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🌿 Eaze goes up in smoke, Canopy completes Wana acquisition, and Green Check eclipses $1 billion

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: Eaze goes up in smoke, Canopy completes Wana acquisition, Green Check eclipses $1 billion, and more. Let’s get to it.

Author

Alex Lipnik
October 11, 2024

together with

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:

  • Eaze goes up in smoke

  • Canopy completes Wana acquisition

  • Green Check eclipses $1 billion

…and more. Let’s get to it.

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🚨 ROLL CALL
Business

Up in smoke. California cannabis delivery darling Eaze is shutting down and laying off close to 500 workers. A full closure is expected by the end of the year. The news comes just over three years after Eaze acquired retailer Green Dragon to become the largest cannabis delivery service in America. The company, often referred to as the “Uber for Weed,” had previously been valued at $700 million.

Signs first pointed to this possibility earlier this year when it was reported the company was facing foreclosure.

Eaze had also been in the spotlight for unfavorable reasons a number of times of late. Close to 600 drivers threatened to strike in the lead-up to the annual 4/20 cannabis holiday this year, a disaster that was ultimately averted when an agreement was reached after nine months of negotiations.

Last year, a lawsuit accused Eaze of running an illegal operation and defrauding investors. And back in 2021, former Eaze CEO James Patterson pled guilty to one count of bank fraud.

It seems the splashy rebrand from less than two months ago was all smoke and mirrors.

Business

Acquired taste. Canadian cannabis company Canopy Growth confirmed earlier this week that, through its U.S.-based holding company Canopy USA, it has completed its acquisition of leading edibles company Wana Brands. Canopy USA now owns 100% of the outstanding equity interests in Wana.

The deal was initially announced in 2021 for close to $300 million dollars and was accelerated after shareholders voted to create Canopy USA for entrance into the U.S. market.

Tech

Major milestones. Cannabis fintech Green Check revealed it surpassed $1 billion in monthly cannabis sales deposits for its network of more than 170 financial institutions amidst a report on a strong Q3 for the business.

"Our growth underscores the need for CRBs to be connected with the right financial and business service providers, while our expanding base of financial institutions demonstrates the demand for compliant banking solutions. Through every partnership and product update, we’re committed to equipping financial institutions and CRBs with the right tools, technology, and teams to find success in the industry and make a positive impact in their communities.” 

Kevin Hart, founder and CEO of Green Check

Green Check also disclosed it has exceeded 11,000 cannabis businesses on its platform, another major milestone. 

🇺🇸 STATE OF THE INDUSTRY

Delaware: More than 1,260 applications were submitted for recreational cannabis business licenses in the application window between mid-August and the end of September, including over 800 for retail.

Nebraska: Attorney General Mike Hilgers and Secretary of State Bob Evnen are questioning the validity of signatures for the state’s medical cannabis petitions, but sponsors of the measures are pushing back.

Pennsylvania: A new proposal would allow more medical professionals to approve patients for medical cannabis cards; currently only licensed medical doctors or doctors of osteopathic medicine are able to.

Rhode Island: Regulators are working to finalize rules regarding social equity applicants for retail licenses.

💻 TECH

BLAZE and FundCanna form partnership to fuel retail growth

The cannabis retail technology company and the cannabis funding firm joined forces to offer dispensaries access to flexible credit lines through their POS system to help with cash flow, ensure timely payments, and allow for the purchase of inventory in larger quantities.

💨 QUICK HITTERS

  • Former NBA player Matt Barnes admitted to smoking cannabis before his recent interview with Vice President Kamala Harris.

  • The Securities and Exchange Commission charged Paul Bilzerian, the father of internet personality Dan Bilzerian, and the cannabis company he oversaw for fraud.

  • Trade association and advocacy organization Marijuana Industry Group released a comprehensive Green Voter Guide to inform Colorado voters ahead of upcoming elections about candidates that support cannabis initiatives.

  • A California dispensary installed a 100-foot-wide mural along a freeway.

📚 WHAT WE’RE READING

  • Growing Cannabis and Opium Poppies May Be Key to U.S. Supply Chains (New York Times)

  • Basketball great Carmelo Anthony enters new arena with cannabis brand, mission (MJBizDaily)

  • Hemp legal fights heat up in California and beyond (Reuters)

🎙️ POTCASTS
📽️ VIDEO OF THE WEEK
🔎 JOB BOARD

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Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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