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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:

• Maryland makes it official…recreational cannabis that is

• The Senate puts SAFE Banking in the spotlight

• Cannabis operators paid more in taxes than traditional businesses

…and more. Let’s get to it.

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🚨 Roll Call

Policy

Moore makes it official in Maryland. After lawmakers ironed out the final details for the recreational cannabis market last month, Governor Wes Moore officially signed the bill into law. Adult-use sales are expected to start July 1.

The momentous occasion comes two decades after Governor Robert L. Ehrlich signed a law recognizing medical cannabis in Maryland.

Policy

Senate puts SAFE Banking in the spotlight. The United States Senate Committee on Banking, Housing, and Urban Affairs held a hearing Thursday entitled “Examining Cannabis Banking Challenges of Small Businesses and Workers” to discuss the Secure and Fair Enforcement (SAFE) Banking Act. It was the committee’s first-ever meeting on the topic. The over two-hour-long session included opening statements from U.S. Sen. Sherrod Brown (D-OH), Chair of the Committee, and Ranking Member Tim Scott (R-S.C.).

Many industry experts and insiders weighed in as well.

Business

Taxation takes a hold. An impact analysis of federal taxes on the cannabis industry conducted by cannabis research firm Whitney Economics found cannabis operators paid more than $1.8 billion in excess taxes compared to traditional businesses in 2022.

Additionally, less than 25% of cannabis operators surveyed indicated they were profitable, in large part due to the heavy tax burdens the industry faces.

The additional taxes paid by cannabis businesses is forecasted to increase to $2.1 billion in 2023.

🇺🇸 State of the Industry

Illinois: Adult-use sales numbers were disclosed for April by the Illinois Department of Financial and Professional Regulation.

Missouri: Total sales topped $350 million in the first three months since the recreational market opened up, despite a slight drop in April.

New Hampshire: The Senate voted against a bill to legalize cannabis, ending any chance of getting it passed this year.

Ohio: A pro-cannabis group — The Coalition to Regulate Marijuana like Alcohol — has started collecting the necessary signatures to get recreational cannabis on the ballot in November.

Washington: A bill signed by Governor Jay Inslee to expand the state’s social equity program will allow up to 52 more dispensaries to be open by people who meet the social equity applicant criteria.

📊 Business

Aurora: The Canadian company serving both the medical and consumer cannabis markets worldwide expanded its portfolio in Germany with the launch of two new cannabis flower products for patients.

Curaleaf: The international provider of consumer cannabis products reported its financial results for Q4 and full-year 2022. Revenue for the fourth quarter increased to $352.5 million, up 14% YoY; revenue for the fiscal year increased to $1.34 billion, up 12% YoY.

Green Thumb Industries: The national cannabis consumer packaged goods company and retailer revealed its financial results for Q1 2023. Revenue increased to $249 million, up 2% YoY.

💻 Tech

Akerna: The technology company is finally selling off its cannabis software business, including MJ Platform and Leaf Data Systems, as it exits the industry to merge with crypto firm Gryphon Digital Mining. The sale is being made to MJ Freeway Acquisition Co, with participation in the financing of the acquisition from Alleaves, a provider of cannabis ERP solutions.

springbig: The cannabis loyalty and marketing software platform company announced its financial results for Q1 2023. Revenue increased to $7.2 million, up 16% YoY.

Weedmaps: The technology infrastructure company and online consumer cannabis marketplace released its financial results for Q1 2023. Revenue decreased to $48 million as compared to $57.5 million in Q1 2022.

🌏 Around the World

Czech Republic: The State Agricultural and Food Inspection Authority is preparing measures to prohibit the marketing of CBD and other cannabinoids.

💨 Quick Hitters

• UCLA received $9.5 million in grants from the California Department of Cannabis Control for research on a broad range of topics, from the potency and effects of cannabis products to the financial health of California’s cannabis market.

• Contrary to prior reports, NBA players will not be allowed to promote cannabis products under the new Collective Bargaining Agreement, but will be permitted to invest in cannabis companies.

• Hundreds of people gathered in NYC for 50th annual New York City Cannabis Parade & Rally.

• Vertically integrated, multi-state operator 4Front Ventures introduced Koko Gemz, a new cannabis-infused chocolate product with four flavors — Milk Chocolate, Dark Chocolate, Cookies & Cream and Peanut Butter Milk Chocolate.

• Multiple people showed up to a Boston woman’s home to pick up cannabis orders after the address was used in an apparent scam for a fake dispensary.

📚 What We’re Reading

• Does weed help with anxiety or cause it? Here’s what experts say. (The Washington Post)

• Legal pot is more potent than ever. And it's still largely unregulated, putting consumers at risk. (USA Today)

• How advertisers are building up their cannabis ad budgets as marijuana regulations loosen (Digiday)

• From Seed to Sale: Inside New York's Cannabis Industry (Spectrum News NY1)

📼 Video of the Week

🔎 Job Board

• Cannabis Tax Manager

  • Crowe LLP

  • $84,660—$166,060

• Sr. Product Manager, Digital Banking

  • LeafLink

  • $115,000—$185,000

• Software Engineering Manager, eCommerce

  • Green Thumb Industries (GTI)

• Manager, Customer Success, Media Solutions

  • Fyllo

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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