RYTHM surged 23% Tuesday after posting strong second-quarter results and amid a potential federal reprieve on the hemp-derived THC ban set for November. The company reported $1.2 million in net income on $23 million in revenue, up 73% from the prior quarter. Lawmakers added language to the Senate's upcoming continuing resolution that would delay enforcement of the ban by one month, buying time to negotiate comprehensive regulation. The ban, which takes effect November 12, threatens RYTHM's brand portfolio and the licensing structure underpinning the company, as it would trigger Green Thumb Industries' right to repurchase the brand IP.
RYTHM, Inc.Strong Q2 earnings with $1.2M net income on $23M revenue, up 73%.
Ban delay affects licensing structure and repurchase right, but impact unclear.
