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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:

• Cannabis to be rescheduled

• MedMen files for bankruptcy

• Treez launches eComm product

…and more. Let’s get to it.

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🚨 Roll Call

Policy

Rescheduling for real. In a historic development, the Biden administration is officially poised to reschedule cannabis under federal law. Cannabis will go from Schedule I to Schedule III. This represents the most significant policy shift in the more than half-century since the Controlled Substances Act came into effect. It will not, however, make cannabis federally legal.

Per the Drug Enforcement Administration (DEA) website, the difference is as follows:

Schedule I: Schedule I drugs, substances, or chemicals are defined as drugs with no currently accepted medical use and a high potential for abuse. Some examples of Schedule I drugs are: heroin, LSD, marijuana (cannabis), and ecstasy.

Schedule III: Schedule III drugs, substances, or chemicals are defined as drugs with a moderate to low potential for physical and psychological dependence. Schedule III drugs abuse potential is less than Schedule I and Schedule II drugs but more than Schedule IV. Some examples of Schedule III drugs are: products containing less than 90 milligrams of codeine per dosage unit (Tylenol with codeine), ketamine, anabolic steroids, and testosterone.

The move will have some major ramifications for the cannabis industry at large, particularly:

• It will eliminate restrictive tax burdens presented by IRS Code Section 280E, which prohibits legal cannabis companies from deducting ordinary business expenses

• It will remove barriers for conducting research, making it easier to study cannabis and its impact

For the most part, cannabis companies applauded the news.

Business

MedMen no more. MedMen — the infamous cannabis retailer once deemed the “Apple Store of Weed” — has filed for bankruptcy. The report comes merely six years after the company commanded a massive $3 billion valuation amidst its IPO.

Despite the enormous fall, MedMen’s struggles were well documented. The once thriving multi-state operator exited the Arizona and Nevada markets at the end of last year. At the beginning of this year, its stock hit nearly zero. And recently, it closed all but two of its stores in California in what might have been the final nail in the coffin.

Tech

Grow on Treez. Cannabis POS veteran Treez, founded in 2016, is finally getting into the eCommerce game. With its new Treez Ecommerce offering, the company now offers a full suite of technology solutions for dispensaries — including point of sale, retail analytics, and cashless payments.

Treez Ecommerce is exclusively for Treez POS customers. It is currently available in California and is expected to be in all Treez POS markets by the end of Q2.

🇺🇸 State of the Industry

Massachusetts: Gross sales for adult-use cannabis have surpassed $6 billion since the industry kicked off; the total jumps to about $7 billion when combined with medical cannabis.

🤝 Deals

Cookies set to secure Cookies-related assets in Florida

The global cannabis company announced its intention to acquire all operational cannabis assets related to the production and sale of Cookies-branded cannabis products in the Sunshine State from TRP Co. and its affiliates.

💨 Quick Hitters

• A new poll shows a majority of Massachusetts residents believe hemp-derived THC products should only be sold at licensed dispensaries.

• Canadian cannabis retailer High Tide appointed a new CFO.

• Professional wrestling legend Ric Flair launches his cannabis brand in Michigan.

• KFC debuted its cannabis-free Saucy Nuggets pop-up dispensary on 420 weekend in Los Angeles.

📚 What We’re Reading

• Investing in Cannabis Stocks? Reclassifying Marijuana Isn't the Big High (The Wall Street Journal)

• New era for pot regulation leaves old problem: Many cannabis companies can't find a bank (ABC News)

• New York Vowed to Shut Down Illegal Weed Shops. It Just Licensed One. (The New York Times)

• North Side dispensary Sway is deeply rooted in LGBTQ+ history (Chicago Tribune)

• ‘Seize all cannabis’: Inside the surprising federal crackdown on New Mexico weed farmers (POLITICO)

• Japan’s cannabis market growing rapidly amid regulatory shift (The Japan Times)

🎙️ Potcasts

• The DEA Agrees With Schedule III (Higher Exchanges)

• What the federal government’s shift on marijuana means for Illinois (WBEZ’s Reset)

• Will ND voters legalize recreational marijuana? (Plain Talk)

📼 Video of the Week

🔎 Job Board

• Chief of Staff, Technology

  • Weedmaps

  • $140,000—$160,000

• Human Resources Manager

  • Puffco

  • $95,000—$120,000

• Central Operations Manager

  • Nabis

  • $70,000—$100,000

📨 Puff, Puff, Pass Reeferal Program

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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