Montana Supreme Court dismisses challenge to adult-use legalization ballot measure
The Montana Supreme Court rejected a last-minute legal challenge to remove an adult-use legalization initiative from the November ballot. Filed by a group called Wrong for Montana, the lawsuit made the case that taxation and regulation measures in the initiative were in violation of the state’s constitution. The Montana Supreme Court’s rejection was due to the petitioners failing to establish why the case had to move through the state’s highest court instead of the lower trial and appeals courts first.
According to a recent Montana State University (MSU) poll, voters appear likely to approve two marijuana legalization initiatives come this November. Analysts at MSU commented, “Right now, 49 percent of respondents overall indicate they will vote to legalize—a 10-point lead over those indicating they will not.” The survey found that 39% of respondents would oppose it, while 10% are still undecided. A University of Montana study estimates that the first year of recreational legalization could generate over $215 million in sales.
Harvest Health increases deal offering to $40 million (HRVSF)
U.S. MSO Harvest Health & Recreation Inc announced that it had completed bought deal financing valued at $40 million, after an initial deal of $30 million. A group of underwriters, led by Eight Capital, agreed to purchase approximately 17.7 million units of the company valued at $2.26 each. The units were comprised of one subordinate voting share and one-half of a warrant that can be exercised for another voting share valued at $3.05. The net proceeds of the offering are expected to be used for working capital and general corporate purposes. The company’s OTCMKTS-listed shares fell ~17.4% on Thursday.
Portland, ME removes 20-store cap
The Portland City Council has voted to amend its marijuana ordinance and remove the 20-store cap on the city. The city faced a legal issue relating to its licensing criteria after a federal judge ruled that the city’s plan to give prefer to locally owned businesses was unconstitutional. The city council voted to license all applicants that meet the city’s requirements, which could potentially see 34 dispensary licenses being issued – the Portland Press Herald made the point that 34 dispensaries would be higher than what Denver has a per capita basis. Portland residents will have the chance to vote on lifting the cap on marijuana dispensaries on Nov. 3.