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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:

• South Africa makes legalization official

• Cansortium and RIV Capital team up

• Vangst partners with Gusto for payroll

…and more. Let’s get to it.

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🚨 Roll Call

Policy

Legitimate legalization. President Cyril Ramaphosa signed into law the Cannabis for Private Purposes Act, which will make the cultivation, possession, and use of cannabis by adults in a private setting legal. The bill was adopted by the National Assembly back in November after being under consideration since 2018.

The new law does not permit the sale or purchase of cannabis, meaning residents will be required to grow their own plants. Children are prohibited from possessing, dealing, and smoking or consuming cannabis.

The bill also provides expungement of criminal records for those convicted of possession, use, or dealing of cannabis.

Business

Major merger. Two prominent vertically integrated cannabis companies are joining forces. Cansortium, operating under the FLUENT brand, and RIV Capital, operating the Etain chain of dispensaries, announced the intended business combination yesterday.

The new corporation will operate under the Cansortium name and will be headquartered in Tampa, Florida, the current location of Cansortium's corporate offices. Current Cansortium Chief Executive Officer Robert Beasley will act as CEO of the combined company.

In total, the joint enterprise will be comprised of 8 cultivation and processing facilities and 42 retail locations across four of the largest U.S. states by population — Florida, New York, Texas, and Pennsylvania.

Tech

Payroll partners. Cannabis hiring marketplace Vangst has partnered with Gusto to bring the payroll and benefits platform to the cannabis industry. Through the partnership, Vangst maintains it will help thousands of cannabis companies in making the switch to Gusto.

The announcement is especially noteworthy as it signifies a level of acceptance by traditional software companies to work with cannabis industry. Gusto currently serves 300,000 businesses nationwide.

🇺🇸 State of the Industry

California: A bill that would allow Amsterdam-style cannabis cafes passed the state Assembly and is now headed to the Senate; Governor Gavin Newsom vetoed a prior version last year.

Louisiana: The two public universities — LSU and Southern University — that have held exclusive rights over medical cannabis farming could soon lose their duopoly after the Legislature approved a bill to privatize cultivation; it awaits Governor Jeff Landry’s signature.

New York: The state’s top cannabis regulator, Office of Cannabis Management Executive Director Chris Alexander, resigned last week amid turmoil and following criticism from Governor Kathy Hochul.

💻 Tech

Agrify announces $13.8 million debt-to-equity conversion

The cannabis cultivation and extraction solutions provider made the move in an effort to regain Nasdaq compliance.

🌏 Around the World

Australia: Victoria is set to launch the world’s first medical cannabis driving trial on a closed-circuit track that mimics real-world driving conditions; it will assess performance including steering, braking, speed control, and ability to manage distractions.

United Kingdom: A study published this month found that nearly a third (28.5%) of UK police officers did not know that medical cannabis is legal on prescription or were unsure; more than 88% believed they would benefit from more training on the matter.

💨 Quick Hitters

• Three people were arrested in Brooklyn after the NYPD found one of the city’s largest illegal cannabis distribution operations to date.

• The owner of seven unlicensed cannabis dispensaries in upstate New York was fined over $15 million.

• Nicki Minaj’s concert in Manchester was postponed after she was detained in the Netherlands over cannabis police discovered in her bags.

• The family of reggae legend Bob Marley is collaborating with Jeeter on a one-of-a-kind cannabis line.

• Country singer Jelly Roll says cannabis has kept him from using codeine, Xanax, and cocaine.

• AYR Wellness and iconic Boston-based Kowloon Restaurant partnered on a limited edition Mai Tai cannabis-infused seltzer.

• A New York beer distributor is planning to open a cannabis dispensary next door.

📚 What We’re Reading

• I got high in an SF weed lounge and these should be everywhere mannnnn (SFGATE)

• Meet The Kings Of The Pre-Roll Joint (Forbes)

• Amendment killing nationally legal cannabis makes it into House farm bill (The Hill)

• Delta-8 should be regulated and taxed, not banned (Chicago Sun-Times)

• Where Canada’s Weed Legalization Went Wrong (Foreign Policy)

• South African grain sector sees bud of potential in cannabis oil (Daily Maverick)

• California comedown: how illicit cannabis farms have left a wilderness where ‘you’re lucky to see a lizard’ (The Guardian)

🎙️ Potcasts

• How Florida Will Change the National Cannabis Landscape Through Amendment 3 (Cannabis Law Now)

📼 Video of the Week

🗓 Upcoming Events

September 7 & 8: The Miracle of Mundelein music festival — featuring Wiz Khalifa, Slightly Stoopid, and Rebelution, among others — will take place across from RISE Dispensary in Mundelein, IL.

🔎 Job Board

• Strategic Finance Associate

  • Nabis

  • $105,000—$120,000

• TikTok Shop Growth Strategist

  • BRĒZ

  • $85,000—$135,000

• Marketing Project Manager

  • Mfused

  • $60,000—$80,000

📨 Puff, Puff, Pass Reeferal Program

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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