SYDNEY, Australia, Aug. 23, 2022 (GLOBE NEWSWIRE) --  Tilray Brands, Inc. ("Tilray" or the "Company") (Nasdaq: TLRY; TSX: TLRY), a leading global cannabis-lifestyle and consumer packaged goods company, today announced that its medical cannabis division, Tilray Medical, has received approval and verification from The Natural Health Science Foundation ("NHSF") of its flagship product, Tilray Purified Oral Solution (“OS”) CBD100, to be used in clinical trials in Australia and New Zealand.

Denise Faltischek, chief strategy officer and head of international, Tilray Brands, said, “The NHSF (Natural Health Science Foundation) Quality and Equivalency test approval is a testament to the high standards Tilray Medical upholds across all international cannabis markets. As Tilray continues to grow, we are extremely proud to be recognized as a trusted cannabis partner and for the quality standards we deliver for patients worldwide.”

George Polimenakos, general manager, Tilray Medical ANZ (Australia and New Zealand), noted, "We are extremely pleased with this outcome and proud to provide EU-GMP certified products to patients in Australia and New Zealand. Having our product quality validated by the NHSF demonstrates Tilray's commitment to delivering the highest quality cannabis products to our patients.”

The NHSF is an independent not-for-profit organization that assists patients, consumers, and healthcare professionals in making informed natural medicine choices based on robust science. NHSF believes natural medicines will be valuable in modern scientific medical practice if they follow best practices of quality, safety, and efficacy through transparency and evidence.

Nigel Pollard, chairman, Natural Health Science Foundation, said, "Tilray Purified OS CBD100 has been thoroughly assessed by independent experts and has met the Quality & Equivalence standards of the Natural Health Science Foundation. This means the product has a basis of reproducibility which serves as a valid medical intervention, from a scientific point of view, for patient use and to test in a clinical trial."

In addition to the approval received from the NHSF standard of scientific reproducibility for clinical trials, the New Zealand Ministry of Health has verified that the Tilray Purified OS CBD100 has met its quality standards to ensure consistency of the products that medical practitioners prescribe to their patients.

WOBURN, MA — PRESS RELEASE — Bloom Automation Inc., an agri-tech company specializing in cannabis trimming equipment, today released the Bloom Artificial Intelligence Engine 2.0—a suite of new algorithms that visually analyze cannabis flowers for faster, more accurate machine trimming.

The AI software update makes Bloom’s robotic cannabis trimming system twice as fast as human trimmers and creates possibilities for other identification-related tasks such as defoliation, harvest weight prediction, and flower bucking.

“We’re excited to announce Bloom’s 2.0 AI Engine for more reasons than one,” said Jon Gowa, CEO and founder of Bloom. “The new AI increases the speed of our machine while also opening the door to support a wide range of third-party applications and equipment.”

The AI performance leap is powered by a confluence of machine learning advances and an ever-expanding database of images collected through years of R&D. Updates to the system’s graphics processing unit (GPU) also enabled the update.

The Bloom trimming system works by manicuring the flowers before their removal from the stem using a robotic arm and cameras to visualize which leaves to remove. The machine shears the leaves cleanly and prevents the overhandling common to traditional, hand-trimming methods.

Cannabis Conference 2022 begins today in Las Vegas. It’s the sixth annual event produced by Cannabis Business Times, and this year’s educational and networking opportunities come at a critical time in the industry.

Backed by an award-winning magazine and a team of talented writers, editors and designers, Cannabis Conference is the only North American conference focused exclusively on plant-touching operators. The event is guided by an advisory board comprising cultivation and dispensary experts, and features more than 40 education sessions led by more than 90 industry experts. Cannabis Conference 2022 also includes a sold-out expo floor showcasing more than 170 technology and solutions providers that serve cannabis cultivation and dispensary businesses.

Registration opens at 8 a.m. PT today, Aug. 23. Starting at 10 a.m. PT, All-Access Pass registrants will gain special admission to pre-show workshops on a variety of topics, including new product trends, university research, business development and more.

