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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:

• Eaze faces foreclosure

• Hemp takes a hit

• Cannabis overtakes alcohol

…and more. Let’s get to it.

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🚨 Roll Call

Business

Un-Eaze-y. Just under three years after acquiring retailer Green Dragon to become the largest cannabis delivery service in America, Eaze faces foreclosure.

Eaze has 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 as 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.

Despite the troublesome current situation, Eaze CEO Cory Azzalino insists the company will maintain operations during the process.

Policy

Hemp takes a hit. A House committee approved an amendment to the Farm Bill that could deal a devastating blow to the hemp-derived products industry if passed. The amendment — introduced by U.S. Congresswoman Mary Miller (R-IL) — would “federally ban all ingestible hemp products with any level of THC,” warned the U.S. Hemp Roundtable ahead of yesterday’s hearing.

Following the outcome, many voiced frustration that U.S. Congressman and House Agriculture Committee Chairman Glenn “GT” Thompson (R-PA) did not conduct a roll call vote for each individual amendment up for discussion. Instead, he grouped them together “en bloc” and put them to a voice vote, which was ultimately successful.

News

Popularity contest. The number of Americans using cannabis daily or near daily has surpassed those consuming alcohol daily or near daily for the first time ever, according to a study. While drinking overall remains more common, the frequency has become less common compared to cannabis use.

The research was based on data from the National Survey on Drug Use and Health.

🇺🇸 State of the Industry

Minnesota: Military veterans will soon be considered social equity applicants after new changes to cannabis law.

Nebraska: Advocates for medical cannabis surpassed one of two key signature hurdles in an effort to get the issue on the ballot for the third straight election year.

New Jersey: A lawmaker wants to allow state officials to cap prices on medical cannabis as patients voice concerns over high prices.

Ohio: A total of 47 local governments have already banned recreational cannabis dispensaries, which is allowed by state law.

📊 Business

Airo partners with The Flowery in Florida

The U.S. multi-state cannabis CPG company has partnered with the Florida-based vertically integrated medical cannabis producer to bring its award-winning products to the Sunshine State.

Sunderstorm set to expand to Japan

The cannabis edibles manufacturer has secured strategic partnerships to launch its KANHA gummies brand in Japan, marking its second major Asian market in addition to Thailand.

TILT on the verge of going vertical in Pennsylvania

The holding company behind a portfolio of cannabis companies that deliver products and services to businesses operating in the cannabis industry found funding to open dispensaries in addition to its cultivation operation.

🤝 Deals

NewLake provides capital for cultivation facility

The real estate capital provider for state-licensed cannabis operators invested $16 million in a Connecticut cannabis cultivation facility operated by C3 Industries, a leading multi-state, vertically integrated cannabis company headquartered in Ann Arbor, Michigan.

💻 Tech

CanPay partners with CannaPlan

The ACH-powered payments provider revealed a partnership with the employee benefits platform to allow employers to provide funds to be used towards employees' cannabis purchases at dispensaries.

🌏 Around the World

Thailand: Most Thais support Prime Minister Srettha Thavisin’s plan to re-list cannabis as a narcotic.

💨 Quick Hitters

• A new Fox News poll found 69% of registered voters favor legalizing marijuana nationwide for recreational use.

• A Martha’s Vineyard dispensary is suing the state over transportation rules that prevent cannabis from being delivered from the mainland.

• Smart & Safe Florida announced a statewide ad blitz to air across broadcast, cable, streaming, radio and digital platforms.

• Breweries in Illinois are fighting for the right to continue making THC beverages.

📚 What We’re Reading

• Marijuana rescheduling moves businesses into ‘uncharted territory’ (The Hill)

• Legal Weed Is Coming. It’s Time to Come Up With Some Rules. (The New York Times)

• Card payments remain a ‘challenge’ for legal cannabis as major banks avoid the sector. Changing classification won’t help. (MarketWatch)

• Weed drinks set up turf war between alcohol and cannabis industries (Axios)

• Hemp and marijuana go to war (POLITICO)

• A New California Law Could Even the Cannabis Consumption Playing Field in Los Angeles (Eater)

🎙️ Potcasts

• Weed did it, Joe (Today, Explained)

• THC Infused Beverages: Cantrip's Journey Through the Hemp-Derived Looking Glass (Cannabis Law Now)

📼 Video of the Week

🔎 Job Board

• Content Marketing Manager

  • Flowhub

  • $90,000—$115,000

• Graphic Design Manager

  • Gold Flora

  • $80,000—$100,000

• Business Development Representative

  • Alpine IQ

📨 Puff, Puff, Pass Reeferal Program

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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