Hi,

A new poll showed that 37% of people consider themselves cannabis consumers and 65% of Americans have used cannabis at some point in their life. While consumers are loving cannabis, venture capitalists are taking a tolerance break. We’ll welcome them when they’re ready for another puff. ;)

New Jersey recently took the refreshing step of treating cannabis businesses like traditional ones, offering them a break claiming expenses on state taxes. This is in stark contrast to the U.S. federal government's approach. Despite being labeled as illegal, these cannabis businesses are burdened with the infamous IRS Section 280E, costing an extra $1.8B by limiting the expenses that cannabis brands can claim, according to a recent analysis. This feels like an absurd paradox - it's like the government saying "Bank robbery is illegal, but if you happen to rob one, remember to send us 30%". Actually upon research, the tax code states:

“Stolen property- If you steal property, you must report its fair market value in your income…” and “Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040…” It feels like the IRS is operating with a 'mafia-style' model - “If you’re going to do illegal activities on Uncle Sam’s turf, Uncle Sam’s going to need a cut!”

Feel free to subscribe to our Cannabis or CBD News Roundups.

Have a stupendous week!
Jessica

05/08/23
SLANG Worldwide (OTCQB: SLGWF) loses cannabis trademark case as Trademark Trial and Appeal Board upholds Controlled Substances Act.
Curaleaf (OTC: CURLF) suffers a loss of over $300M in 2022, while Green Thumb Industries (OTC: GTBIF) posts a profit of $12M in the same period and $9M in Q1 2023.
Innovative Industrial Properties (NYSE: IIPR) posts nearly $41M profit in Q1 2023, an 18% increase YoY.
NewLake Capital (OCTQX: NLCP) revealed a minor decrease in Q1 revenue due to nonpayment from a tenant, yet saw a 12.3% YoY increase, with Q1 revenue at $11.4M.

05/09/23
Ascend Wellness Holdings (CSE: AAWH.U) (OTCQX: AAWH) reports a 34% YoY revenue increase to $114.1M in Q1 2023, despite $18.5M loss. New CEO, John Hartmann, announced.
Chicago Atlantic Real Estate Finance sees slight Q1 2023 net interest income growth. Company attributes success to strategic portfolio investments.
Cronos Group (Nasdaq: CRON) (TSX: CRON) reports a drop in Q1 2023 revenue by nearly 20% YoY to $20.1M. The company cites fewer cannabis flower sales in non-U.S. markets for the decline.
Weedmaps (Nasdaq: MAPS) loses $3.9M Q1 Despite Increase a 12% Increase in Clientele.

05/10/23
Trulieve Cannabis (CSE: TRUL) (OTCQX: TCNNF) reports Q1 net loss of $64M despite $289M retail revenue.
Verano Holdings (CSE: VRNO) (OTCQX: VRNOF) reported a 12% YoY revenue rise to $227M, despite a net loss of $9M.
Urban-Gro Inc. (Nasdaq: UGRO) saw a 20% dip in Q1 2023 revenue, but maintained a positive outlook.
Village Farms (Nasdaq: VFF) saw its Q1 revenues fall by 8% to $64.7M, missing analyst estimates. However, its Canadian cannabis business experienced a 40% YoY growth.
AFC Gamma (Nasdaq: AFCG) reported a 16% decrease in Q1 net income, down to $10M. The company also noted some clients struggling with payments.
Schwazze (OTCQX: SHWZ) (NEO: SHW) reported a profitable Q1 with $1.7 M, a significant turnaround from a $26.8M loss in Q1 of 2022.

05/11/23
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported a Q1 2023 loss of $19.2M, despite a 43% YoY revenue rise, due to the finalization of the Gage acquisition.
Leafly Holdings (Nasdaq: LFLY) saw a Q1 2023 loss of $5.4M and a 1.5% decrease in revenues to $11.2M, despite staff reductions.
Lowell Farms (CSE: LOWL) (OTCQX: LOWLF) posts a Q1 2023 loss of $4M, alongside a 39% YoY revenue drop. CFO Brian Shure stepped down.
Nova Cannabis (OTCQB: NVACF) improved Q1 2023 financial metrics with a 20.8% revenue increase and less net loss. They launched a partnership with SNDL Inc.