Hey there!

Welcome to another edition of The Pre Roll! This week we cover struggles being faced by some of the industry’s most prominent companies, New York City cracking down on unlicensed cannabis stores, Yale University establishing a cannabis research center, and more. Let’s get to it.

Roll Call

Business

Falling on hard times. A number of prominent cannabis companies — including MedMen, Canopy Growth, and Ayr Wellness — have made headlines this week and not for ideal reasons. Reports indicate that cannabis retailer MedMen, often dubbed the ‘Apple Store of Weed’ among other names, is on the brink of financial collapse. Canadian cannabis producer Canopy Growth is set to lay off 800 workers in addition to closing its flagship cultivation facility and HQ in Smiths Falls, Ontario. And U.S. multi-state operator Ayr Wellness is eliminating 180 jobs across the country.

Legal

The concrete jungle of cannabis. New York City Mayor Eric Adams is putting a plan in place to crackdown on illegal cannabis stores with help from Manhattan District Attorney Alvin Bragg. The city noted at least 400 such shops that exist today have already received warning letters. They are also urging landlords to evict those selling cannabis products without a license. This comes as NYC looks to see success in its nascent legal cannabis market. Two dispensaries have already opened in Manhattan, with a third on its way. The first in the State of New York outside of NYC is set to open today in Binghamton.

Research

Cannabis research goes to an Ivy League school. The Yale School of Medicine — one of the country’s top medical schools for research — announced plans to open a research center to study the science of cannabis and cannabinoids. The aptly named Yale Center for the Science of Cannabis and Cannabinoids will be funded by the Department of Psychiatry. The news comes on the heels of the launch of recreational cannabis sales in Connecticut and New Haven in particular.

Quick Hitters

• A federal judge ruled that a law prohibiting cannabis users from owning firearms is unconstitutional.

• Australia’s Therapeutic Goods Administration legalized MDMA and psychedelic mushrooms for medical use.

• The legal cannabis industry in the U.S. is expected to create more than 100k jobs in 2023.

• A proposed bill in New York would require some insurance plans to cover medical cannabis.

• A subsidiary of Scotts Miracle-Gro has sued a cannabis investment firm, claiming violations of U.S. antitrust laws.

Tweet of the Week

Twitter owner and Tesla CEO Elon Musk stirred up quite the conversation with his vague 420 tweet. Was it a cannabis reference or a nod to his recently concluded trial surrounding securities fraud?

State of the Industry

Hawaii: A new report from the Hawai’i Cannabis Industry Association projects more than 3,000 jobs and $80 million in tax revenue if adult-use cannabis is legalized.

Missouri: Cannabis sales reached nearly $13 million in the first weekend after recreational use became legal.

Oklahoma: Voters will decide next month on legalizing cannabis for adult-use.

Washington: Lawmakers heard testimony to allow home grow, more than a decade after the state voted to legalize cannabis.

ICYMI

• Wholesale cannabis technology platform LeafLink raised $100 million in Series D funding.

• A House Republican reintroduced legislation to reschedule cannabis.

• Airbnb teamed up with Seth Rogen and his company Houseplant.

Stay tuned for more cannabis industry news next week! And Happy Valentine’s Day to all those celebrating. A recent survey found that 61% of American adults are going to incorporate cannabis into their holiday plans.

💚,

The Pre Roll Team

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