🌿 Connecticut, CannaTech, and Crime

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Welcome to the first ever edition of The Pre Roll. If you're reading this, you're one of our earliest subscribers and we're grateful to have you with us. Make sure to save this email as we'll be running a contest later in the year for those who received it. Now to the news.

Roll Call

Connecticut goes recreational. On Tuesday, January 10, the State of Connecticut officially launched adult-use cannabis sales. The first day saw sales top $250,000. In anticipation of the roll out, Governor Ned Lamont cleared the cannabis convictions of close to 43,000 citizens.

Blaze acquires Tymber. POS company Blaze announced its plan to acquire eComm provider Tymber. It is the latest in a series of CannaTech acquisitions as the industry continues to consolidate. In 2021, Dutchie acquired both Greenbits and LeafLogix. Last year, Weedmaps purchased digital menu company Enlighten, Safe Harbor swallowed up financial technology firm Abaca, and Treez agreed to buy payments platform Swifter.

Cannabis and crime. There were multiple news stories this week relating to crime and the cannabis industry. While the amount of cannabis seized by U.S. Customs and Border Protection has plummeted as legalization spreads to more states, authorities worry the U.S. cannabis industry may be linked to international organized crime.

Quick Hitters

• Akerna sells 365 Cannabis.

• Bella Thorne shows off cannabis bar in her LA home.

• Jay-Z and The Parent Company restructure their agreement.

• Jones Soda expands THC-infused beverages.

State of the Industry

Illinois: According to Governor JB Pritzker, recreational cannabis sales jumped 50% to $1.5 billion in 2022, leading to almost $450 million in tax revenue collected.

Iowa: A report from the Cannabidiol Board revealed the state's medical program surpassed $10 million in 2022.

Kentucky: Governor Andy Beshear is calling for the legalization of medical cannabis; his executive order allowing the possession of medical cannabis went into effect on January 1.

Maine: Recreational sales nearly doubled to $159 million in 2022 per the Office of Cannabis Policy, up from $82 million the previous year.

Michigan: A series of Republican-sponsored cannabis bills were vetoed by Governor Gretchen Whitmer, which she says "were rushed through a lame duck session and need closer examination."

Minnesota: A push to legalize cannabis is under way in the state legislature, with Governor Tim Walz voicing his support.

Montana: Total cannabis sales — including medical and recreational — are expected to exceed $300 million in the first year.

New Mexico: Sales for recreational cannabis surpassed $28 million in December, a new record for the state.

New York: On the heels of the long-awaited first recreational sale just before the new year, a second recreational dispensary is slated to open as soon as next week in NYC.

South Carolina: Two bills to legalize cannabis for medical use have been pre-filed ahead of the 2023 legislative session.

Tennessee: Democrats in the state have introduced a bill to legalize cannabis despite opposition from their Republican colleagues.

Vermont: The number of dispensaries selling cannabis for recreational use has reached 25 in only three months, with more likely on the way.

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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