Chris Conrad and Mikki Norris, legendary human rights activists, will provide the keynote address this afternoon. Their tireless work since the late 1980s has been instrumental in educating people around the world about the benefits of cannabis and hemp legalization—and they will share the story behind their reform efforts.

Tomorrow, Merida Capital Holdings Managing Partner Mitch Baruchowitz will provide the Day 2 keynote: “From Pioneering Founder to Foundational Investor: Mitch Baruchowitz Shares Crucial Strategies for Building a Successful and Long-Term Cannabis Company.” Merida has deployed more than $275 million, and has some $450 million in assets under management across the cannabis ecosystem.

Additional Cannabis Conference 2022 speakers include Chris Ball, Wendy Bronfein, Kim Eastman, Chima Enyia, Bob Groesbeck, Jesce Horton, Rezwan Khan, Claudio Miranda, Mojave Richmond, Anna Shreeve, Hope Wiseman and many more leaders from across the industry!

Retail sales data provider BDSA has reported that monthly sales growth in New Jersey’s adult-use market has outpaced that of other adult-use markets tracked by the firm.

The state’s market is succeeding despite having a lower per capita retail count compared to other adult-use markets, according to a press release from BDSA.

The Oregon Liquor and Cannabis Commission (OLCC) is continuing to voice concern about product integrity in the state’s cannabis market.

A new poll conducted by The Dallas Morning News and The University of Texas at Tyler indicates wide support for both medical and adult-use cannabis legalization.

Out of polltakers, 72% stated they either “strongly support” or “support” the legalization of medical-use cannabis in Texas, while 20% stated they “strongly oppose” or “oppose” it.

When asked their opinions about legalization of adult-use cannabis in Texas, 55% of respondents said they “strongly support” or “support” it, while 35% of respondents either “strongly oppose” or “oppose” it.

Texas has a limited medical cannabis program, restricted to only tinctures, edibles and topicals, and those products have a 1% THC weight limit. An additional regulatory restriction is that the vertically integrated cannabis companies operating in the state can only store their inventory overnight at one facility where they must cultivate, process and manufacture all their product.

Beto O’Rourke, Democratic nominee for Texas governor, tweeted in response to the Houston Chronicle’s reporting on The Dallas Morning News/UT Tyler poll:

We are going to legalize marijuana in Texas while generating nearly $1 billion a year in new revenue and savings. https://t.co/BW1jyKkEv4

I had no idea what I was getting myself into back in 2014 when I decided to pursue a dispensary license. Legal cannabis was new on the East Coast, and much of the red tape that I experienced was unique to that market. Without a blueprint, we gained experience through trial and error when establishing Mary & Main in Maryland. Here are 7 things I wish I had known about opening a cannabis dispensary, and important lessons I learned through the process.

1. Investors expect even new-stage businesses to show up with value.  

Develop your business strategy in a way that can easily be communicated to potential stakeholders. One of the biggest mistakes that many entrepreneurs make in early stages is to overvalue the license before they have a proven successful management history. Cannabis is becoming an increasingly more sophisticated industry, and investors are following suit. They are savvier on industry nuances and are looking to back companies with a proven track record and a reliable management team. This means that new-stage businesses should look to present themselves with as much value as possible. This will allow you to raise money in stages and maintain control of your business, especially early on.

2. Applications require careful organization and attention to detail.

Going through an application process can be very tedious and mentally exhausting.

The first is to stay organized. This may seem obvious, but as you put these packages together, you will find that they can range from 500 to 1,000+ pages of work, and that doesn’t just include written sections. Much of the application will include collecting sensitive paperwork (most of which will likely need to be notarized) from all the members of your team, your investors, and any affiliates of the company. This will all need to be organized in a specific order and oftentimes labeled in a specific way.                                                                

As you are collecting personal documents and information from multiple team members and vendors while working on responses in different documents, it becomes very difficult to keep track of everything. Due to the large number of applicants and the nature of the competitive process, your application is at risk of not being scored when even the smallest details of the submission process are not followed, so attention to detail is key.

