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🌿 Minnesota makes it official, Trulieve exits two major markets, and California makes progress on cannabis cafes

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: Minnesota officially becomes the 23rd state to legalize adult-use cannabis, Trulieve exits two major markets, California makes progress on cannabis cafes, and more. Let’s get to it.

Author

Alex Lipnik
June 02, 2023

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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:

  • Minnesota officially becomes the 23rd state to legalize adult-use cannabis

  • Trulieve exits California and Massachusetts

  • California makes progress on cannabis cafes

…and more. Let’s get to it.

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🚨 Roll Call

Policy

Source: Abbie Parr / AP Photo

Minnesota makes it official. On Tuesday, Minnesota officially became the 23rd state to legalize adult-use cannabis as Governor Tim Walz signed the measure into law.

This comes after the two chambers of the Minnesota Legislature reconciled the differences between their two versions of the bill. The Minnesota House passed its adult-use bill on April 25. The Minnesota Senate followed suit with a bill of its own on April 28.

The state has already set up an Office of Cannabis Management website.

Despite the passing of the law, the Bureau of Alcohol, Tobacco, Firearms and Explosives clarified that those who use cannabis cannot legally own guns.

“Until marijuana is legalized federally, firearms owners and possessors should be mindful that it remains federally illegal to mix marijuana with firearms and ammunition.”

Jeff Reed, ATF’s Acting Special Agent in Charge of the St. Paul Field Division
Business

Too Good to be Trulieve. Vertically integrated, multi-state operator Trulieve is ceasing operations in California and Massachusetts. The company says it is doing so to preserve cash and improve financial performance. This is part of on ongoing effort to reallocate resources towards markets Trulieve believes have long-term growth potential.

"These difficult but necessary measures are part of ongoing efforts to bolster business resilience and our commitment to cash preservation as we continue to focus on our business strategy of going deep in our core markets and jettisoning non-contributive assets. We remain fully confident in our strategic position and the long term prospects for the industry."

Kim Rivers, Trulieve Chief Executive Officer
Policy

Source: Michelle Groskopf / The New York Times

California cannabis cafes. A bill allowing cannabis cafes similar to those in Amsterdam easily passed in the California State Assembly on Wednesday. It presents a potentially huge economic opportunity for the industry. The Netherlands currently has more than 700 such cafes, which generate an estimated $1 billion annually.

The bill now heads to the State Senate for approval. The law would permit onsite consumption and the sale of non-cannabis products such as food and beverage.

"Lots of people want to enjoy legal cannabis in the company of others, and many people want to do that while sipping coffee, eating a scone, or listening to music."

Matt Haney (D-San Francisco), State Assemblymember and the bill's author

🇺🇸 State of the Industry

Michigan: A proposed new rule would allow the Cannabis Regulatory Agency to deny a license or license renewal to cannabis companies who don’t pay their vendors.

New York: Cannabis farmers markets are coming soon according to state representatives. Excess inventory has been an issue for cultivators with few places to sell their product.

Ohio: State Representatives Jamie Callender (R-Concord) and Casey Weinstein (D-Hudson) introduced a bipartisan bill — House Bill 168 or the Ohio Adult Use Act — that would legalize recreational cannabis.

📊 Business

Cronos: The cannabinoid company is winding down and exiting its existing U.S. hemp-derived CBD-focused operations by the end of Q2 2023.

Dablicator: The California-based cannabis hardware producer announced a partnership with TerrAscend as it surpasses $100 million in revenue.

🌏 Around the World

Canada: In a report to Health Canada, the Competition Bureau — an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses — recommended boosting THC limits for edibles and loosening cannabis packaging rules.

💨 Quick Hitters

📚 What We’re Reading

  • Meet The Former Insurance Executive Who Built A $350 Million Cannabis Edibles Empire (Forbes)

  • Is weed safe in pregnancy? Harsh state policies imply it’s not — but what do the studies say? (Vox)

  • More and More Teenagers Are Coming to School High, N.Y.C. Teachers Say (The New York Times)

📼 Video of the Week

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… and more to come.

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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