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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:

• Meta modifies cannabis-related advertising policy

• New York continues crackdown on unlicensed cannabis shops

• Curaleaf releases new mobile app nationwide

…and more. Let’s get to it.

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🚨 Roll Call

Tech

Meta modifies cannabis-related ad policies. Meta, the parent company of Facebook, Instagram, WhatsApp, and fast-growing new social media platform Threads, updated its advertising policy for CBD and related products this week. The most notable change allows for the promotion of legally permissible, non-ingestible CBD in the U.S., but with some restrictions.

Under the new policy advertisers don’t need written permission to run ads that:

• Promote or offer the sale of hemp products that don’t contain CBD or >0.3% THC (e.g. hemp seed and hemp fiber) in Canada, Mexico and the United States, provided that they comply with all applicable local laws, required or established industry codes and guidelines

• Educate, advocate, or give public service announcements related to CBD and related products provided that such ads don’t offer any prohibited products for sale

Ads will still not be able promote or offer the sale of THC products or cannabis products containing related psychoactive components. Further, ads for CBD products must not target people under 18 years of age and are only allowed in the U.S.

Earlier this year, Twitter shared it was taking measures to relax its own policy around cannabis advertising.

Policy

Empire State of Fined. NYPD officers and agents from the Department of Taxation and Finance raided two Manhattan locations of New York City dispensary chain Empire Cannabis Club on Tuesday as efforts to crack down on unlicensed cannabis stores intensify. Co-founders Jonathan and Lenore Elfand were both briefly detained after confronting authorities for attempting to enter the premises without a warrant. Between $50,000 and $100,000 of cannabis products was reportedly confiscated in total.

Empire Cannabis Club has been operating since before the Office of Cannabis Management issued any licenses in the New York market.

Both shops reopened within 24 hours of the incident.

Business

Curaleaf creates new mobile app. Curaleaf, one of the largest cannabis operators in the United States, announced its first standalone mobile app. The Curaleaf App, which provides a convenient way for patients and customers to order their favorite cannabis products, receive exclusive updates on new products and discounts, and track and manage reward points via the Curaleaf Rewards Program, is now available in 19 states where the company operates.

The Curaleaf App can be downloaded via the Apple App Store here.

🇺🇸 State of the Industry

Alabama: The Alabama Medical Cannabis Commission plans to award an initial batch of licenses on August 10, replacing selections originally announced last month.

Arkansas: According to the Department of Finance and Administration, cannabis sales hit a record $141 million for the first six months of 2023.

Connecticut: The Department of Consumer Protection reported cannabis sales in June of $23.8 million, surpassing the May number of $22.7 million.

Maine: Data from the Maine Office of Cannabis Policy shows cannabis sales reached $18.4 million in June, topping the record of $17.2 million set in May.

Maryland: Nearly $21 million of cannabis was sold during the first week of legalization.

New Hampshire: Alternative Treatment Center dispensary locations are now able to sell medical cannabis to visitors from around the country and Canada that are certified under a similar program in their state or province.

New York: The first cannabis dispensaries opened this week in the Bronx and on Long Island.

North Carolina: Legislation to legalize medical cannabis is likely off the table this year as House Speaker Tim Moore cites a lack of support from Republicans.

Pennsylvania: A bill to allow doctors to prescribe medical cannabis regardless of a patient’s condition is advancing in the state Senate.

📊 Business

Acreage appoints new CFO

The vertically integrated, multi-state operator named Carl Nesbitt as the company’s new Chief Financial Officer.

Botanica raises $9 million Series B

The maker of Mr. Moxey’s and Journeyman cannabis-infused edibles raised the strategic investment to expand into new markets. Several institutional cannabis investors — including KEY Investment Partners, GreenAxs Capital, and Entourage Effect Capital — participated in the round.

Curaleaf rebrands Select

The international consumer cannabis products company unveiled the national rebrand of its Select cannabis lifestyle brand across 15 U.S. states.

Cronos explores a sale

The Canadian cannabis producer confirmed it is in talks with potential buyers to sell the company.

InterCure delists from TSX

The leading Israeli cannabis company revealed its board of directors approved a voluntary delisting from the Toronto Stock Exchange after concluding the listing did not offer substantial benefits to the company and its shareholders. It will continue to be listed on the NASDAQ and Tel Aviv Stock Exchange.

Safe Harbor Financial launches new account type

The cannabis banking, payments, and financial services leader launched interest-bearing commercial deposit accounts for cannabis businesses nationwide in response to an unmet need in the industry.

🤝 Deals

Gold Flora and The Parent Company complete merger

The two California cannabis companies finalized the transaction to establish a leading vertically-integrated operator with state-wide coverage and control of the entire supply chain including cultivation, distribution, retail, and delivery. The new entity will operate as Gold Flora Corporation.

💻 Tech

SpringBig shares Q2 results

The customer loyalty and marketing automation software provider disclosed its financial results for Q2 2022. Revenue for the second quarter increased to $7.2 million, up 12% YoY; revenue for the first half of the fiscal year increased to $14.4 million, up 14% YoY.

💨 Quick Hitters

• Data compiled by MJBizDaily suggests celebrity cannabis brands outperformed traditional brands.

• RISE Dispensaries, a cannabis retail chain owned by Green Thumb Industries, debuted the “Thanks, Dick” campaign to ironically “celebrate” Richard Nixon’s signing of the Controlled Substances Act in 1970.

• Cannabis-related ER visits among young Americans climbed during the COVID-19 pandemic, says the CDC.

• The U.S. Food and Drug Administration and the Federal Trade Commission warned six companies for illegally selling copycat food products containing Delta-8.

• A man in Belfast was charged after police seized £60k worth of cannabis.

📚 What We’re Reading

• Science Reveals How to Roll the Perfect Joint (Scientific American)

• New York’s weed pioneers detail their struggles (POLITICO)

• The Edible Revolution Is Fast Upon Us. Here's How to Make the Most of It. (Esquire)

• Aussie cannabis player Little Green Pharma pins growth hopes on Europe (The Australian Financial Review)

• Boston THC Party: Cannabis Execs Protest High Taxes on Weed Industry (Adweek)

• From weapons to weed: Marv Morales navigates roadblocks in New York’s legal cannabis industry (NY Cannabis Insider)

• Anti-cannabis sentiment grows in Thailand a year on from legalisation (The Telegraph)

📼 Video of the Week

🔎 Job Board

• Communications Manager

  • PAX Labs

  • $100,000—$130,000

• Vice President Operations

  • Lucid Green

• Account Executive

  • Happy Cabbage Analytics

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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