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Happy 4/20 Pre Rollers! Coming at you a day early this week with a special 4/20 edition of The Pre Roll. It is jam-packed with new and noteworthy industry information and tailor-made holiday content.

If you’re seeing this, you might be among the nearly 40% of U.S. cannabis consumers taking the day off work to observe the holiday. Or you’re just slacking off at your job (just kidding…maybe). We hope you’re enjoying your day however you’re choosing to celebrate. We recommend throwing on a cannabis cult classic this evening.

Here’s what we’re rolling up this week:

• Two major bills were introduced in Congress

• Non-cannabis companies are dipping their toes into the cannabis waters

• Businesses released annual reports looking at industry trends

…and more.

But before we get to it, some 4/20 history for you.

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The Origin of 4️⃣2️⃣0️⃣

No matter how you slice it, the phrase notoriously associated with cannabis culture seems to have stemmed from 1970s high school students in San Rafael, California.

The most popular account — even Wikipedia says so — attributes it to a group that goes by the name the Waldos. As the story is told, the classmates met after school every day for weeks at 4:20 p.m. to search for a supposed stash of abandoned cannabis crops using a map they had come in possession of. While they never found what they were looking for, 420 became an expression for them to discuss cannabis in secret. A link to the band the Grateful Dead ultimately helped bring it to the mainstream.

But despite the widespread recognition that narrative has received, it has been disputed by another group known as the Bebes that claim they came up with the term themselves.

It’s the Waldos vs. the Bebes, the cannabis version of the Montagues and Capulets or the Sharks and Jets. Which side are you on?

🚨 Roll Call

Policy

Big bills brought before Congress. A pair of significant pieces of legislation were introduced this week.

• Preparing Regulators Effectively for a Post-Prohibition Adult Use Regulated Environment (PREPARE) Act

  • The bipartisan bill was brought about by Congressmen Dave Joyce (OH-14), Hakeem Jeffries (NY-08), and Brian Mast (FL-18).

  • It aims to better prepare the federal government for the inevitable end to cannabis prohibition.

  • Full text can be found here.

• Small Business Tax Equity Act

  • The bill was put in place by Congressman Earl Blumenauer (OR-03), founder and co-chair of the Congressional Cannabis Caucus.

  • It creates an exception to Internal Revenue Code Section 280E to allow state-legal cannabis businesses operating in compliance with state law to take deductions associated with the sale of cannabis like any other legal business.

  • Full text can be found here.

Business

Non-cannabis entities enter the industry. A number of companies from traditional industries have made recent headlines for their intentions to get (more) involved in cannabis.

• Couche-Tard ⛽️

  • The Canadian multinational operator of convenience stores with more than 14,300 locations worldwide, signed a master licensing agreement with cannabis retailer Fire & Flower.

  • A strategic investment in Fire & Flower was originally made by Couche-Tard in 2019; it expanded its stake last year.

  • The two companies piloted opening two Fire & Flower locations adjacent to Circle K stores in 2020; they added six locations in 2022.

  • A previously disclosed deal with U.S. multi-state operator Green Thumb Industries (GTI) to co-locate 10 Rise Express cannabis dispensaries adjacent to Circle K stores in Florida is awaiting regulatory approval.

• Future 🎤

  • The 2x GRAMMY award-winning rapper unveiled a cannabis line called ‘Evol’ with global branding and licensing company Carma HoldCo.

• Jack in the Box 🍔

  • The fast-food chain is joining forces with cannabis technology giant Weedmaps for a 4/20 food truck collab featuring products from a line dubbed Pineapple Express.

• Uber 🚗

  • The ride-share and food delivery company has partnered with cannabis marketplace Leafly to bring cannabis delivery to British Columbia through the Uber Eats app.

  • A similar arrangement was announced for Toronto in October.

• Wingstop 🍗

  • The chicken wing chain developed a new menu item, the Wingstop Hot Box, just for 4/20 and released an accompanying satirical training video for employees ahead of the holiday.

Trends

Today’s trends in cannabis. A handful of annual reports were published by brands in financial services, technology, and recruiting.

• Ernst & Young

  • The professional services organization and Big Four accounting firm shared the results of its first-ever EY Global Cannabis CEO Survey.

  • Among other findings, the survey found that 58% of cannabis companies didn't meet board expectations in 2022.

• LeafLink

  • The wholesale cannabis platform released its 2023 Wholesale Cannabis Pricing Guide.

  • The guide indicates that the legal cannabis industry experienced price declines across a majority of states and categories due to national and local hurdles.

  • Pricing for flower decreased approximately 50%, pricing for concentrates declined almost 25%, and pricing for pre-rolls dropped nearly 12%.

