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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.

Fans of the show Weeds rejoice: a reboot of the hit TV series — featuring Mary Louise Parker as pot-dealing mom Nancy Botwin — is in the works at Showtime.

Now to the news.

Here’s what we’re rolling up this week:

• The U.S. Securities and Exchange Commission shuts down a Ponzi-like cannabis scheme

• Ron DeSantis officially launches his 2024 presidential campaign (and where he stands on cannabis)

• Minnesota is on the cusp of cannabis legalization

…and more. Let’s get to it.

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🚨 Roll Call

Business

The SEC won’t let me be. The U.S. Securities and Exchange Commission obtained an emergency order to stop an ongoing Ponzi-like scheme run by scam cannabis company Integrated National Resources Inc. (dba WeedGenics) and its owners Rolf Max Hirschmann and Patrick Earl Williams, a rapper that goes by the stage name BigRigBaby. The two raised more than $60 million from investors under the pretense of expanding their operations and with promises of 36 percent returns, while having no real business to show for it.

They are alleged to have spent the majority of funds to make payments to other investors and pocket money themselves.

Policy

DeSantis finally announces. Despite some technical difficulties, Florida Governor Ron DeSantis officially launched his 2024 presidential campaign Wednesday. The Republican candidate has a varied history when it comes to cannabis. Marijuana Moment, a policy-focused cannabis news website edited by legalization movement veteran Tom Angell, provided a thorough breakdown of DeSantis’ record on cannabis starting from his time as a member of the U.S. House of Representatives.

We will be keeping tabs on the topic of cannabis, one that is popular with GOP voters, as the Republican primary heats up.

Policy

Minnesota on the cusp of cannabis. After making it through both the House and Senate, the recreational cannabis bill is heading to the desk of Governor Tim Walz. He has indicated repeatedly that he intends to sign it, making it all but a formality at this point.

The state has even set up an Office of Cannabis Management website already. Once signed, Minnesota would become the 23rd state to legalize adult-use cannabis.

🇺🇸 State of the Industry

California: The Department of Tax and Fee Administration collected over $200 million of cannabis tax revenue in Q1. The Unified Cannabis Enforcement Taskforce seized over $52 million worth of unlicensed cannabis products over the same period.

Maine: A new report from the Office of Cannabis Policy shows recreational sales nearly doubled from over $81 million in 2021 to more than $158 million in 2022.

Massachusetts: State regulators voted to do away with a pilot program to test cannabis cafes in a dozen communities in favor of moving towards a formal regulatory and licensing structure that would see them roll out a bit quicker.

Nebraska: A group of advocates called Nebraskans for Medical Marijuana filed petition paperwork with the Secretary of State to place the issue of medical cannabis on the 2024 ballot.

📊 Business

Cannaponics: The Australian vertically integrated medicinal cannabis company raised a record-tying $5 million in an equity crowdfunding campaign.

💻 Tech

Genetica: The AI-powered cannabis retail platform announced the close of its $500,000 seed round to make cannabis shopping smarter. The company says it is set to launch its software into more than 350 locations in the United States and dozens of retail and pharmacy entities internationally over the next quarter.

🌏 Around the World

Canada: Retail cannabis sales increased in every province in March, totaling above $400 million CAD.

Costa Rica: The Minister of Agriculture and Livestock granted the country’s first medical cannabis license.

Ireland: A man was arrested at Dublin Port after the Garda Síochána (national police of Ireland) seized an estimated €2.84 million worth of cannabis.

💨 Quick Hitters

• Data and analytics firm New Frontier Data found that 43% of consumers use brick-and-mortar dispensaries as their primary source of cannabis — 52% in adult-use states, 37% in medical states, and 29% in states where cannabis isn’t legal yet.

📚 What We’re Reading

• Weed Wine Is an Underground Favorite. Can It Survive the Gummy Era? (The New York Times)

• Fresh out of prison, Beverly Hills con artist launches $9-million hemp scam, FBI says (Los Angeles Times)

• Baltimore City gets proactive on reparations process as recreational cannabis sales approach (WYPR)

• New York’s cannabis market has made more than $16.5M. But is it making good on its promise? (Bronx Times)

• Carnival Cruise Line Has a Cannabis Solution (You May Not Like It) (TheStreet)

📼 Video of the Week

🔎 Job Board

• Cannabis Gummy & Chocolate Maker

  • Global Organic Distro

  • Starting at $40,000

• Director, Product and Solution Marketing

  • LeafLink

  • $140,000—$215,000

• Salesforce System Administrator

  • Dutchie

  • $117,000—$157,000

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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