Lastly, go all out with your application package. For example, if you can illustrate what you are describing in a section, add in a picture. If you can format your documents with your company branding, do it. The variety and illustrations can help your application stand out.

Bethesda, MD, August 22, 2022 -- PRESS RELEASE -- CULTA, Maryland’s top producer of craft cannabis, today announced a partnership with Old Pal. Founded in 2018, Old Pal is a multi-state cannabis lifestyle brand that’s focused on offering quality products and trusted consistency. The company focuses on value and targets consumers that are specifically looking for high-quality, fairly priced cannabis products.

“Old Pal has a proven track record of making cannabis accessible and we're excited to find new partners to serve every need of the Maryland medical patient community," said Allison Siegel, CEO at CULTA. "We believe our fresh flower and their easy-to-dose design are a winning combination."

Currently available in eight states, including Maryland, Old Pal focuses primarily on producing high-quality, beautiful cannabis at a price point that isn’t cost-prohibitive to the general public. Once the Old Pal founders began to feel pushed out of a market that was only getting more expensive, the concept of Old Pal’s always affordable flower was officially born.

“Our partnership with CULTA is the first time our cannabis will be available to medical cannabis patients in Maryland,” said Rusty Wilenkin, CEO at Old Pal. “Through this partnership, Maryland patients will have exclusive access to Old Pal’s flower and our Ready to Roll packs are a great introduction to our ethos.”

As part of the Old Pal x CULTA partnership, CULTA will release a 14g Ready to Roll bag. These convenient packs have everything a medical patient needs to roll their own cannabis. Each kit will include 14g of high-quality, pre-ground cannabis, hemp rolling papers, and a crutch. The packs are resealable so patients can keep their medication fresh and are available in indica, sativa, and hybrid. And, true to the Old Pal mission statement, the Ready to Roll bags are competitively priced.

“This is actually my favorite Old Pal product,” said Wilenkin. “So it only makes sense that this is the product we’d go to market with in Maryland. Our pre-ground flower is great for so many reasons. The flower is coarsely ground and easy to use, especially for patients with arthritis since there’s no need to use a grinder. We’re excited for new patients in Maryland to try our products.”

CULTA, a medical cannabis operator in Maryland, announced this week a partnership with Old Pal, a multistate cannabis lifestyle brand.

CULTA CEO Allison Siegel says the partnership will allow the company to bring high-quality cannabis products to Maryland’s patients, as well as a new product offering: Old Pal’s “Ready to Roll” kit, which includes a half ounce of pre-ground CULTA flower in a resealable pouch, as well as crutches and unbleached hemp rolling papers.

RELATED: ‘Branding Is Your Image’: How CULTA Approaches Cannabis Marketing in Maryland’s Medical Market

Here, Siegel shares additional details about CULTA’s collaboration with Old Pal and how it will benefit both companies, as well as Maryland’s patients.

Photo by Jill Jasuta

SiegelMelissa Schiller: What attracted CULTA to Old Pal as a potential partner? Why was the partnership a good fit for CULTA?

Allison Siegel: We are always on the lookout for partnerships that will allow us to bring high-quality cannabis products to the Maryland medical market. We met, hung out and negotiated with Old Pal. We knew of the success of their products in other markets but wanted to really get to know them as people and as a partner. Through the process, we continued to feel they were good business partners and, more importantly, great people. Above all else, this is what attracted us to the Old Pal team and made them a good fit for CULTA.

On Aug. 17, the Cannabis Regulators of Color Coalition (CRCC) held an online panel to elaborate on a recently released paper expressing the group’s opinion that, if not changed, the SAFE Banking Act and related legislative provisions will perpetuate or worsen equity issues in cannabis. 

The CRCC partnered with The Ohio State University’s Drug Enforcement Policy Center at the Moritz College of Law to host the event, held via Zoom, presenting their case on the shortcomings of SAFE Banking language to date and offering ten suggestions on how it can be improved to promote equity in both cannabis and finance.

The diverse group of high-ranking cannabis officials debunked some commonly held beliefs about SAFE Banking, backing their conclusions with data and firsthand experience leading state and city cannabis programs. 

