🌿 Trump names new DEA Administrator, former Verano exec charged with insider trading, and Oprah recognizes two cannabis beverages

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:

• Trump names new DEA Administrator

• Former Verano exec charged with insider trading

• Oprah recognizes two cannabis beverages

…and more. Let’s get to it.

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🚨 ROLL CALL

Policy

A new day at the DEA. The Trump administration wasted no time replacing recently departed DEA Administrator Anne Milgram, announcing the appointment of Derek S. Maltz to the role just a day after the inauguration ceremony at the U.S. Capitol. Maltz, who most recently worked in the private sector, previously served 28 years as a special agent at the agency before retiring in 2014. Trump’s original pick withdrew from consideration in December.

The appointment could have major ramifications in the ongoing, but currently delayed, effort to reschedule cannabis under federal law. Pending Senate confirmation, which will still be required to make the position permanent, Maltz would be tasked with a lead part in overseeing it.

Last year, Maltz called into question the legitimacy of the rescheduling process saying: “It’s crystal clear to me that the Justice Department hijacked the rescheduling process, placing politics above public safety. If there’s scientific evidence to support this decision, then so be it. But you’ve got to let the scientists evaluate it.”

He has also called cannabis a “gateway drug” and suggested cannabis use is connected to school shootings in America.

The Deputy Director of NORML, a nonprofit public-interest advocacy and lobbying group for cannabis policy reform, spoke directly about his view of Trump’s appointee:

News

Inside information. Former Verano executive Anthony Marsico is being charged by federal prosecutors with insider trading. The indictment alleges he used information obtained from his employment at the multi-state operator to purchase shares of rival cannabis company Goodness Growth that was privately the target of an acquisition.

In total, Marsico bought more than 900,000 shares, resulting in illegal profits exceeding $600,000. He later sold all of the stock before it was revealed that the potential acquisition was canceled.

The deal between Chicago-based Verano and Minneapolis-based Goodness Growth, valued at nearly $413 million in all stock, was made public in February 2022. Verano declared its intentions to terminate the arranged agreement in October of the same year.

Goodness Growth filed an application last year seeking over $860 million in damages for what it said was a wrongful termination of the acquisition agreement; Verano responded by rejecting the damages claim and seeking a full trial to determine the outcome.

Business

You get an award. Two THC beverages were included in Oprah Daily’s first annual Self-Care O-wards. Both Cann Social Tonics and Wynk Seltzer were recognized by the publication founded by beloved television personality Oprah Winfrey. 

The 47 winners comprised “a collection of gear, gadgets, apps, and wellness luxuries.” The honorees were put on an initial list by a group of experts and then selected by seasoned editors after they tested the contending products.

🇺🇸 STATE OF THE INDUSTRY

Idaho: The House of Representatives passed a bill to create a $300 mandatory minimum fine for cannabis possession; it now heads to the Senate for deliberation.

Indiana: A group of Republican lawmakers introduced a bill to legalize recreational cannabis.

Kentucky: Democratic legislators filed a set of bills aimed at making it legal to grow and possess small quantities of cannabis for personal use.

Virginia: A Senate committee advanced a bill to establish a framework for adult-use cannabis sales, but Governor Glenn Youngkin remains against it.

💼 BUSINESS

MediPharm snags supply deal in Brazil

The Ontario-based leader in pharmaceutical-grade cannabis manufacturing entered into a commercial agreement with Laboratório Teuto, a 77-year old pharmaceutical giant that produces more than 500 pharmaceutical products annually.

💻 TECH

ILGM introduces bold new brand

The cannabis cultivation provider unveiled its updated branding and eCommerce platform designed to empower home growers with premium genetics, step-by-step educational resources, and innovative tools like the AI-powered grow assistant.

🏆 AWARDS & HONORS

Cannabis Practice Group of the Year: Global law firm Dentons was given the distinction by legal news and analysis site Law360.

💨 QUICK HITTERS

• Toronto will stop cracking down on illegal cannabis stores due to lack of money for enforcement.

• Worcester County led all Massachusetts counties in cannabis sales for 2024, raking in over $339 million.

• The Colorado Marijuana Enforcement Division (MED) no longer requires signatures on Metrc Transportation Manifests.

📚 WHAT WE’RE READING

• Champ Bailey Discusses How Cannabis Helped Him During His Hall of Fame NFL Career (GQ)

• This Former Tesla Engineer’s Plan for Navigating Evolving State Cannabis Laws Was Inspired. But Can He Ride Out Trump? (Inc.)

• 'I break the law to buy my child's life-saving cannabis drug' (BBC)

• He was sent to prison for cannabis. A decade later, he's getting his 'Redemption.' (Crain’s Detroit)

• Excise tax, store markups crushing cannabis industry, producer says (CBC)

• Many in Japan advocate for drug education to combat cannabis abuse (The Japan Times)

🎙️ POTCASTS

• How THC-infused beverage brand Cann is capitalizing on Dry January (Modern Retail)

• The COO’s Playbook: Balancing Automation, Quality, and Efficiency Across 14 States at Verano (The Dime)

• The Hemp Loophole And Murky Future Of Smoke Shops (The Block Club Chicago Podcast)

📽️ VIDEO OF THE WEEK

🔎 JOB BOARD

• Wholesale Customer Relationships Manager

  • Ascend Wellness Holdings

  • $75,000—$90,000

• Ecommerce Marketing Specialist

  • Trulieve

• Retail Purchasing Manager

  • TerrAscend

📨 PUFF, PUFF, PASS REEFERAL PROGRAM

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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