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Cannabis Briefs for August 17, 2021

August 17, 2021

•The resignation of Andrew Cuomo and accession of Kathy Hochul to the office of New York Governor has cannabis players speculating on whether the change in administration could affect the state’s rollout of recreational cannabis. While some have suggested that the disruption in the Governor’s office could delay the rollout, Cuomo has been holding up his nominations of appointees to the state’s Cannabis Control Board and executive director of the Office of Cannabis Management for months, which has itself halted progress toward adult-use sales. Citing Hochul’s comments in support of legalization earlier this year, industry operators are hopeful that Cuomo’s resignation could therefore jumpstart the process of setting up a market that’s projected to reach $245 million in revenue by mid-2025.

•Scotts Miracle-Gro has formed a new subsidiary, The Hawthorne Collective, which will make strategic minority investments in the cannabis business. As its first move, The Hawthorne Collective is providing a $150 million convertible loan to Toronto-based RIV Capital, a cannabis investment and acquisition firm listed on the Toronto Stock Exchange. “With full appreciation of current banking and legal requirements, The Collective is designed to allow us to eventually participate directly in a larger marketplace as the legal environment changes over time,” said Scotts Miracle-Gro chairman and CEO Jim Hagedorn. Scotts Miracle-Gro has annual revenues of $4.1 billion.

•Monogram, the cannabis brand from Jay-Z, has expanded its Loosies preroll label with two new strains. They include No.01, billed as a medium strength and cerebral strain, and No.3, billed as a heavy strength and relaxing strain. Each Loosies Preroll pack contains four 0.4g prerolls. Monogram is part of The Parent Company, which recently reported second quarter sales of $54 million and an adjusted EBITDA loss of $10.4 million.

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