• MJBiz

  • The B2B news publication delivered its yearly MJBiz Factbook.

  • It projects the cannabis industry will add $100 billion to the U.S. economy in 2023.

• Vangst

  • The hiring and staffing agency published its 2023 Jobs Report.

  • The report declares the legal cannabis industry had a drop in employment for the first time ever.

🇺🇸 State of the Industry

As cannabis legalization sweeps across the United States, it can be difficult to keep up. The status varies state-by-state. In honor of 4/20, here’s a glimpse of where it stands today.

Colorado: The Colorado House of Representatives approved a bill to allow online cannabis sales.

Illinois: Employees at three GTI-owned Rise Dispensary locations went on strike prior to 4/20, citing unfair labor practices as the reason. In unrelated but also notable news, lawmakers are considering a bill that would prevent police vehicle searches solely based on the smell of cannabis.

📊 Business

Canopy Growth: The North American cannabis and CPG company refinanced CAD $100 million of notes due 2023.

Curaleaf: The U.S. multi-state operator had a busy week in New Jersey: regulators initially denied a renewal of its adult-use licenses, the company and its Chairman Boris Jordan pushed back, and the ruling was eventually reversed following a vote by the Cannabis Regulatory Commission during an emergency meeting.

Schwazze: The vertically integrated cannabis company acquired the Standing Akimbo medical dispensary in Denver and plans to open another in Colorado Springs under the brand name as part of the deal.

TOGETHER WITH STASH

📈 Investing

The legal cannabis industry is growing. The global legal market is expected to expand at a compound annual growth rate (CAGR) of over 25% from 2023 to 2030.

Some more stats for you:

• Legal cannabis is now America’s 6th most valuable crop. (Forbes, 2022)

• The U.S. cannabis industry is expected to reach $72 billion in annual sales by 2030. (Forbes, 2022)

• The legal cannabis industry employs over 400K Americans. (NORML, 2022)

Want to start investing in cannabis or other industries? Stash is a personal finance app with thousands of ETFs and individual stocks to choose from.

Pre Rollers who sign up with the button below and add $5 or more to their personal portfolio will get a $25 bonus to buy a cannabis (or other) investment on Stash.*

💻 Tech

springbig: The loyalty and marketing platform company announced the launch of its Brands Marketplace, an AI-based solution that uses consumer data to help cannabis retailers make data-driven decisions about which brands and products to offer in their dispensary.

🏆 Awards & Honors

Cannabis 42.0 (Forbes): The business publication revealed its annual list acknowledging the top 42 entrepreneurs and leaders shaping the future of the cannabis industry.

Top 100 Beverage Trends (Trend Hunter): Cannabis beverage company Happi came in at #12 on the list for its aptly named and newly launched duo of cannabis-infused seltzers Happi Glow and Happi Nightcap, which provide functional benefits for day and night respectively.

🌏 Around the World

Finland: The majority of adult Finns — 53% to be exact — support cannabis decriminalization and don’t believe the use of cannabis should be a crime according to a survey conducted by the Institute for Health and Welfare (THL).

Canada: The Supreme Court of Canada upheld Quebec’s ban on homegrown cannabis plants and ruled it constitutional in a unanimous decision.

💨 Quick Hitters

• Rick Steves — yes, that Rick Steves — was re-elected as Board Chair of NORML.

• Fairwinds Cannabis is selling a limited-availability Sriracha tincture for 4/20.

📚 What We’re Reading

• The Cannabis Edible Goes Mainstream (The New Yorker)

• California's small cannabis growers face extinction as taxes, bills and snow pile up (NBC News)

• With pot rules under the microscope, some entrepreneurs say Ottawa is stunting the industry's growth (CBC)

• Marijuana’s First Analyst Talks About Prices, Financing and Black Markets (Bloomberg)

• Cannabis shop robberies spur push to end restrictions on window displays (The Globe and Mail)

• Oversupply has Pennsylvania marijuana store owners not feeling the buzz (Pittsburgh Post-Gazette)

🗓 Upcoming Events

April 22: The “National Cannabis Festival” is taking place at the RFK Festival Grounds in Washington DC.

April 26-28: Jage Media is hosting “MJ Unpacked” at the New York Hilton Midtown in NYC.

Referral Breakdown

5 referrals: 20% Off Happi Promo Code 

10 referrals: Free 2oz. Veil Bottle

… and more to come.

Stay tuned for more cannabis industry news next week! We’ll be back to our regularly scheduled Friday programming.

💚,

The Pre Roll Team

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Note from Stash

*Offer is subject to T&Cs. Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Investing involves risk and investments may lose value. Holdings and performance are hypothetical. Stash does not endorse the illegal use of narcotics.