“It’s often claimed that SAFE Banking is being passed for equity,” said Cat Packer, former Executive Director of the Los Angeles Department of Cannabis Regulation. “The reality is that the act has been passed seven times but hasn’t mentioned equity once.”

Flaws in Existing SAFE Banking Provisions

The CRCC’s position acknowledges the potential benefits of SAFE Banking, though their paper points out that it might not even be needed: despite hundreds of financial institutions already providing services to cannabis businesses, to date only one credit union has been penalized by enforcement actions.

Their position against the bill comes down to one main idea: the financial services industry has a long history of racial disparity, so there’s no reason to expect it to change without explicit direction. Since proposed cannabis banking protections don’t force financial institutions to work with cannabis companies and leaves decisions about loan eligibility to their discretion, providing safe harbor may only worsen racial inequity in the cannabis industry. 

The choppy road to launching adult-use cannabis sales in Montclair, N.J., finally smoothed out for Ascend Wellness Holdings (AWH) on Aug. 19.

The New York-based multistate, vertically integrated operator announced that its existing medical dispensary at 395 Bloomfield Ave. officially began commercial sales for adults 21 and older, becoming the 18th retail facility in the state to do so.

While Ascend’s Montclair store is open from 8 a.m.-8 p.m. daily, it has specific medical-only hours reserved for patients—as mandated by state regulators—and adult-use customers will require an appointment to visit during the initial launch.

The company’s announcement comes nearly four months after Ascend launched adult-use sales at its Rochelle Park, N.J., location on April 21, when it was among six other companies to get the nod from the state’s Cannabis Regulator Commission (CRC) to expand operations.

“After an incredible adult-use launch in Rochelle Park, the Ascend New Jersey team is thrilled to bring that same energy and enthusiasm to Montclair,” AWH President and co-founder Frank Perullo said in an Aug. 19 press release.

“New Jersey is already showing signs of a booming adult-use market, and Ascend has proactively scaled our operations and staffing to serve our customers’ specific needs in the state,” he said. “We are grateful for the support of the Montclair community and cannot wait to share the Ascend experience with the people of Montclair and the surrounding towns.”

Steven Hawkins is no longer the CEO at the US Cannabis Council (USCC), a leading voice for ending the federal prohibition of cannabis.

In a 3:30 p.m. news dump on Friday, the organization announced that Khadijah Tribble, the senior vice president of Corporate Social Responsibility at multistate cannabis operator Curaleaf, is now the new CEO at USCC on an interim basis. 

USCC officials did not reveal whether Hawkins will be serving in a new capacity at the organization (or if he departed entirely) in a press release that was distributed to media members. Hawkins led USCC as CEO since its founding in February 2021.

Cannabis Business Times reached out to USCC for clarity on Hawkins’ involvement with the organization but did not immediately receive an answer.

“We thank Steven Hawkins for his integral role in launching USCC, and we are thrilled to welcome Khadijah Tribble to the role of CEO at this critical juncture for the cannabis industry,” Jessica Billingsley, chair of USCC and CEO of Akerna, said in a press release.

At Curaleaf, Tribble serves as a subject matter expert and strategic counselor to internal team members, investors and external partners in the areas of diversity, equity and inclusion (DEI), social equity, environmental sustainability and strategic partnerships.

Zen Leaf Clarksburg is located at 254 Emily Drive, a busy thoroughfare with an average daily traffic count of 17,520 vehicles1The dispensary is based in Harrison County, which has a population over 65,0002Verano’s active operations span 13 states, comprised of 111 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity

 

CHICAGO, Aug. 19, 2022 – PRESS RELEASE – Verano Holdings Corp., a leading multistate cannabis company, announced the opening of Zen Leaf Clarksburg on Aug. 19, 2022, the company’s fourth dispensary in West Virginia and 111th nationwide. Zen Leaf Clarksburg, located at 254 Emily Drive, is open 11 a.m.-7 p.m. Wednesday through Saturday and 10 a.m.-4 p.m. Sunday.

