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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:

• Georgia will be the first state to allow cannabis in pharmacies

• Metrc pivots from governments to businesses

• Social equity falls flat in Arizona

…and more. Let’s get to it.

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🚨 Roll Call

Policy

Peach State pharmacies. Georgia is set to become the first state to allow independent pharmacies to sell medical cannabis products. Almost 120 pharmacies submitted applications to the Georgia Board of Pharmacy and will provide products from Botanical Sciences, one of the state’s two licensed production companies, according to The Atlanta Journal-Constitution.

Each pharmacy will be required to have an inspection done before the board grants approval for them to make the medical cannabis available.

Tech

Metrc making moves. Cannabis regulatory platform Metrc is pivoting its focus from state governments to licensed cannabis businesses as users have complained about slow service and outages. The company currently boasts contracts with 23 government entities, by far the most of any seed-to-sale tracking system.

In May, Metrc replaced incumbent BioTrack in Illinois. It renewed its track-and-trace contract with Ohio in June. The company has been given at least five other government contracts in just over the last year and a half as well — Maryland, Missouri, Alabama, Rhode Island, and Mississippi.

Metrc also recently launched Metrc Connect, an improved integration experience for third-party partners, offering enhanced API functionality and new features to create more robust and efficient interactions with the Metrc system.

Both of Metrc’s main competitors sold earlier this year. Forian said goodbye to the cannabis industry entirely when they sold BioTrack to cannabis ERP platform Alleaves. Akerna did the same in selling off its cannabis software business, including MJ Platform and Leaf Data Systems.

Business

Errors in equity. Most social equity licenses in Arizona are now owned by investors and major cannabis corporations, taking control from those the program was built to benefit. As defined by Proposition 207 from the Arizona Department of Health Services, the ballot initiative that legalized cannabis, the social equity campaign is intended to “promote the ownership and operation of marijuana establishments and marijuana testing facilities by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws."

Only four of the original 26 social equity lottery winners still have an equity stake in the lucrative licenses, according to reporting from the Arizona Center for Investigative Reporting. Furthermore, of the 13 dispensaries opened thus far using a social equity license, just one is owned by an original licensee without support from a corporate dispensary. The rest “operate under familiar names like Sol Flower, JARS Cannabis, Story Cannabis and Mint Cannabis.”

🇺🇸 State of the Industry

Alaska: Dispensaries can now give out free samples of their products after a new regulation signed by Lieutenant Governor Nancy Dahlstrom last month went into effect on October 8.

California: Governor Gavin Newsom vetoed a bill to allow cannabis cafes, noting concern it could undermine long-standing smoke-free workplace protections.

New Jersey: The New Jersey Economic Development Authority (NJEDA) awarded $12 million of grant funding to 48 cannabis businesses.

New Mexico: Despite total revenue for the industry growing, average monthly revenue per licensed retailer is decreasing due to overproduction of cannabis and of dispensaries, according to the executive director of the New Mexico Cannabis Chamber of Commerce.

Wyoming: Cannabis advocates are aiming to get two initiatives — one to decrease penalties for use and possession of cannabis, the other to legalize cannabis for medical purposes — on the 2024 ballot.

📊 Business

Curaleaf to list on TSX, files with OCM

The international cannabis company filed its application to list subordinate voting shares on the Toronto Stock Exchange (TSX) and began the application process for adult-use sales with the New York Office of Cannabis Management.

Verano to list on Cboe Canada

The U.S.-based multi-state operator has received conditional approval from Canada’s Neo Exchange Inc., operating as Cboe Canada, to list its Class A subordinate voting shares.

💻 Tech

POSaBIT provides PIN debit processing update

The cannabis point-of-sale and payments company is working with its customers to discuss alternatives, including the option to migrate to the other payment solutions, to minimize impacts to in-store payment processing amidst an industry-wide decrease in debit acceptance rates caused.

💨 Quick Hitters

• A New York judge issued two exemptions to an ongoing injunction, allowing a pair of cannabis retailers — ConBud in Manhattan and Kush Culture Industry in Queens – to open.

• Maryland cannabis-themed apparel company Crabcakes & Cannabis was issued a cease-and-desist letter to stop selling stickers that resembled Old Bay seasoning’s packaging.

• Demand for classes at Minnesota Cannabis College have grown since recreational legalization.

• Cresco Labs launched its Good News brand in Pennsylvania.

📚 What We’re Reading

• Cannabis firms are cut off from the US financial system, but relief is in sight (The Guardian)

• What Thailand’s new coalition government means for the cannabis market (CNBC)

• Is cannabis today really much more potent than 50 years ago? (New Scientist)

• Humboldt cannabis farmers sue to block 'Karen initiative' from ballot (SFGATE)

📼 Video of the Week

🔎 Job Board

• Senior Product Manager

  • Dutchie

  • $160,000

• Account Executive

  • Fernway

  • $115,000

• Director, Business Intelligence

  • Green Thumb Industries (GTI)

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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