The Daily Hit: April 16, 2024

The Daily Hit is a recap of the top financial news stories for April 16, 2024.

On the Site

Cannabis stock shorts have grown like weeds

In the last few weeks, marijuana short positions have jumped dramatically. There are now $1 billion of shorted cannabis stocks. Read more here.

Report: Virginia lawmakers say legal cannabis sales won’t start until 2027

Legal marijuana sales in Virginia won’t get under way until 2027 at the earliest, now that Gov. Glenn Youngkin has formally vetoed the Democratic bill to launch regulated cannabis sales, two Democratic lawmakers predicted during a recent webinar. Read more here.

Wana Brands founder Nancy Whiteman steps down as Canopy Growth USA moves forward

Wana Brands announced that CEO Nancy Whiteman would be stepping down from her day-to-day role at the end of May 2024 to pursue philanthropic activities and other interests. Read more here.

Nine arrests made in JuicyFields international cannabis ponzi scheme

International law enforcement agencies have arrested nine individuals in connection with the $684 million Ponzi scheme known as JuicyFields that collapsed in 2022, after victimizing about 186,000 investors. Read more here.

Green Market Report Finance Awards: LeafLink takes Best Financial Technology 

At the New England Cannabis Convention in Boston on March 22, cannabis tech firm LeafLink took home the Green Market Report Finance Award for best financial tech provider, in recognition of its payment solution services that help marijuana companies sidestep problems created by the lack of traditional banking services. Read more here.

Going concern warnings cloud Xtacy Therapeutics’ shrunk losses

Canadian-based Xtacy Therapeutics Corp. (CSE: XTCY) (OTCQB: XTCYF), formerly known as Global Wellness Strategies Inc., posted financials for the fiscal years ending Sept. 30, 2023, and 2022, showing an uphill battle to keep its doors open. Read more here.

Cleveland Record Rendezvous renovation plan includes cannabis dispensary

The dispensary would be on the first floor, with offices for the operation on the building’s second floor. A future phase would include a total of four apartments on the third and fourth floors of the 1908 vintage structure. Read more here.

Agrify confident in recovery despite major revenue decline in 2023

Michigan-based Agrify Corporation (Nasdaq: AGFY) posted a dramatic decline in revenue for both the fourth quarter and full fiscal year ending Dec. 31, 2023, despite seeing its first positive quarterly net income of $572,000 in the fourth quarter. Read more here.

Stiiizy sued over Delta-8 products in Missouri, Illinois

California-based cannabis company Stiiizy Inc. is being sued over its Delta-8 hemp products. The class-action case is being brought by Taylor Byron in Illinois and Taylor Berry in Missouri, who both claim the products are not legal hemp, but instead regulated cannabis containing more THC than allowable by law—in some instances nearly 200% more of the active ingredient, THC. Read more here.

4Front Ventures reports revenue drop as net losses rise

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) revenue fell 21% to $21 million for the fourth quarter versus 2022’s revenue in the fourth quarter. It also increased slightly over the third quarter’s revenue of $20 million. Read more here.

In Other News

Heritage Cannabis

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company“) today announced the commencement of a sale and investment solicitation process under Canadian court protection during debt settlement and asset sales. Read more here.

Illinois

Illinois’ largest cannabis business association is pushing to ban the sale of delta-8 THC, an increasingly popular psychoactive substance that’s popped up in corner stores across the country in recent years. Read more here.

Massachusetts

Cannabis social equity businesses are finally set to see an infusion of state money after years of waiting. Read more here.