Cannabis Briefs for November 30, 2021November 30, 2021
•Oakland, California-based cannabis player Harborside has announced a plan to combine with retailer Urbn Leaf and producer and distributor Loudpack to form a new company, StateHouse, with gross revenues of $165 million in the nine months through September. The proposed StateHouse company will have 15 retail locations; brands including Fuzzies, Kingpen, Smokiez, and Dime Bag; manufacturing capacity for $400 million worth of branded product; and 36,000 pounds of cultivation capacity, with 22,000 additional pounds of capacity expected in the near-term. Urbn Leaf CEO Ed Schmults will serve in the same role at StateHouse, while Loudpack CEO Marc Ravner will become president and Harborside chairman Matthew Hawkins will chair the new company.
•Moncton, New Brunswick-based Organigram reported results for the three months ended August 31, during which net revenue grew 22% sequentially to $24.9 million. The company’s market share in Canada grew to 7%, up from 5.4% the quarter before, driven by a range of new products it launched in the period including Edison Jolts, a line of THC lozenges. Increased revenue came from gains in adult-use sales that were partially offset by losses in medical and international revenue. Organigram logged a net loss of $25.9 million, a 33% improvement from the prior quarter.
•Draft legislation to legalize cannabis is circulating among Mexican lawmakers with plans for a vote on the bill before December 15. The bill would legalize purchasing and possessing up to 28 grams of cannabis and six plants for personal cultivation, as well as establish the government office inside the Ministry of Health responsible for regulating the new industry. Senate Majority Leader Ricardo Monreal Avila said there is an agreement among congressional leaders to prioritize the issue, sentiment which follows several years of failed attempts at consensus on the terms of legalization, which has been spurred by Mexico’s Supreme Court deeming prohibition unconstitutional.
•New Mexico appointed Kristen Thomson as director of the Cannabis Control Division, the new government office within the state’s Regulation and Licensing Department responsible for developing the framework for its forthcoming recreational cannabis industry. Thomson joins from Denver, Colorado-based cannabis retailer The Green Solution, which was acquired last year by Columbia Care. She has prior experience as a lobbyist working on cannabis policy. New Mexico has set a goal of beginning retail sales by April 2022.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.