The PUSH for SAFE
The NAACP Board of Directors has ratified a resolution that supports the passage of legislation giving legal cannabis businesses access to the US banking system. The resolution states that the SAFE Banking Act would allow cannabis businesses with social equity or diverse ownership licenses to better compete in the industry as well as provide fair rates and terms for these businesses. It adds that the banking measure should be coupled with the federal descheduling of marijuana as a controlled substance. The resolution also calls for social justice reforms for those arrested or convicted of marijuana offenses echoing support for the Marijuana Opportunity Reinvestment and Expungement (MORE) Act.
Ascend Gets NJ Approval.
The Fort Lee (New Jersey) Planning Board unanimously approved Ascend Wellness’s site plan for a dispensary to begin selling adult legal weed. “Ascend is excited to have received a unanimous vote at the Fort Lee Planning Board meeting this Monday,” Caitlin Fleishman, Director of Public Affairs for Ascend, said. “We hope to commence adult-use sales in the near future as we work to complete all local requirements.” Ascend Fort Lee’s application to expand to adult recreational weed sales was approved by the New Jersey Cannabis Regulatory Commission on Sept. 9, which made the necessary municipal approvals the only remaining issue. The company has targeted a fall opening for legalized recreational marijuana at the location. Ascend began adult weed sales in Rochelle Park and Montclair since the statewide launch on April 21. Fort Lee would become its third satellite store to offer it and the 20th location in New Jersey to sell adult recreational weed.
Former Louisiana Attorney General Investigates Tilray.
Charles C. Foti, a partner at Kahn Swick & Foti (KSF) and former Louisiana Attorney General, announced that they are investigating Tilray (TLRY) focusing on whether Tilray's officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws. In January 2019, the Company entered into a significant marketing agreement with Authentic Brands Group in which the Company would expand globally as ABG's preferred cannabis supplier, receiving up to almost half of the net revenue and a guaranteed $10M annual payment. On March 2, 2020, the Company disclosed a $321.2 million net loss for the year, or $3.20 per share, compared to $67.7 million, or $0.82 per share, for 2018, and "non-cash charges of $112.1 million related to the impairment of the Authentic Brands Group agreement as well as $68.6 million in inventory reserves." Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. Recently, the court presiding over the case denied the Company's motion to dismiss in part, allowing the case to move forward.