Zen Leaf Clarksburg joins Verano’s three additional West Virginia Zen Leaf locations in Morgantown, Westover and Wheeling. According to West Virginia’s Office of Medical Cannabis, there are currently over 11,400 approved medical cannabis patients in the state.

“We’re excited to open Zen Leaf Clarksburg, our fourth dispensary in West Virginia, to continue serving the state’s growing medical cannabis community,” Verano founder and CEO George Archos said. “With the addition of Zen Leaf Clarksburg, we are now well-positioned to serve patients in central West Virginia, and look forward to welcoming the medical cannabis community to experience our patient-centric hospitality and care.”

Across West Virginia, Verano has permits issued by West Virginia’s Office of Medical Cannabis to operate a cultivation and processing facility, along with seven total medical cannabis dispensaries that are projected to continue opening in 2022 and 2023, subject to customary approvals.

APOPKA, Florida, Aug. 19, 2022 - PRESS RELEASE - Sanctuary Cannabis announced the opening of its 11th medical cannabis dispensary in Florida.

As the first Sanctuary dispensary north of Orlando, Sanctuary Palatka will be holding its grand opening celebrations on Aug. 18-19. The 1,000-square-foot facility is tucked into the Palatka Marketplace and was converted into a state-of-the-art dispensary following a full interior renovation planned and executed by Vantage Builders. It is located at 839 S State Road 19 in the western part of Palatka and at the intersection of 19 and State Rd. 20.

"After a string of openings further south and on the east coast of the state, it's exciting to make inroads north of Orlando," said Jason Sidman, CEO of Sanctuary Medicinals. "We're proud to have been the first MMTC to open its doors in Palatka, and we're eager to begin serving the patient community and demonstrate the value we can and will add to the community at large."

Sanctuary Palatka is now open and located less than three miles west of the St. John's River at the intersection of SR 19 and SR 20. Within walking distance of St. Johns River State College and down the road from both Putnam Hospital and the Palatka Municipal Airport, Sanctuary Palatka will be able to serve patients from within city limits as well as the surrounding communities in Putnam County, including East Palatka, Crescent City and Keystone Heights. With two locations slated to open in Jacksonville before the end of 2022, Palatka represents a key step north in Sanctuary's larger plans for statewide expansion.

"From the outset, the goal for Sanctuary Cannabis has been statewide expansion in Florida," said Bill Dewar, chief operating officer. "After establishing footholds in the Orlando and Tampa areas as well as down the east coast, it feels significant to finally open our first location north of the original Orlando dispensary, and we're eager to capitalize on being early to the game in Palatka," Dewar added.

A grand opening event will be held Aug. 18-19 and the dispensary will be keeping its usual hours of operation from 10 a.m. to 8 p.m. on both days. Patients can stop in and shop throughout both days, and all patients–new or registered–will receive a 50% discount.

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PHOENIX, Arizona, Aug. 18, 2022 - Press Release - Item 9 Labs Corp., a vertically integrated cannabis dispensary franchisor and operator, continues to make significant headway toward solidifying its spot as a leader in the North American cannabis retail landscape with its cannabis retail franchise, Unity Rd. 

This past July, the company's dispensary franchise, Unity Rd., worked with local entrepreneurs to open a non-tribal, state-licensed medical cannabis establishment in South Dakota.

With Item 9 Labs Corp.'s merger and acquisition activities ramping up and expansion into new cannabis markets underway, the company anticipates its development pipeline will remain strong through the end of the year. It expects to open additional new stores across the country and assist its franchisees in acquiring existing dispensaries across the U.S. 

"Our highly scalable retail model offers local entrepreneurs expert guidance and a roadmap to operating compliantly in cannabis. On a corporate level, we can rapidly expand our Unity Rd. dispensary footprint with low capital expenditure since franchisees own and operate their locations. As the Unity Rd. retail footprint develops, we are building significant value for our shareholders with the additions of multiple ongoing revenue streams," said Item 9 Labs Corp. CEO Andrew Bowden.

