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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:

• Senators introduce legalization bill

• High Times selling assets

• Alpine IQ announces eComm

…and more. Let’s get to it.

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🚨 Roll Call

Policy

Pulling the plug on prohibition. On the heels of the report that the Biden administration is poised to reschedule cannabis, U.S. Senators Cory Booker (D-NJ), Majority Leader Chuck Schumer (D-NY), and Finance Committee Chairman Ron Wyden (D-OR) reintroduced the Cannabis Administration and Opportunity Act — legislation that would go a step further and end the federal prohibition of cannabis by removing cannabis from the list of federally controlled substances.

The bill focuses on benefits in the following key areas:

• public health

• public safety

• regulation and taxation

• research

• entrepreneurship and restorative justice

• workers’ rights

The text of the CAOA can be found here. A summary can be found here.

Business

Away with all the assets. Renowned cannabis brand and publication High Times is having its assets sold off by brokers as they sit in receivership. The receiver for High Times was appointed near the end of April.

Among the assets for sale:

• High Times Magazine and related intellectual property including Dope Magazine, Cannabis Cup events, and social media accounts

• A distribution, manufacturing, and delivery operation

• A 10,000-square-foot cultivation business

• 7 High Times branded dispensaries

• The domain for 420.com

Any assets with offers that have not been accepted by May 17 will go up for auction and sold to the highest bidder.

Tech

Eventually they enter into eComm. Marketing, analytics, and loyalty solutions provider Alpine IQ revealed its new eCommerce capabilities. This comes less than two months after its acquisition of Dispense. The news was corroborated by Dispense, indicating that Dispense would be disbanded and formally become AIQ Ecommerce. Alpine IQ VP of Product Chelsea Officer, an early Dispense employee, reminisced on the company’s founding as the shift became official.

Alpine IQ is the second cannatech company in the last month to get into the crowded cannabis eCommerce game. Cannabis POS veteran Treez, founded in 2016, did the same less than a week prior.

🇺🇸 State of the Industry

Florida: The GOP unanimously passed a resolution opposing the recreational cannabis legalization initiative.

Illinois: Governor JB Pritzker issued 35 additional licenses for social equity adult-use cannabis businesses.

Kansas: A new bipartisan coalition is dedicated to legalizing adult-use cannabis and expunging criminal records.

Missouri: A judge ruled that local governments can stack sales taxes on cannabis dispensaries.

New Jersey: Recreational sales totaled $201 million for the first quarter of 2024, but the market growth rate is slowing.

New York: NYC Mayor Eric Adams initiated an operation to shut down unlicensed cannabis shops across the five boroughs.

📊 Business

KPMG ceases working with cannabis companies

The Big Four accounting firm will no longer provide financial-statement audit services to cannabis businesses, citing “elevated risk” in the industry.

TOGETHER WITH DOPE

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Hemp-derived THC beverages are booming. The floodgates have been opened, and stores across 42 states are now selling THC beverages, with the category projected to hit $5 billion by 2028.

Positioned as the ‘cannabis’ Liquid Death with their tallboy cans and limestone-filtered spring water, DOPE is set to be a market leader in the space.

Incubated in South Africa, DOPE has proven traction with over 1 million cans sold to date ($4m adjusted revenue), a globally trademarked brand, and an accomplished team.

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🤝 Deals

Canopy exercises options to acquire Wana and Jetty

The Canadian cannabis and consumer packaged goods company confirmed its American holding company Canopy USA has exercised the options to acquire Wana Brands and Jetty Extracts.

🌏 Around the World

Thailand: Prime Minister Srettha Thavisin plans to re-list cannabis as a narcotic by the end of the year.

💨 Quick Hitters

• Cannabis vaporizer creators Advanced Vapor Devices officially rebranded to ACTIVE.

• Cannabis brand Hemper teamed up with lifestyle brand Fred Segal on an exclusive smoking accessory line.

• New polling data from the Independent Community Bankers of America suggests 64% of Americans agree that the SAFER Banking Act’s provisions allowing cannabis-related businesses to access the banking system would help improve public safety.

• Voters in Lubbock, Texas rejected a proposition that would have decriminalized possession of small amounts of cannabis.

• Vaping technology innovator Ispire inked a long-term agreement with Acreage Holdings.

📚 What We’re Reading

• I'm Proud of My Cannabis Business, but My Wife Isn't (Westword)

• Reclassifying Marijuana Could Unlock Billions in Tax Savings for Cannabis Companies (The Wall Street Journal)

• As the U.S. moves to reclassify marijuana as less dangerous, could more states legalize it? (PBS)

• Scientists welcome new rules on marijuana, but research will still face obstacles (NPR)

• The prospects and perils of reclassifying cannabis as a less dangerous controlled substance (The Hill)

• Cannabis rescheduling may boost market, but banking uncertainties loom (American Banker)

• Replacing a marijuana industry icon: Q&A with Wana Brands President Joe Hodas (MJBizDaily)

🎙️ Potcasts

• 4/30 is the new 4/20! What we know about Schedule 3 (High Rise)

• Cash Flow Is King With Verano’s George Archos (Higher Exchanges)

📼 Video of the Week

🔎 Job Board

• Brand Manager

  • Jetty Extracts

  • $85,000—$115,000

• Retail Operations Engineer

  • Lucid Green

  • $80,000

• Relationship Manager

  • Safe Harbor Financial

  • $57,000—$67,400

📨 Puff, Puff, Pass Reeferal Program

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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