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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 workers threaten strike

• Hard times for High Times

• Tilray takes a tumble

…and more. Let’s get to it.

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🚨 Roll Call

Business

Eaze up. Noted California cannabis delivery company Eaze could be short-staffed on 4/20, as close to 600 drivers threaten to strike in the lead-up to the annual cannabis holiday. The workers, represented by the United Food and Commercial Workers Union (UFCW), voted to authorize the potential strike after rejecting the company’s "last, best, and final" contract offer.

The employees key asks include raising the mileage reimbursement rate, increasing hourly wages, and ensuring a minimum number of hours. Despite the ongoing dispute, the company says it is preparing for any gaps in coverage by hiring “a large cohort of new drivers.”

A strike could have major ramifications for the company if it coincides with the 4/20 holiday, one of the busiest days of the year for the cannabis industry.

Business

Hard times. At least three of the branded dispensaries run by notorious cannabis magazine High Times in California have shuttered. The news of the Blythe, Coalinga, and San Bernardino closures comes on the heels of a fourth failed operation in Oakland in the latter half of last year.

According to employees, the unfortunate fate comes after months of the company failing to pay taxes, rent, and health insurance premiums. The workers, many owed back pay, resorted to taking cannabis products from the stores as compensation.

The company had high hopes getting into the dispensary game back in 2020, when they scored 13 licenses.

In the face of the struggles, however, High Times intends to open a location in Denver later this month.

Business

Tilray tumbles. Global cannabis CPG company Tilray Brands cut its projected earnings for the fiscal year as it reported a quarterly loss of $105 million USD.

The disclosed figure, which fell short of analyst estimates, triggered a sharp sell-off of the company’s shares. Over the last 12 months, the company’s stock has fallen 25% on the Nasdaq exchange.

Tilray has looked to enhance its business by buying beverage brands over the past year. Last August, it bought eight beverage brands from Anheuser-Busch for a reported $85 million in an all-cash transaction. In January, it completed its acquisition of cannabis beverage brand Truss Beverage Co. from multinational brewing giant Molson Coors.

🇺🇸 State of the Industry

Alabama: A recently filed bill would increase the number of medical cannabis production licenses available.

Minnesota: More than 60,000 records for misdemeanor cannabis offenses are set to be expunged as early as next month; felony cases will be reviewed soon as well.

Utah: An analysis by the Utah Department of Agriculture and Food revealed almost 60% of cannabis products were acquired from illicit sources rather than regulated dispensaries, among other findings.

📊 Business

Flyers Cocktail Co. set to scale after closing Series Seed

The THC-infused beverage company closed its Series Seed round, led by Delta Emerald Ventures, after posting 250% revenue growth over the last nine months.

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🤝 Deals

Smoakland snatches up cannabis manufacturer Sublime

The Bay Area-based cannabis delivery platform announced the acquisition of the award-winning manufacturer of cannabis-infused pre-rolls, vaporizers, extracts, and edibles, to expand its manufacturing and distribution capabilities.

Petalfast purchases Flow Distribution

The leading cannabis industry sales and distribution platform acquired the sales and distribution subsidiary of the premier cultivator, manufacturer and distributor of cannabis products in Arizona.

🌏 Around the World

Germany: Bavaria may make Munich a “cannabis-free” zone during Oktoberfest.

💨 Quick Hitters

• Products from Mike Tyson’s cannabis brand sold at 20 stores across California faced a mandatory recall due to the presence of mold.

• Cannabis investment fund Poseidon makes its first move into the New York market with backing of PCA (Platform Cannabis Advisors).

• Authorities busted an illegal operation in the East Bay with just over $10 million in cannabis plants.

• Cannabis companies Theraplant and Zen Leaf owe the state of Connecticut a combined $2 million.

• A pair of brothers opened the first Jamaican-owned dispensary in the Bronx.

📚 What We’re Reading

• Almost No One Is Happy With Legal Weed (The Atlantic)

• A thriving Black woman-owned cannabis business meets suburban resistance (The Washington Post)

• New Markets Poised to Lift U.S. Cannabis in 2025 (The Wall Street Journal)

• From NYC to Amsterdam, the Smell of Weed Has Critics Fired Up (Bloomberg)

• How this UK-based firm is growing a more sustainable cannabis (CNBC)

• Black market cannabis thrives in California despite legalization (NPR)

• Beverly Hills scammer pleads guilty to $18-million cannabis con (Los Angeles Times)

🎙️ Potcasts

• Green Growth: Unpacking the 2024 Cannabis Jobs Report with Industry Experts (Proud To Work In Cannabis)

🔎 Featured Jobs

• Compliance Specialist, CBD

  • Square

  • $69,300—$138,500 (depending on location)

• Account Executive

  • Meadow

• Business Advisory Solutions Manager (Cannabis)

  • Citrin Cooperman

📨 Puff, Puff, Pass Reeferal Program

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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