Unity Rd. offers eager entrepreneurs seeking to enter the complex $25 billion industry with the proven guidebook and ongoing support needed to successfully open and operate a compliant dispensary in their local community.

The company opened its first Unity Rd. franchised location in June 2021 with a father-son entrepreneur duo in Boulder, Colo., and has since grown to four stores in operation as well as a development pipeline packed with more than 20 groups who are expanding the brand across 10-plus states. The cannabis franchise's second store is currently being rebranded to Unity Rd. in Oklahoma City, Okla., and its third location opened in July 2022 in North Denver. 

Nearly five months since New Mexico launched adult-use cannabis sales on April 1, new projections estimate that the state will collect less in tax revenue than initially expected.

RELATED: New Mexico Adult-Use Sales Hit $1.96 Million on First Day

During Wednesday’s Legislative Finance Committee meeting, New Mexico Taxation and Revenue Secretary Stephanie Schardin Clarke told lawmakers that roughly $22.7 million generated from the state’s 12% cannabis excise tax is expected to flow into New Mexico’s general fund by the end of the current fiscal year, according to NM Political Report.

That figure is expected to increase 10.6% each year after that, Schardin Clarke said, as New Mexico’s cannabis excise tax is scheduled to increase over the next several years until it reaches roughly 20%, according to NM Political Report.

The current projection for Fiscal Year 23 is roughly $5 million less than the figure projected last December, the news outlet reported.

A unionization effort at a medical cannabis dispensary in Portsmouth, R.I., took a few rocky turns more than a year ago.

Retail workers at the Greenleaf Compassionate Care Center voted, 21-1, in April 2021 to join the United Food and Commercial Workers (UFCW) Local 328 in a milestone moment for the state’s cannabis industry: A team of budtenders, keyholders, online team members and delivery associates were the first dispensary workers in the state to unionize.

But two months later, the Greenleaf workers held a strike after the company terminated keyholder Ben Telford’s employment because his “services were no longer required.” Telford was a member of Greenleaf’s union bargaining committee and had a “very loud voice for myself and for others on the team,” he told Cannabis Business Times in June 2021.

CBT reached out to Greenleaf CEO Seth Bock at that time but never received a response.

RELATED: Greenleaf Terminates Employee Involved With Union Negotiations in Rhode Island; Worker Strike Ensues

More than six months after that—thanks to UFCW Local 328 filing charges with the National Labor Relations Board—Telford was offered a reinstatement package with back pay for lost wages.

MIAMI, Aug. 18, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) (“Ayr” or the “Company”), a leading vertically integrated U.S. multistate cannabis operator (“MSO”), is reporting financial results for the three months ended June 30, 2022. Unless otherwise noted, all results are presented in U.S. dollars.

Jonathan Sandelman, Founder and CEO of Ayr, said, “Over the past few months, we have achieved many of the key transformational milestones to operationalize Ayr’s core footprint, and we are now moving to optimize this footprint for substantial growth. We’re doing this in the face of macro headwinds from the broader economy, but it’s never been clearer that cannabis is a consumer staple that is here to stay.”

“Q2 2022 results were in line with our expectations, and we now look ahead to the second half of 2022. Our second half growth will be slower than previously expected, but the earnings power of the business remains outstanding. We continue to make investments in people and processes, while remaining prudent through these turbulent economic times. With our core operating footprint in place, the vast majority of our capex behind us, and a strong, $117 million cash position on our balance sheet, we believe that we are well-placed to weather this economic environment and emerge stronger on the other side.”

Second Quarter Financial Highlights ($ in millions, excl. margin items)

1Adjusted EBITDA, Adjusted Gross Profit and Adjusted EBITDA Margin are non-GAAP measures, and accordingly are not standardized measures and may not be comparable to similar measures used by other companies. See Definition and Reconciliation of Non-GAAP Measures below. For a reconciliation of Operating Loss to Adjusted EBITDA as well as Gross Profit to Adjusted Gross Profit, see the reconciliation table appended to this release.

