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US cannabis companies tread cautiously into turbulent Canadian market

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A growing number of American companies are wading cautiously into Canada’s competitive cannabis industry in search of new revenue streams and, in some cases, relatively cheap assets. 

Executives at a variety of U.S. cannabis companies – from technology and events firms to beverage and edibles businesses – told MJBizDaily that they find Canada’s centrally regulated market appealing. 

And despite Canada’s overproduction of cannabis and falling prices, some U.S. executives see more opportunities north of the border versus core U.S. markets where sales are declining on a year-over-year basis.

That’s especially true in more mature state markets such as Colorado, Nevada and Oregon.

“The U.S. is a high-growth market in (the) aggregate. But if you look at it on a state level – excluding recently legalized states, plus California – market growth is beginning to flatline if not slow significantly,” said Mitchell Osak, president of Toronto-based Quanta Consulting.

“For growth-focused, publicly listed U.S. companies, at a 10,000-foot level, Canada could represent an appealing market based on market size and regulatory clarity.” 

According to New York-based Cantor Fitzgerald, Canada’s recreational cannabis market grew 21% in the second quarter on a year-over-year basis, while the financial services firm estimates U.S. growth will be just 1%.

New growth 

In addition to sales trends, Osak noted that Canadian assets are relatively cheap at the moment, and the lower Canadian dollar makes M&A in Canada more appealing in some cases.

“For U.S. bargain hunters with cash, you could pick up a lot of quality assets from hungry sellers on the cheap,” he said.

That was the route taken by California-based cannabis technology company Blaze Solutions.

In May, Blaze acquired Vancouver-based dispensary point-of-sale software company Greenline for an undisclosed sum.

Chris Violas, CEO of Blaze, said the company was looking for new growth outside of its core markets. 

“There’s growth in the U.S., no doubt, and we’re excited about that. But, at the end of the day, there is a limited (total addressable market). So we asked, ‘Where could we go and be smart and win some market share?’” he told MJBizDaily

“From our point of view, it’s strategically looking at getting more market share without cannibalizing our own technology – and finding a partner who can open up that new market.” 

In a news release announcing the acquisition, Violas said the purchase gives customers the “ability to expand their footprint into the U.S. or Canada using the same software provider.”

“This is essential for increasingly sophisticated cannabis retailers in states near the border,” he added, citing Michigan, New York and Washington state as examples.

Edibles companies eye Canada

So far, most U.S. cannabis businesses expanding into Canada have been ancillary companies that don’t touch the plant – as opposed to cultivators and retailers.

But some U.S. infused product manufacturers are heading north of the border to sign deals with Canadian companies, including licensed producers.

The licensing and partnership deals allow the Canadian companies to produce edibles and other infused products according to manufacturing specifications of the U.S.-based company. 

“Some of the U.S. companies that would want to enter Canada are edibles brands looking for new revenue opportunities and ways to extend their brands,” business advisor Osak said.  

“Edibles are growing a lot in the United States, albeit from a small base. U.S. edibles companies would look to license their formulations and brands to Canadian LPs,” he said, adding that some have already done this successfully. 

One U.S. edibles company eager to expand into Canada is California-based Kiva Confections, which announced a deal in May with Montreal-based license holder Greentone. 

The arrangement will allow Kiva to offer its edibles at retail outlets across Canada.

Ben Schultz, who heads up new market expansion for Kiva, said the company has traditionally expanded into new markets through licensing and partnership deals. 

Schultz said such arrangements are one way of mitigating risk: The company doesn’t have to to shell out big bucks to build its own manufacturing facilities. 

“That’s the expansion look for us. From a cash-flow standpoint, we haven’t had to spend $10 million to set up in Canada, which plenty of people have done, for better or for worse,” he said. 

“We found a great partner who has the facility, licenses and team in place to help us manage and navigate. I wasn’t an expert coming in on the Canadian rules and regulations, so we’ve had to rely heavily (on our Canadian partners) to help us navigate the various nuances of the Canadian market.” 

Kiva wasn’t dissuaded by Canada’s hyper-competitive edibles market or the country’s patchwork of provincial regulations. 

“We have a lot of experience in the U.S. rolling out our product to different states and territories that have totally different rules – way more different market-to-market than Canada,” Schultz said. 

“We’ve got a lot of experience adapting our brands and products to the regulations of each location.” 

Hall of Flowers goes north

Another U.S. company seeking to make inroads in Canada through a partnership is the business-to-business cannabis trade show operator Hall of Flowers. 

Hall of Flowers Canada – set to take place in Toronto in mid-September – offers a retail environment that helps brands and retail buyers do business.

According to a news release, Hall of Flowers Canada intends to bring together at least 200 brands and 1,000 retail leaders.

Dani Diamond, Hall of Flowers founder and CEO, called his company’s expansion into Canada a “calculated risk.”

But it’s not without risk. Lift & Co., the largest cannabis trade show in Canada, went bankrupt last year before some of its assets were scooped up by Virginia-based events company MCI USA

Diamond said the opportunity to bring the Hall of Flowers model to Canada presented itself when Krista Raymer, co-founder of the Vetrina Group, a retail cannabis consulting firm based in Toronto, reached out with the idea of bringing the event up north. 

“Working with us was a way that the Hall of Flowers team was able to mitigate risk with our knowledge and relationships within the Canadian market,” Raymer said. 

“We have the boots on the ground, which might otherwise constrain the Hall of Flowers team during the day-to-day operations. And we’re able to reflect the nuances that are vital to making the show a success up here.”

Minimizing risk via horizontal approach 

Other U.S. companies recognize opportunity in the Canadian market, but they also see it as a way to prove out new cannabis products in one of the few federally-regulated recreational markets in the world. 

“We built our plan to de-risk as much of the unknown as we could,” said Paul Weaver, head of cannabis at Boston Beer Co., a well-known U.S. craft brewer. 

Rather than making a big splash by buying a cannabis producer and bottling plant, Boston Beer signed on strategic partners in Canada to produce nonalcoholic THC-infused teas dubbed TeaPot. 

The company launched its product in Canada via a three-tier, multifaceted supply-chain partnership with Peak Processing Solutions in Windsor, Ontario, and Entourage Health Corp., an Ontario-based grower and distributor.

“This is the new state of the union for the industry – having partners, collaborating and spreading out your capital a little bit. The entire industry is embracing a more horizontal approach.”

Weaver said big risks typically involve significant capital allocation, over-investing in one idea and not having the flexibility to pivot. 

“We focus on what we can control. … That’s what’s going to allow us to act quickly when the dust starts settling in some of these markets,” Weaver said, referring to up-and-coming European markets. 

“Flexibility in Canada allows us to test, learn and build an amazing product around TeaPot.”

Source: https://mjbizdaily.com/us-cannabis-companies-tread-cautiously-into-turbulent-canadian-market/

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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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