MJBizMag September 2022 - 18

COMPANY NEWS U.S., Canada & International
Riverview Farms of Salinas will
pay about 600 people an average
settlement amount of $887 each.
The company didn't admit fault
after being accused by a former
employee of avoiding overtime pay
by falsifying time reports.
Agricultural workers are generally
exempt from overtime requirements
under federal labor law.
However, the marijuana industry
operates out of compliance with
federal law, leaving employment
regulations to state authorities.
Former Riverview employees who
worked between 2015 and 2019
have been notified and will receive
payments starting in November.
Akerna Closes $10 Million
Public Offering
Cannabis
technology
company Akerna
closed a public
offering of shares and share
purchase warrants, raising gross
proceeds of roughly $10 million for
debt servicing and other purposes.
The Denver-based producer
of marijuana industry software,
including MJ Freeway, is pursuing a
financial restructuring plan amid a
going-concern warning.
Net proceeds from the $10 million
offering will be used " for general
corporate purposes, including
servicing our ongoing debt
obligations under our convertible
notes, working capital, marketing,
product development and capital
expenditures, " Akerna said in a
news release.
Retailer Must Repay
Staffers $33K in Tips
A marijuana retail chain in
Massachusetts must repay $33,000
in tips that were illegally withheld
from employees at two of its stores.
INTERNATIONAL DEVELOPMENTS
High Tide to Acquire
Choom Stores
Calgary, Albertabased
adult-use
marijuana retail
chain High Tide
announced a deal
to acquire nine
stores from Choom
Holdings, including six in Alberta,
two in British Columbia and one in
Ontario, amid a consolidation trend
in Canadian cannabis retail.
The acquisition, $3.9 million
(CA$5.1 million) in High Tide shares,
comes after financially distressed
Choom was granted creditor
protection in April.
Separately, High Tide announced
a bought-deal public offering worth
$7.7 million as it waits for a pending,
18 September 2022 | MJBizMagazine
nondilutive financing deal to close.
High Tide also is offering some
employees temporary pay bumps
to improve staff retention and
help front-line workers weather
inflationary pressures, MJBizDaily
reported.
The payment will be equivalent
to 78 cents per hour and will be
paid to retail and warehouse
employees at the company's Valiant
Distribution and Canna Cabana subsidiaries.
The program is anticipated
to last until May 2023.
Canadian Retailer Issues
Share Offering
Canadian
marijuana
retail chain
Nova Cannabis announced an
at-the-market share offering to
issue as much as $15.5 million worth
of shares over time.
The shares would be sold at
prevailing market prices at the
time of issuance, the Edmonton,
Alberta-based retailer said in a
news release.
Nova intends to use proceeds
from any share offerings " to finance
future growth opportunities
including acquisitions and
investments, to finance our
capital expenditures, to reduce
our outstanding indebtedness,
for working capital purposes or
for general corporate purposes, "
according to a prospectus
supplement.
Nova is majority-owned by
cannabis producer Sundial
Bud's Goods & Provisions and
its CEO, Alex Mazin, were cited
by the Massachusetts attorney
general's office for breaking a state
law that prohibits employers from
taking tips given to workers.
The tips were allegedly kept
from employees at Bud's outlets in
Abington and Worcester and given
out at management's discretion for
meals while working or store credit.
Michigan Marijuana
Retailer Closes Four Stores
Michigan marijuana retailer Lume
Cannabis, which aspires to have
100 stores by 2025, closed four of
its roughly 30 stores in the state
but said it plans to open three in
more populated areas, including
Ann Arbor and Grand Rapids.
The Troy-based company, which
employs roughly 1,000, said its
stores would number 32 after the
closures and additional openings.
MJBizMag September 2022

Table of Contents for the Digital Edition of MJBizMag September 2022
