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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:

• Dutchie gets sued for unpaid bill

• Tilray bets big on beverages

• NY lawsuit blocks CAURD licensees

…and more. Let’s get to it.

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🚨 Roll Call

Tech

Dodge, duck, dip, dive, and Dutchie. A lawsuit filed against cannabis eCommerce giant Dutchie claims it dodged paying a nearly $25 million bill. The order in question included custom display monitors and other point-of-sale devices, making the order nonrefundable.

The company also found itself making legal headlines at the end of last year, when news broke that co-founders Ross and Zach Lipson were suing company leadership for invalid removal from their positions.

Dutchie raised a $350 million Series D at a $3.75 billion valuation in October 2021, brining its total funding to more than $600 million.

Business

Let me buy you a drank. Global cannabis company Tilray Brands is buying eight beverage brands from Anheuser-Busch for a reported $85 million in an all-cash transaction. The acquisitions will expand Tilray’s presence in the craft beer industry and further diversify its overall portfolio.

The brands included in the deal are: Blue Point Brewing Company, Breckenridge Brewery, HiBall Energy, Redhook Brewery, Shock Top, Square Mile Cider Company, Widmer Brothers Brewing, and 10 Barrel Brewing Company.

The move will make Tilray the fifth-largest craft brewer in the United States. It ranked ninth on the Brewers Association’s annual list of the top 50 producing craft brewing companies in the U.S. for 2022.

Policy

Play your CAURDs right. A New York Supreme Court judge issued a temporary restraining order this week, blocking the Office of Cannabis Management (OCM) from issuing and approving new retail licenses. The decision comes after a lawsuit was filed by a group of military veterans alleging the agency’s process for prioritizing applicants violates the state’s Marihuana Regulation and Taxation Act.

A hearing is scheduled to be held this morning on the matter. If a continued injunction is granted it could wreak havoc on the industry already facing hurdles in its rollout and cripple current Conditional Adult-Use Retail Dispensary (CAURD) operators with additional delays.

More updates to come as the story unfolds.

🇺🇸 State of the Industry

Alabama: Chairman of the Alabama Medical Cannabis Commission Dr. Steven Stokes officially resigned amidst a lawsuit challenging his appointment, despite previously saying he had no intention to do so.

Arkansas: Several companies are suing the state in response to a new law banning hemp products such as oft-debated Delta-8.

Illinois: Cannabis sales in July reached the highest monthly total so far this year, surpassing $140 million.

Ohio: The Coalition to Regulate Marijuana Like Alcohol has submitted the necessary signatures to put cannabis legalization on the ballot in November, pending approval from the Secretary of State.

Vermont: The Cannabis Retailers Association of Vermont is launching a fundraising effort — aptly named “Higher Calling” — in order to help the industry as it looks to rebound from last month’s historic flooding without federal support.

📊 Business

Juul Labs seeks $1 billion in funding

The e-cigarette maker, developed by and spun off from cannabis vaporizer company Pax Labs, is reportedly raising the money at a significantly lower valuation than before.

Trulieve targeted by Florida Attorney General

The multi-state cannabis operator is facing scrutiny from Florida Attorney General Ashley Moody surrounding a proposed constitutional amendment that would authorize recreational cannabis. Trulieve has contributed all but a fraction of the money raised in hopes of getting the initiative on the 2024 ballot, which Moody believes “misleads” voters.

🤝 Deals

Story Cannabis acquires Nature’s Medicines locations in Arizona

The privately-held Phoenix-based cannabis corporation acquired four vertically integrated dispensary locations, bringing its total to 11 retail locations and two cultivation facilities in the state. Story Cannabis also operates dispensaries in Maryland and Ohio.

🌏 Around the World

Israel: The Ministry of Health loosened restrictions on medical cannabis, expanding access and lowering costs.

💨 Quick Hitters

• Chicago cannabis dispensaries prepared for increased traffic from the annual Lollapalooza music festival with streamlined checkout, special promotions, and product pairings to match different music.

• The former mayor of Adelanto, California was sentenced to 14 months in federal prison for taking bribes from cannabis interests while in office.

• Award-winning brand Kanha ventured into artisan chocolates for the first time with its limited-edition cannabis-infused S’mores edibles.

📚 What We’re Reading

• Dr. Sanjay Gupta: Cannabis is having a senior moment (CNN)

• It’s hard to sympathize with the U.S. marijuana companies cast out by banks (The Globe and Mail)

• Super Puffed: California marijuana startup Flow Kana spent over $175 million trying to become the biggest name in legal cannabis. Instead, it left Mendocino growers holding the bag. (Alta Journal)

🔎 Job Board

• SVP, Deputy General Counsel

  • Curaleaf

  • $275,000—$375,000

• Product Manager, eCommerce

  • Green Thumb Industries (GTI)

• Technical Support Specialist (Thursday — Monday)

  • Jane Technologies

  • $31.25—$36.06 per hour

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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