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Cannabis MSO MariMed CEO’s sudden death shows need for succession plan

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Mere months before Robert Fireman died suddenly in December, the co-founder and former CEO of Massachusetts-based MariMed shook up the cannabis company’s management team and created a succession plan.

Doing so would prove to be prescient.

After MariMed hired Susan Villare as chief financial officer in May 2022, former CFO and co-founder Jon Levine briefly moved to the role of chief administration officer.

“Then we decided that I would be better off as president of the company, which put me in a position where I can help prepare for any type of succession plan if necessary – not based on Bob’s health,” Levine said in an interview with MJBizDaily, “but based upon the fact that we had to look at all roles in the company and what succession plan would be at all times so that you’re not caught off guard.”

Fireman, who had served as board chair and CEO of the multistate operator since 2017, died on Dec. 11 from complications of a respiratory illness. He was 74.

Image of Jon Levine
Jon Levine

Levine, who turns 58 on March 21, was appointed interim CEO of MariMed, which has operations in Illinois, Maryland, Massachusetts, Missouri and Ohio.

In March, Levine accepted the role on a full-time basis, and Edward Gildea was appointed board chair.

“It actually worked to our advantage because we took that initiative,” Levine said.

“We were fully prepared to make a smooth transition from Bob’s leadership to mine.”

MariMed’s story serves as a lesson to the cannabis industry about the importance of having a succession plan in place.

A 2021 survey by the Society for Human Resource Management showed that 56% of the members surveyed said their organization didn’t have a succession plan.

In addition, 24% of those surveyed said their organization’s succession plan was an informal one.

Startups and succession planning

MariMed, which trades as MRMD on the Canadian Securities Exchange and over-the-counter markets, isn’t the first cannabis company to experience tragedy.

Brett Roper, the co-founder and interim CEO of Denver-based Medicine Man Technologies (which now operates as Schwazze), died suddenly at the end of 2018.

Co-founder Andy Williams was appointed interim CEO in Roper’s place.

Roper had asked the board to start looking for a new CEO in June 2018 because he was planning to transition to a semiretired role.

Justin Dye took over as chair and CEO in 2019, and Williams departed the company in 2020. (A Schwazze spokesperson declined to comment because new management has since taken over.)

In early 2021, Keegan Peterson, the 33-year-old founder and then-CEO of Denver-based payroll and human resources software company Wurk, died suddenly.

Scott Kenyon, formerly the executive chair and a board member of the privately owned company, took the helm of Wurk shortly after.

A 2020 Harvard Business Review story highlighting the need for succession plans at the height of the COVID-19 pandemic notes that smaller companies and startups are particularly vulnerable to losing key leaders.

The thought processes and strategies of founders as well as the niche expertise and skills of management can be crucially valuable and irreplaceable.

“Moreover, when the pool of internal executives is small, boards need to think creatively about back-up plans and ways to divvy up critical responsibilities to ensure business continuity,” one director told the authors.

MariMed reports strong results

While it was a surprise to have to implement its succession plan so quickly after creating it, MariMed’s leadership transition has gone as well as can be expected.

“We’re one of the most profitable and well-managed companies in the cannabis industry,” Levine said.

“We continually have positive cash flow and income. It’s not common in this industry to be able to do that, and that’s because we ran everything lean and mean.”

Last week, the company reported that its revenue grew from $121.5 million in 2021 to $134 million in 2022.

Gross margin was down to 44% in the fourth quarter compared with 50% in the same period in 2021.

In 2022, MariMed’s net income was more than $13.6 million, up from $7.6 million in 2021.

Levine was already intimately familiar with the operations and strategy of the company, having co-created it with Fireman.

The business plan – which included expanding operations in Maryland and negotiating a $35 million loan – was already in place.

Levine describes the late Fireman as his “brother” and said the two business partners and friends balanced each other out, bringing different skills to the table.

Fireman, a former attorney, brought a sharp eye to reviewing documents and legal negotiations.

Levine, who overcame dyslexia growing up, is now working to bring the same level of diligence Fireman would have.

In his closing remarks during MariMed’s latest earnings call, Levine said he’ll honor Fireman’s legacy by staying committed to the family-like culture of the company.

He even compared MariMed to a “Cinderella team” in the NCAA basketball tournament – that is, an underdog that could ultimately rise above the competition.

“I watch our team every day, and I know that we have what it takes to win the championship,” he said.

“In all seriousness,” Levine said, “assuming no delays, 2023 should be another year of accelerating revenue growth, with 2024 reflecting the full impact of all investments we made over the past two years.

As Bob always said, I would encourage you to continue watching the MariMed story.”

Source: https://mjbizdaily.com/marijuana-mso-marimed-ceos-sudden-death-shows-need-for-succession-plan/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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