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Happy Friday Pre Rollers! Welcome to another 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:

• Canopy Growth acquires Acreage

• GTI eyes merger with Boston Beer

• Public comments support rescheduling

…and more. Let’s get to it.

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🚨 Roll Call

Business

Canopy combination. Canadian cannabis company Canopy Growth exercised its option to acquire American cannabis operator Acreage Holdings. The agreement, initially reached in 2019, will go through Canopy’s U.S.-based holding company Canopy USA. The CEOs of both firms discussed the deal when it was first announced.

In May, Canopy confirmed it had exercised the options to acquire Wana Brands and Jetty Extracts.

Business

GTI on the prize. The internet was set ablaze this week when news broke that Green Thumb Industries CEO Ben Kovler sent a letter to Jim Koch, founder of Sam Adams maker Boston Beer Company, expressing interest in a potential merger. The move seemingly comes in response to reports that Boston Beer was in talks to sell to Jim Beam (a company Kovler’s great grandfather helped build) owner Suntory.

While GTI’s official statement shortly thereafter claimed company policy is not to comment on market rumors, Kovler himself verified the rumors by sharing the letter on social media.

Boston Beer has already dipped its toes into the cannabis market with its infused iced tea brand TeaPot, currently available only in Canada.

While the pitch may end up leading to little more than publicity, a cannabis business striking a deal with a noted alcohol corporation is hardly a new concept. In fact, last year global cannabis company Tilray Brands bought eight beverage brands from Anheuser-Busch for a reported $85 million.

Policy

Rescheduling reinforcement. Amidst the 60-day public comment period on the proposed rescheduling of cannabis from Schedule I to Schedule III under the Controlled Substances Act, cannabis data firm Headset provided an analysis of the comments through the first week and a half. The review found overwhelming support, with 97% positive comments in favor of the federal change.

Stay tuned for more updates as the public comment period continues.

🇺🇸 State of the Industry

Alabama: The medical cannabis market is months away from opening up as lawsuits continue almost a year after the first licenses were supposed to be issued.

California: Cannabis sales are trending downward in the first quarter of 2024.

Minnesota: Governor Tim Walz signed a cannabis bill allowing some commercial cultivators to start growing later this year; it also changes the cannabis business license process from a merit-based application system to a vetted lottery.

Missouri: Since recreational cannabis was legalized in 2022, it has generated more than $19 million to support veterans, expand substance use treatment programs, and adding to the budget for public defenders.

New Hampshire: The House rejected a version of the cannabis legalization bill amended by the Senate, putting its future in jeopardy.

South Dakota: Voters will get a third chance at approving recreational cannabis legalization in November, as the measure was officially validated by Secretary of State Monae L. Johnson.

💻 Tech

Alpine IQ establishes enhanced integration with Lightspeed

The marketing, analytics, and loyalty solutions provider revealed the integration with the leading POS platform to enable retailers to refine their data, create more in-depth customer profiles, and fine-tune their targeting to optimize marketing capabilities. 

Greenline launches BLAZEPAY

The BLAZE-owned Canadian point-of-sale debuted its new payment processing platform — a fully integrated, compliant, and secure payment solution allowing cannabis retailers to accept credit card and debit card payments both in-store and online.

🌏 Around the World

Canada: Only a fraction of the anticipated pardons for cannabis possession have been granted as part of an expedited program that kicked off in 2019.

Korea: The Ministry of Justice issued a statement warning residents that cannabis use while abroad could lead to criminal charges upon returning home.

💨 Quick Hitters

• MSO Trulieve is set to open its 200th dispensary, more than any other cannabis retailer.

• Cannabis ERP software and seed-to-sale platform Canix laid off 10 employees as part of a Reduction-In-Force.

• Former President Donald Trump pledged to commute the sentence of dark web drug marketplace founder Ross Ulbricht if elected in November.

• Two law enforcement groups — the Peace Officers Research Association of California (PORAC) and the Oregon Coalition of Police and Sheriffs (ORCOPs) — endorsed the STATES Act.

• New Jersey Governor Phil Murphy made a surprise visit to a Black-owned cultivator, which named a strain “Murphy’s Sourz” after him, amid a push for more diversity in the state’s cannabis industry.

📚 What We’re Reading

• Wana’s Nancy Whiteman shares 14 years of cannabis business lessons (MJBizDaily)

• Beer Sellers Use a Loophole to Break Into Weed Drinks Market (Bloomberg)

• Pot payments players crave federal reforms (Payments Dive)

• California dethroned as this state now sells more legal weed (SFGATE)

• Strict rules over delta-8 and delta-9 likely for Texas’ booming hemp industry (Texas Tribune)

• The Reefer Madness Musical Returns—With Ads a High Priority (Muse By Clios)

🎙️ Potcasts

• Cannabis vs. craft brewing in Springfield (Crain's Daily Gist)

• Predictions: Cannabis Rescheduling, Florida, & Elections (Cannabis Investing Network)

🔎 Job Board

• Content Marketing Manager

  • Flowhub

  • $80,000—$115,000

• National Account Executive

  • SLANG Worldwide

  • $55,000—$70,000

• Director of SEO

  • Cannabis Creative Group

📨 Puff, Puff, Pass Reeferal Program

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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