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Happy Friday (and almost 4/20) Pre Rollers! Welcome to a special 4/20 edition edition of The Pre Roll, the cannabis newsletter that keeps you up-to-date on the industry happenings you need to know.

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

• Today’s trends in American cannabis

• Wana’s trailblazing CEO steps down

• Cann collabs with Barstool Sports

…and more. But before we get to it, let’s start with a little 4/20 history.

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The Origins of 4️⃣2️⃣0️⃣

No matter how you roll it, the slang 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 named 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 inherited. 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 story do you believe?

🚨 Roll Call

Trends

Today’s trends. As legalization sweeps across the country, the cannabis industry in the United States is growing and evolving. So, too, are people’s perception of the plant. Some numbers to back it up:

• More than 440,000 full-time jobs are supported by America’s legal cannabis industry, an increase of almost 23,000 or 5.4% from 2023.

• About 90% of Americans say cannabis should be legal for medical or recreational use.

• Over half of the country now lives in a state where recreational use of cannabis is legal and that figure jumps to three quarters when you include medical use; the number of people living in a county with at least one cannabis dispensary is approaching 80%.

• Nine percent of U.S. adults report that they use cannabis regularly; the rates are higher among lower-income and less educated individuals.

• Daily cannabis users have nearly doubled since 2020, from 9% to 17%.

With more states putting cannabis legalization to a vote at the ballot box this November, states continuing to set record sales totals, and the cannabis market being projected to hit $58 billion in sales by 2028, it seems the industry has barely scratched the surface.

Business

Whiteman withdraws. Trailblazing Wana Brands CEO Nancy Whiteman is stepping down from her day-to-day role at the end of May to pursue philanthropic activities and other interests. Whiteman, who founded the edibles company in her kitchen and grew it to one of the largest and most recognizable brands in the industry, will be succeeded by current Chief Marketing Officer and cannabis veteran Joe Hodas.

In 2021, Canadian cannabis company Canopy Growth agreed to buy Wana Brands for close to $300 million dollars, a deal that could be accelerated after shareholders voted to create Canopy USA for entrance into the U.S. market.

Just last month, news broke that Wana is set to enter the European market through a partnership with Switzerland-based Alpen Group.

Business

Cann collab. Cann, the pioneering THC-infused social tonic, announced a first-of-its-kind media partnership with popular digital media company Barstool Sports aimed at engaging its audience in new ways and expanding its reach to new audiences. The collaboration will be integrated into podcasts, social media, and video content across several Barstool entities including Fore Play, the #1 golf podcast, Bussin' With The Boys, Chicks in the Office, and Spittin' Chiclets.

The cannabis beverage company creates all-natural, low-calorie, microdosed drinks that come in three award-winning flavors: Grapefruit Rosemary, Blood Orange Cardamom, and Lemon Lavender.

Cann counts actress Gwyneth Paltrow, former NBA star Baron Davis, and singer Tove Lo among its investors.

🇺🇸 State of the Industry

Florida: In a recent poll, only 49% of adults said they would vote in favor of the recreational cannabis amendment in the upcoming election; it needs at least 60% to pass.

Illinois: Lawmakers and lobbyists are calling for a ban on delta-8 THC and other hemp-derived products.

Massachusetts: Governor Maura Healey awarded 50 grants to cannabis social equity businesses in 28 communities, totaling $2.35 million.

North Dakota: A petition has been submitted to get a cannabis legalization measure on the November ballot.

Ohio: The first recreational cannabis dispensaries could be open by June, according to regulators.

📊 Business

Eaze steers clear of strike

The California cannabis delivery company reached a tentative agreement with drivers and depot staff after nine months of negotiations to avert a strike ahead of 4/20; close to 600 workers threatened to strike earlier this month.

🤝 Deals

Nature’s Miracle nabs Agrify

The vertical farming technology and infrastructure company has entered into a term sheet to acquire 100% of all the outstanding shares of the leading provider of innovative cultivation and extraction solutions for the cannabis industry.

Vangst collects CannabizTemp

The cannabis industry hiring platform has acquired the temporary staffing division of CannabizTeam in a 50% cash, 50% stock deal that it claims is the first acquisition in the cannabis HR space.

💻 Tech

CanPay eclipses $1 billion in total transactions

The cannabis payments network has facilitated more than $1 billion in retail purchases from more than 300,000 consumers nationwide at over 1,000 participating state legal dispensaries.

Flowhub launches advanced integration with BioTrack

The cannabis POS revealed a new integration with the official government traceability system for 11 legal cannabis markets in the United States, expanding its national footprint to 36 states.

Weedmaps faces Nasdaq compliance issue

The cannabis technology company received an expected delinquency notification letter from Nasdaq as a result of a failure to file its annual 10-K report on time, but reassures that it has no immediate effect on the listing of its securities on the stock exchange.

💨 Quick Hitters

• Wingstop brought back its 4/20-inspired Hot Box, a sauced-and-tossed chicken sandwich, 8-piece classic or boneless wings, or 3-piece tenders, this time with a T.H.C. (The Hot Chili) rub.

• Jimmy John’s introduces ‘Deliciously Dope Dime Bag’ ahead of 4/20.

• Rapper and former Pimp My Ride host Xzibit was awarded Bel Air’s first and only cannabis license.

• Multi-state operator MariMed established a marketing partnership with iconic Boston-based music venues MGM Music Hall Fenway and Citizens House of Blues Boston.

📚 What We’re Reading

• How Brands and Cannabis Companies Are Maximizing Their Joint Efforts for 420 Marketing (Adweek)

• Stoner movies to stream this 4/20: These films pass the 'high' bar (USA TODAY)

• Before 420 Fest, Afroman talks cannabis legalization and why Coloradans make him uncomfortable (The Denver Post)

• A review of cannabis legalization found it appears to be working, except for a worrying downside (Toronto Star)

• How Does Illinois Spend Millions In Cannabis Cash? (Illinois Policy Institute)

• Union drive at St. Louis cannabis company could have major impact on national labor law (Missouri Independent)

🎙️ Potcasts

• The future of food and cannabis (The Dining Table)

• Cannabis Banking from the Inside: An Interview with Salal Credit Union (Cannabis Law Now)

📼 Video of the Week

🔎 Job Board

• Director of Strategic Finance

  • LeafLink

  • $200,000—$245,000

• Senior Product Manager

  • Flowhub

  • $125,000—$170,000

• Digital Marketing Manager

  • Kiva Brands

  • $100,000—$125,000

📨 Puff, Puff, Pass Reeferal Program

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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