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- 🌿 Cannabis banking pioneer retires, Frontier Risk raises $3 million funding round, and ScottsMiracle-Gro spinning off cannabis subsidiary
🌿 Cannabis banking pioneer retires, Frontier Risk raises $3 million funding round, and ScottsMiracle-Gro spinning off cannabis subsidiary
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 banking pioneer retires, Frontier Risk raises $3 million funding round, ScottsMiracle-Gro spinning off cannabis subsidiary, and more. Let’s get to it.
Alex Lipnik
January 31, 2025
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:
Cannabis banking pioneer retires
Frontier Risk raises $3 million funding round
ScottsMiracle-Gro spinning off cannabis subsidiary
…and more. Let’s get to it.
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🚨 ROLL CALL
News
Source: Green Market Report
Take it to the bank. Sundie Seefried, a cannabis banking pioneer and the brainchild behind Safe Harbor Financial, is retiring from her post as CEO of the organization.
As the former CEO of Partner Colorado Credit Union (PCCU), she created Safe Harbor to solve for the unmet compliant banking and financial services needs of the rapidly growing U.S. cannabis industry. Under her management, Safe Harbor has helped process more than $25 billion in cannabis-related funds since its inception in 2015.
Seefried will act as co-CEO during the transition period and remain on the the company’s board of directors to which she was appointed last year.
Tech
Insurance policy. Tech-enabled cannabis insurance provider Frontier Risk announced the closing of a $3 million Seed+ round led by leading cannabis venture capital firm Case Verde. Food and beverage industry focused carrier Illinois Casualty Company joined as a strategic partner in anticipation of growth in the THC beverage space; Stonybrook Capital acted as financial advisor for the transaction.
"The first 18 months of Frontier Risk have proven the major need for specialty insurance solutions across cannabis and other regulated industries, and we're thrilled to announce today's funding with the continued support of existing investors…This capital will allow us to continue our robust brokerage growth and complete our transition to full-stack retailer and capacity provider, offering the entire cannabis supply chain a one-stop solution to a diverse array of insureds with underwriting specific to highly regulated industries."
The company has raised $6 million total to date.
Business
Source: Crawford Hoying
Weed out. Multinational lawn and garden products corporation ScottsMiracle-Gro intends to make its cannabis subsidiary Hawthorne Gardening Company a separate entity.
“We believe that moving Hawthorne out of Scotts Miracle-Gro is better for everyone. For our shareholders, this would eliminate the volatility of the cannabis sector and generate a significant uplift in gross margin.”
At the beginning of last year, Forbes outlined the company’s rocky road investing in the cannabis industry.
🇺🇸 STATE OF THE INDUSTRY
Florida: Smart and Safe Florida has filed paperwork to get recreational cannabis back on the ballot in 2026 with new language to address previous concerns.
Kentucky: Governor Andy Beshear urged lawmakers to protect the gun rights of medical cannabis users.
💼 BUSINESS
GTI challenges Circle K ruling
The mega-MSO filed an appeal against a decision by an administrative law judge to block its plan to open “RISE Express” branded dispensaries at convenience store locations in Florida.
Innovative Industrial Properties settles situation with PharmaCann
The cannabis REIT reached a resolution with the multi-state operator on reported lease defaults.
🤝 DEALS
Blüm finds funding for M&A
The California-based cannabis operator received $900,000 in financing to support acquisition-related activities.
💻 TECH
Metrc claims track-and-trace contract in U.S. Virgin Islands
The cannabis regulatory technology company signed a contract to support the regulation of the medical and adult-use cannabis markets in the territory of the United States.
💨 QUICK HITTERS
A judge ruled that Curaleaf, the largest cannabis company in the country, must pay Michigan cannabis grower Hello Farms $32 million for breaching a purchase agreement.
Mango Cannabis opened a new 9,000-square-foot dispensary in New Mexico, becoming the largest in the state.
Connecticut-based cannabis company Theraplant lost an insurance claim seeking $1.3 million for damages from a fire.
Popular U.S. cannabis brand STIIIZY is expanding into the New York market.
An explosion left two people injured at a PharmaCann facility in Maryland.
📚 WHAT WE’RE READING
Inside the $32 Billion Industry Transforming Marijuana (New York Times)
Inside Charlie Fox, New York’s Chicest Cannabis Dispensary (Galerie)
As Pennsylvania weighs marijuana legalization, competing interests shape how it could work (PhillyVoice)
California cannabis kingpin lists seaside mansion for $60 million (SFGATE)
Cannabis-infused spirits offer new alcohol alternative (NBC News)
Texas has twice as many cannabis dispensaries as California. They're largely unregulated. (NPR)
Potential for contaminated cannabis products in Colorado creates risk for buyers (Colorado Public Radio)
Have cannabis stores maxed out in Connecticut? Real estate is becoming an issue (CT Insider)
Opinion | State is committed to authorizing ‘cannabis cafes’ (CommonWealth Beacon)
📽️ VIDEO OF THE WEEK
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📨 PUFF, PUFF, PASS REEFERAL PROGRAM
Stay tuned for more cannabis industry news next week!
💚,
The Pre Roll Team
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