Tag: Southeast

  • 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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  • Scotts cuts Hawthorne Collective loose as it pivots away from cannabis

    Scotts cuts Hawthorne Collective loose as it pivots away from cannabis

    The Scotts Miracle-Gro Company (NYSE: SMG) made it official. The gardening behemoth has officially transferred its wholly-owned subsidiary, The Hawthorne Collective, Inc., to an independent strategic partner.

    Scotts established its hydroponic business, Hawthorne Gardening, to enter the cannabis space. In the beginning, it looked like a stellar plan, as the industry was rapidly growing and competing to see who could build the largest grow facilities. Sales of equipment soared and Hawthorne was seen as a leader in the space. The company also saw this as an opportunity to get into the investing side of cannabis as well and created the Hawthorne Collective as an investment vehicle.

    Riv Capital deal

    The company mentioned in its statement that the Hawthorne Collective’s holdings included investments in Fluent, previously Cansortium, a vertically integrated cannabis company with licenses and operations in Florida, Pennsylvania, Texas and New York. It did not remind investors that the company gave $150 million to Riv Capital in 2021. Then, in 2022, Hawthorne Collective gave Riv another $50 million and Riv Capital spent $247 million to buy New York medical operator Etain.

    The deal angered the Riv board, which felt it was too high a price to pay and that turned out to be prophetic. New York State delayed the company’s ability to sell adult-use cannabis, which pushed the investment return out by many years. Riv had paid $247 million for a company that was selling only a million dollars of medical marijuana a quarter.

    In December of 2024, Fluent bought Hawthorne Collective’s unsecured convertible notes in Riv for $160  million in Fluent stock.

    Hydroponic dries up

    Hawthorne Gardening fared no better. The bottom fell out as the commodity price for cannabis dropped below or at least close to what it cost to produce cannabis. Large multi-state operators began to scale back on the huge cultivation facilities and sales began to drop at Hawthorne Gardening. The falling fortunes at Hawthorne began to weigh on the overall company and were negatively impacting the company’s stock price.

    The board of directors decided it was time to part ways for both subsidiaries.

    “The Hawthorne Collective transaction is the initial step in our plan to move our cannabis-adjacent subsidiaries into a separate and independent company as we further our strategic focus on our core lawn and garden business,” said Jim Hagedorn, chairman and CEO of Scotts Miracle-Gro. “For our shareholders, this will reduce the impact of the cannabis sector’s volatility on our Company’s stock and provide opportunities to drive meaningful and immediate value creation through increased investments in our consumer business. As we further advance this plan, we next will look to separate The Hawthorne Gardening Company from ScottsMiracle-Gro by the close of fiscal 2025.

    According to the company statement, Scotts Miracle-Gro transferred The Hawthorne Collective to a strategic partner in exchange for an interest-bearing promissory note. Scotts said it retains an option to buy back The Hawthorne Collective or its assets should cannabis legalization and other measures to positively impact the industry be approved at the federal level.

    Hagedorn continued, saying, “The Hawthorne companies were intended to capitalize on the legal cannabis sector, but the ability to achieve sustained growth within this industry has been challenged by four years of unkept promises resulting in total inaction at the federal level on cannabis-related issues.”

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  • HOPE Therapeutics to buy clinic company Dura Medical

    HOPE Therapeutics to buy clinic company Dura Medical

    HOPE Therapeutics, an interventional psychiatry network wholly owned by NRx Pharmaceuticals (Nasdaq: NRXP), today announced it was buying Dura Medical per the previously announced non-binding letter of intent.

    Financial terms of the transaction were not disclosed. Dura Medical Founder Stephen Durand will be named director of Florida clinic operations.

    Hope stressed that Dura…

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  • Enveric posts $9.5M loss for 2024, but revenue could be on horizon with licensing deals

    Enveric posts $9.5M loss for 2024, but revenue could be on horizon with licensing deals

    Florida-based psychedelics firm Enveric Biosciences (NASDAQ: ENVB), which is still in the pre-revenue stage, this week reported a $9.5 million net loss for 2024, down from the $17.4 million it lost in 2023 but still well in the red as it continues developing non-hallucinatory treatments for mental health disorders.

    The yearly…

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  • Planet 13 pumps the brakes on expansion, keys in on Florida

    Las Vegas-based Planet 13 Holdings (CSE: PLTH) (OTCQX: PLNH) slowed its roll to accommodate industry setbacks, including the November loss of recreational marijuana legalization in Florida and “ongoing industry-wide price compression,” company leadership said during its quarterly earnings call last week.

    That means less rapid expansion and probably not as many…

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  • Florida court maintains $1.3M medical marijuana license renewal fees

    Florida court maintains $1.3M medical marijuana license renewal fees

    Florida’s First District Court of Appeal upheld a state formula requiring medical marijuana operators to pay around $1.3 million in biennial license renewal fees, rejecting arguments that the state should offset these costs with other cannabis-related revenue.

    The unanimous ruling, issued Wednesday, affirmed that the Florida Department of Health acted within…

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  • Vireo Growth updates acquisition plans – but one company appears to be missing

    Vireo Growth updates acquisition plans – but one company appears to be missing

    Vireo Growth (CSE: VREO) (OTCQX: VREOF) told investors in December that it planned to acquire four companies across the U.S.: Proper Brands in Missouri, Deep Roots Harvest in Nevada, WholesomeCo Cannabis in Utah and The Flowery (Bill’s Nursery) in Florida. But last week, when the company provided an update on…

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  • Florida Gulf Coast University plans to offer marijuana class in August

    Florida Gulf Coast University will offer a class on marijuana when school resumes in August.

    “I have been studying drugs, teaching about drugs for 25 years,” said Rosenthal, who has a doctorate degree in neuroscience and a master’s neuropharmacology. “My wish is that policy could be more informed by science. I am going to be taking the lead on a lot of the physiology, the pharmacology, the medical aspects.”

    — Read on www.news-press.com/story/news/education/2018/07/02/florida-gulf-coast-universuty-plans-offer-marijuana-class-august/745292002/

  • Florida’s medical-marijuana registry clinics are booming

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  • Local medical marijuana business slowly heats up

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