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🌿 SAFE Banking getting another push, GOP Congressman wants to Stop Pot, and Spotify's first-ever cannabis ads

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: SAFE Banking getting another push, GOP Congressman wants to Stop Pot, Spotify's first-ever cannabis ads, and more. Let’s get to it.

Author

Alex Lipnik
September 08, 2023

together with

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:

  • Another push for SAFE Banking

  • GOP Congressman wants to Stop Pot

  • First-ever cannabis advertisements on Spotify

…and more. Let’s get to it.

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🚨 Roll Call

Policy

Source: The Business Journals

Take it to the bank. Senate Banking Committee Chair Sherrod Brown (D-OH) mentioned SAFE Banking this week when outlining what he hopes to get done in the coming weeks.

“We want to get RECOUP. We want to get SAFE Banking. We already have, in the NDAA, the FEND Off Fentanyl Act. All three of those are my priorities.”

U.S. Senator Sherrod Brown

Brown indicated he’s already spoken with Senate Majority Leader Chuck Schumer about cannabis banking reform. Schumer himself included cannabis banking as one of a number of ‘critical issues’ the Senate has ‘an opportunity to advance legislation on’ in a letter to colleagues this month.

It remains to be seen whether the oft-discussed bill will finally make progress after many previously failed attempts.

Policy

Congressman wants to Stop Pot. In an attempt to withhold certain federal funding from states and tribes that permit the use of recreational cannabis, U.S. Congressman Chuck Edwards (R-NC) introduced the Stop Pot Act.

The Stop Pot Act would withhold 10 percent of federal highway funds from governments that violate federal law under the Controlled Substances Act, which prohibits recreational cannabis and classifies it as a Schedule I drug. This legislation does not apply to jurisdictions that authorize medical use of cannabis when prescribed by a licensed medical professional.

“Federal law is clear - sales of marijuana and THC drugs are illegal. Congressman Edwards’ ‘Stop Pot Act’ holds states accountable for violating federal law and undermining the authority of the FDA and the DEA.”

Smart Approaches to Marijuana Action President and CEO Dr. Kevin Sabet

The Stop Pot Act has been endorsed by the Christian Action League and Smart Approaches to Marijuana Action

This news came only days after a much anticipated announcement from the U.S. Department of Health and Human Services (HHS) recommending for the Drug Enforcement Administration (DEA) to move cannabis from Schedule I to Schedule III under the Controlled Substances Act.

Business

Source: Tiffany Hagler-Geard / Bloomberg

X marks the Spotify. Multi-state operator and consumer packaged goods company Cresco Labs announced yesterday it’s the first cannabis company to launch advertisements on popular audio streaming service Spotify.

“Audio streaming services represent a major opportunity for brands to reach large audiences in a targeted manner, and we’re excited to collaborate with Spotify to launch the first-ever cannabis ads from our Sunnyside national retail brand. Our Sunnyside advertising strategy is built on a data ecosystem enabling best-in-class targeting and measurement. Spotify’s platform will enable our marketing team to target our ads compliantly and profitably to our core shoppers in Illinois where we have a leading share in retail. This important partnership is not only a step in normalizing cannabis, but it also showcases the sophistication and quality of marketing that we have unlocked.”

Cory Rothschild, National Retail President at Cresco Labs

The ad campaign, which aims to communicate the benefits of shopping at Sunnyside dispensary, includes 30 second audio and in-app digital banners that drive to the retailer’s proprietary e-commerce platform. Advertising is supported by a volume-driving paid media campaign that includes programmatic buying, native ads, connectedTV and more.

🇺🇸 State of the Industry

Maine: Cannabis sales reached an all-time high in August at more than $21 million.

Maryland: The state is launching a website that determines the eligibility of cannabis license applicants based on social equity.

Ohio: A recent poll found that 59% of registered voters would vote in favor of cannabis legalization in the state.

Oklahoma: The Bureau of Narcotics is shutting down illegal cannabis operations tied to international crime organizations.

South Dakota: Proposed rule changes for medical cannabis would allow for increased amounts in some forms, among other changes.

📊 Business

Dutchie claps back in dispute with distributor

The cannabis eCommerce giant is countersuing the company that claimed it dodged paying a nearly $25 million bill, saying they took too long to order and deliver the custom monitors and other point-of-sale devices in question.

Frontier Risk Group raises seed round

The cannabis commercial insurance startup, led by former Parallel CEO James Whitcomb, raked in $3.1 million in funding led by Casa Verde Capital.

Wherehouse Beverage Company reveals new executive hires

The makers of THC beverages WYNK and COUNTDOWN added Sol Clahane (Chief Commercial Officer) and Phil McFarland (General Manager) to its senior leadership team.

🤝 Deals

High Times selling intellectual property to Lucy Scientific

The iconic cannabis brand and publication is offloading its IP and existing licensing agreements — including domestic and international rights to the High Times, Cannabis Cup, and 420.com brands — in an all-stock transaction to the Canadian psychotropic company.

Silo Wellness intends to acquire NUGL

The leader in psilocybin wellness retreats confirmed its intention to purchase the Jamaican cannabis hospitality company — including three Kaya Herb House retail locations and Gap Café wellness center — in a transaction valued at over $43 million CAD.

💻 Tech

POSaBIT reports second quarter results

The cannabis fintech shared its financial results for Q2 2023. Revenue for the second quarter increased to $13.5 million, up 65% YoY; transactional sales for payment services totaled $162.6 million, up 26% YoY.

🏆 Awards & Honors

Top Fintech Winner (Green Market Report): Green Check Verified took home the honor at the 2023 Green Market Report Cannabis Finance Awards.

💨 Quick Hitters

📚 What We’re Reading

  • US regulators might change how they classify marijuana. Here’s what that would mean (The Associated Press)

  • As Amsterdam bows out, what will be the new capital of cannabis tourism? (National Geographic)

  • 'Cannabis burned during worship' by ancient Israelites (BBC)

  • A million years of marijuana: How cannabis became our favourite weed (New Scientist)

  • Slightly higher times: Biden administration moves to loosen weed restrictions (POLITICO)

🔎 Job Board

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Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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