Second Quarter and Recent Highlights

CHICAGO, Aug. 17, 2022 – PRESS RELEASE – Cresco Labs Inc., a vertically integrated multistate operator and the No. 1 producer of branded cannabis products in the industry, released its financial results for the quarter ended June 30, 2022. All financial information presented in this release is reported in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) and in U.S. dollars.

Second Quarter 2022 Financial Highlights

Second quarter revenue of $218 million, up 4% year-over-year.Adjusted gross profit1 of $116 million, or 53% of revenue, an increase of 8% year-over-year, excluding fair value mark-up for acquired inventory and cost of goods sold adjustments for acquisitions and other non-core costs.Second quarter adjusted EBITDA1 of $51 million, or 23% of revenue, an increase of 11% year-over-year.Wholesale revenue of $95 million, which maintained the company's position as No. 1 U.S. seller of branded cannabis products with leading share positions in the flower, concentrates and vape categories2.Achieved the leading branded share position in Massachusetts and maintained No. 1 share position in both Illinois and Pennsylvania2.Retail revenue increased 22% year-over-year, to $123 million, or $2.5 million per average store open in the quarter; same-store-sales increased 6% year-over-year.Ended the quarter with $90 million of cash on hand.On July 8, the Columbia Care shareholders approved the previously announced, all-stock acquisition by Cresco Labs and the company continues to work toward closing the transaction around year-end.

Management Commentary

"We reported solid results in the face of an unprecedented macro environment. We generated $218 million in revenue, representing 4% year-over-year growth, and maintained our industry position as the No. 1 wholesaler of branded cannabis2, the No. 1 branded product portfolio chosen by consumers2, and the No. 1 most productive per-store national retailer. Importantly, we accomplished these results while maintaining our Adjusted Gross Margin1 at 53% and Adjusted EBITDA1 margin of 23%, in a market where prices fell between 10-30% depending on the state. The Columbia Care transaction is proceeding as expected—we're checking off milestone after milestone, the divestiture and regulatory processes are on track and we continue to anticipate a closing around year end,” said Charles Bachtell, CEO and co-founder of Cresco Labs.

“We recognize the challenges currently facing the cannabis industry and the tough macro backdrop we are operating against. In this environment, we are managing through today while remaining focused on the long-game— we're holding and growing market share, driving efficiencies across the business to maintain margins, and preparing for the integration of Columbia Care to drive future growth. Over the next three years, growth will come from the transition to adult use in seven large markets: New Jersey, New York, Pennsylvania, Ohio, Virginia, Florida and Maryland. Our combined footprint with Columbia Care, gives us exposure to all of these markets and leading positions in several. This is arguably the highest value footprint in cannabis—180 million Americans and all 10 of the 10 highest projected 2025 revenue states. The acquisition more than doubles our retail footprint, gives us a No. 1 branded or retail share position in five markets, and optimizes our operational footprint. It gives us the breadth and depth that we believe ensures growth, diversifies our revenue mix and creates an industry leader,” Bachtell said.

Balance Sheet, Liquidity, and Other Financial Information

Hudson County Superior Court Judge Jeffrey Jablonski ruled July 22 to dismiss a lawsuit filed in May by residents who live above a storefront on 14th Street, N.J., that would have prevented Story Dispensary from opening. 

The lawsuit, which was filed by the  51-53 Fourteenth Street Condominium Association, claimed that “the building’s new owners misrepresented what business would be taking over the space, previously occupied by the Hudson Tavern restaurant, and sought to prevent it from opening,” TAPInto Hoboken reported.

The plaintiffs also complained about “noise, odor, loitering, security, smoking near the premises and property value impacts,” according to the news outlet.

According to the lawsuit, the plaintiffs were told that Exchange Physical Therapy Group was expected to open in the building, but the company purchased the property across the street instead, TAPInto Hoboken reported.

The judge dismissed the lawsuit without prejudice, which allows for another complaint to be filed in the future, according to the news outlet.

Martin Cabalar, the attorney representing the plaintiffs said, “The lawsuit against Story was dismissed without prejudice as not yet being ripe, in so much as the planning board has not decided whether it will approve Story’s application.”