 million, down from $20.1 million a year earlier and lower than the $18.7 million from the previous quarter.

    The company blamed “softness in our retail channel stemming from heightened competition” in both Illinois and Massachusetts markets for the revenue dip.

    Still, CEO Andrew Thut previously tried to sound positive, saying the company was making progress on scaling production in Illinois, growing wholesale in Massachusetts and seeing better results in Washington.

    “Despite the uncertainties surrounding federal cannabis reform, we’re optimistic, especially given signs that we may have unexpected advocates in the incoming administration,” Thut said at the time. “We’re confident entering Q4 and are ready to return to growth and sustainable positive cash flows from operations.”

    4Front also said at the time that it retained Canaccord Genuity to help with an internal reorganization, particularly regarding its financial position. The company also took out an $850,000 loan to finance ongoing operations.

    The company asked for relief under Canadian National Policy 12-203, which would block management from trading company securities until it files its financials. The Ontario Securities Commission hasn’t ruled on this request yet.

    If rejected, the commission might instead impose a broader order affecting all company securities.

    While the filings remain outstanding, 4Front promised to provide biweekly status updates and confirmed that insiders can’t trade company stock until the annual filings are submitted.

    The company has been pushing growth initiatives despite its financial crunch. During the third quarter, it continued building a massive 250,000-square-foot cultivation facility in Matteson, Illinois, planning to expand from 24,000 to 34,800 square feet of growing space. Its Massachusetts wholesale business showed some promise with a 56% increase in revenue to nearly $2 million for the quarter.

    As of September 2024, 4Front had $278 million in assets, with just $1.2 million in cash, against $326.5 million in liabilities, including nearly $69 million in debt.

    The company said there are no bankruptcy proceedings underway and “no material business developments” since filing its last quarterly report in December beyond what its already disclosed.

    The post 4Front Ventures delays annual filings, can’t pay auditors appeared first on Green Market Report.

  • Analysis: Cannabis Use Associated With Less Stress, Better Sleep Quality Among Military Veterans With PTSD

    Analysis: Cannabis Use Associated With Less Stress, Better Sleep Quality Among Military Veterans With PTSD

    A closeup of a military uniform with a cannabis leaf patch on the sleeve representing marijuana and veterans issuesA closeup of a military uniform with a cannabis leaf patch on the sleeve representing marijuana and veterans issues“While alcohol use appears to perpetuate a reinforcing cycle of stress and poor sleep, cannabis use may offer short-term stress relief and perceived sleep benefits,” investigators determined.

    The post Analysis: Cannabis Use Associated With Less Stress, Better Sleep Quality Among Military Veterans With PTSD appeared first on NORML.

  • Clinical Trial: Orally Administered Delta-8 THC Possesses Similar But Milder Effects Than Delta-9 THC

    Clinical Trial: Orally Administered Delta-8 THC Possesses Similar But Milder Effects Than Delta-9 THC

    Two cannabis leaves rest atop small squares of chocolate brownies arranged on a dark platterTwo cannabis leaves rest atop small squares of chocolate brownies arranged on a dark platterResearchers concluded, “The findings from the present study underscore the importance of establishing regulatory frameworks that address safety, labeling, and consumer education related to delta-8 THC products.”

    The post Clinical Trial: Orally Administered Delta-8 THC Possesses Similar But Milder Effects Than Delta-9 THC appeared first on NORML.

  • Study: CBD Reduces Chronic Pelvic Pain, Related Symptoms

    Study: CBD Reduces Chronic Pelvic Pain, Related Symptoms

    A person against a background of cannabis leaves wraps their arms around waist representing relief from pelvic painA person against a background of cannabis leaves wraps their arms around waist representing relief from pelvic painEighty-one percent of participants reported reduced pain following their use of CBD products.

    The post Study: CBD Reduces Chronic Pelvic Pain, Related Symptoms appeared first on NORML.

  • 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?”

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  • 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.

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