The Daily Hit: May 16, 2024

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

On the Site

Biden announces ‘monumental’ shift to formally reschedule marijuana

President Joe Biden on Thursday confirmed that the Drug Enforcement Administration will be pursuing a proposed rule to reschedule marijuana, calling the move “monumental” in a video posted to social media. Read more here.

Washington D.C. cannabis gray market transition, crackdown continuing

An ongoing expansion of the Washington, D.C. medical marijuana market that’s intended to legitimize many of the district’s longstanding “gifting” operators is still very much underway, along with a parallel crackdown on gray market marijuana shops that have not made any attempt to obtain city business licenses. Read more here.

cbdMD loss widens as sales slump in the second quarter

North Carolina-based cbdMD Inc. (NYSE: YCBD) reported a wider loss for its fiscal second quarter ending March 31, as sales slumped and the company recorded certain one-time charges. Read more here.

Nature’s Miracle closer to snapping up struggling Agrify

Nature’s Miracle Holding Inc. (NASDAQ: NMHI) and Agrify Corporation (Nasdaq: AGFY) are merging in an all-stock deal that will see the California-based indoor farming tech company acquire its smaller, cash-strapped rival at an equity valuation of around $6.4 million. Read more here.

Rubicon banks on vape launch to offset lackluster first quarter

Canadian cannabis producer Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) reported flat revenue and a swing to a loss in the first quarter, citing seasonal weakness and lingering consumer pessimism as dampening factors. Read more here.

Marijuana is made musical at new Berkley dispensary in Michigan

A new cannabis dispensary in Oakland County promises to create an experience that immerses customers in marijuana’s musical connections. Read more here.

Cresco Labs warns of initial supply hiccups ahead of Ohio launch

One of the largest multistate cannabis operators in Ohio is warning that the accelerated recreational market timeline could lead to supply shortages out of the gate. Read more here.

In Other News

Cannabis stocks

Cannabis stocks including Tilray (TLRY.O), Curaleaf (CURA.TO), and the AdvisorShares Pure US Cannabis ETF (YOLO.P) rallied on Thursday after the U.S. Department of Justice unveiled a historic proposal to ease restrictions on marijuana. Read more here.

CV Sciences

CV Sciences Inc. (OTCQB:CVSI) has consummated its purchase of Elevated Softgels, LLC, a leading manufacturer of encapsulated softgels and tinctures for the supplement and nutrition industry. Read more here.