Business
Fewer research analysts covering cannabis underscores industry woes
Cannabis industry earnings calls have been a little quieter this year.
Fewer research analysts are covering the U.S. marijuana industry, which experts say reflects the challenging economic headwinds facing the industry, including high taxes, high interest rates, rock-bottom stock prices and the slow pace of federal MJ reform.
New York-based Cantor Fitzgerald and Cowen are among the more notable financial-services firms that have dropped coverage of U.S. plant-touching cannabis companies.
“It speaks to the unhealthy state of our industry,” Jesse Redmond, the managing director of the cannabis sector and head of research at Florida-based Water Tower Research, told MJBizDaily.
U.S. cannabis stocks have taken a beating in the past 18 months.
The AdvisorShares Pure US Cannabis ETF – which tracks major U.S. marijuana stocks under the symbol MSOS – has fallen to just over $5 from a high of more than $56 in February 2021.
In addition, cannabis companies are increasingly turning to debt financing rather than equity raises, which means there’s a smaller audience for research.
Low share prices and fewer mergers and acquisitions, initial public offerings and other types of banking activities mean there’s less revenue to fund research, Redmond said.
“Without that activity, there aren’t the revenues to justify paying the person to write the research,” he said.
The recent shake-up includes:
- New York-based Cantor Fitzgerald, which has stopped covering all U.S. marijuana companies except for WM Technology, which operates the Weedmaps platform, after the departure of analyst Pablo Zuanic.
- New York-based Cowen, which was recently acquired by Canada-based TD Bank, is no longer covering U.S. cannabis companies. But analyst Vivien Azer will include the industry’s larger trends as part of her beverages, tobacco and cannabis portfolio.
- Jon DeCourcey, a former analyst covering the cannabis industry, is no longer with financial services firm BTIG, which specializes in investment banking, institutional trading and research. He is now head of investor relations at Florida-based multistate cannabis operator Ayr Wellness, according to DeCourcey’s LinkedIn profile.
Neither Cantor Fitzgerald, Cowen nor BTIG responded to requests from MJBizDaily for comment.
Many other financial-services firms are still providing coverage of U.S. plant-touching companies, such as Florida-based Water Tower Research, New York-based capital markets company Viridian Capital Advisors, Toronto-based Echelon Wealth Partners and Vancouver, British Columbia-based Canaccord Genuity.
Analysts have been ‘a little too optimistic’
When Cowen became the first big financial-services firm to initiate coverage in 2019, investors said it lent legitimacy to the burgeoning industry.
Back in 2019, both operators and service providers were optimistic that federal legalization and/or the SAFE Banking Act would be passed in Congress.
Industry officials also were increasingly hopeful that big institutional investors would take an active interest in the U.S. cannabis industry – a move that could have provided key funding to companies.
But none of that has happened.
Instead, retail investors still make up the bulk of investment in U.S. cannabis, Water Tower’s Redmond said.
And retail investors can often access research only if they pay for it or are clients of the financial-services firm producing it.
That optimism might have also bled into analyst research.
“We’ve all been a little bit too optimistic,” Redmond said.
Between price targets and predicting the passage of SAFE Banking, many analysts through the second half of 2022 underestimated the impact of factors such as high interest rates, falling wholesale cannabis prices and high taxes.
“I think that even the ones that were doing the research and getting it out, maybe it wasn’t that helpful for people,” Redmond said.
Cannabis ‘not ready for prime time’
But the industry has other issues in addition to overly optimistic forecasting from analysts and slow movement on federal cannabis reform, Matt Karnes, founder of New York-based cannabis financial consultancy Greenwave Advisors and a former sell-side and buy-side analyst, told MJBizDaily.
Plenty of cannabis companies are still finding their footing, he said, pivoting out of oversaturated legal markets and looking for promising paths to profitability.
Another sign of the industry’s immaturity?
A disproportionate number of cannabis companies have restated their financial results, he said, showing that the industry is still mastering the accounting intricacies of the sector.
“You make your investment based on what comes out on a quarterly report,” Karnes said.
“And then two quarters later – oops! How is that supposed to give any investor confidence?”
With fewer analysts covering cannabis, Karnes said, it could contribute on a small level to the enormous difficulties U.S. plant-touching companies are having attracting investment in the industry.
But, he noted, there are still analysts covering U.S. plant-touching operators, such as Matt Bottomley at Canaccord Genuity and Andrew Semple at Echelon Wealth Partners.
“It’s a slight incremental negative,” he said of the impact on raising capital.
“But I don’t think the industry was necessarily ready for prime time.”
Source: https://mjbizdaily.com/fewer-research-analysts-covering-cannabis-underscores-industry-woes/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
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.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
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.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
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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