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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:

• 🔥 Sizzling summer cannabis sales

• 🗽 NY market expanding

• ☕️ Cannabis cafes are coming

…and more. Let’s get to it.

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🚨 Roll Call

Business

Red Hot American Summer. The summer saw scorching state specific cannabis markets, with many setting records.

• Colorado — sales jumped to over $16 million in July after sliding each month from April to June.

• Connecticut — sales totaled nearly $25 million in August, another record and the seventh month in a row sales have risen.

• Maine — sales in August reached close to $22 million, breaking the previous record for the fourth month in a row.

• Maryland — sales for August topped $91 million, beating out July when adult-use became legal.

• Massachusetts — sales at adult-use retailers surpassed $5 billion lifetime on the heels of consecutive record-breaking months in June, July, and August.

• New Mexico — sales hit a new record with more than $48 million in cannabis products sold in August.

We’ll keep an eye out to see if these trends continue through the fall and into the holiday season.

Policy

Turn over a New (York) leaf. The Cannabis Control Board in New York finalized regulations to expand the state’s recreational rollout at long last. Regulators will begin accepting applications for cannabis licenses on October 4. The new rules outline eight types of businesses: plant nurseries, cultivators, processors, cooperatives, distributors, dispensaries, delivery services and microbusinesses.

The approved changes also mean existing medical dispensaries, including MSOs, will be eligible, despite previous pushback.

The fledgling New York cannabis industry has been at a complete standstill since the end of August when a judge ruled he will not exempt any Conditional Adult-Use Retail Dispensary licensees from an injunction put in place because the Office of Cannabis Management (OCM) failed to comply with a court order.

A New York Supreme Court judge initially issued a temporary restraining order at the beginning of August blocking the OCM from issuing and approving new retail licenses. The decision came after a lawsuit was filed by a group of military veterans alleging the agency’s process for prioritizing applicants violated the state’s Marihuana Regulation and Taxation Act.

An injunction blocking the Office of Cannabis Management (OCM) from issuing and approving new retail licenses was extended two more weeks in a later decision as the judge urged the sides to come to a settlement.

Business

Coast to coast cannabis cafes. Cannabis cafes are coming, and they are going to be bicoastal.

On the West Coast, California could soon see Amsterdam-style cannabis cafes. Legislation to allow dispensaries to convert to lounges that sell food and drink in addition to cannabis received overwhelming bipartisan support, and now awaits approval from Governor Gavin Newsom. This presents a potentially huge economic opportunity for the industry. The Netherlands currently has more than 700 such cafes, which generate an estimated $1 billion annually.

On the East Coast, regulators in Massachusetts are finalizing guidelines for the upcoming rollout of cannabis cafes. These establishments would permit on-site consumption, something advocates have been pushing for.

The possibility of cannabis cafes is under consideration in St. Louis, Missouri as well, which would cover the Midwest.

🇺🇸 State of the Industry

Florida: A survey administered by the University of South Florida and Florida Atlantic University found 60% of Floridians support legalizing recreational cannabis.

North Carolina: The Eastern Band of Cherokee Indians reservation voted to allow possession and use of cannabis, making it the first and only part of the state where cannabis is legal.

New Jersey: Regulators relaxed restrictions regarding edibles, finally allowing edibles that resemble food to be produced and sold.

📊 Business

The Bettering Co. raises $6.7 million

The Chicago-based real fruits edibles brand added the funding to its seed round in 2022, bringing its total funding to more than $11 million.

Curaleaf launches THC beverage enhancers

The multi-state operator and consumer cannabis company introduced Zero Proof, a new brand of cannabis-infused drinkables.

Old Pal expands into NY

The cannabis lifestyle brand officially entered the New York market, bringing its products to The Empire State.

Tyson 2.0 comes to Montana

The cannabis company founded by cultural icon and former professional boxer Mike Tyson is partnering with Yellowstoned Dispensaries to bring its brand to Montana.

💻 Tech

Happy Cabbage Analytics gets $2 million in funding

The cannabis retail optimization platform raised the round from Delta Emerald Ventures to expand revenue growth for cannabis businesses.

Leafly initiates 1-for-20 reverse stock split

The online cannabis marketplace had the split of its common stock go into effect this week after being approved by stockholders and the Board of Directors in July and August respectively.

POSaBIT unveils POS 2.0

The cannabis fintech is brining its updated point-of-sale to the masses following a successful beta phase, with new features including a simplified and more intuitive user interface, enhanced data analytics, and expanded integrations with popular e-commerce platforms.

🌏 Around the World

Thailand: New Prime Minister Srettha Thavisin stated he doesn’t agree with the recreational use of cannabis, but his administration will continue to support medical cannabis.

💨 Quick Hitters

• The Senate Banking, Housing, and Urban Affairs Committee is expected to hold a markup session for the SAFE Banking Act during the week of September 25.

• Axel Bernabe, Chief of Staff and senior policy director in the New York Office of Cannabis Management (OCM), is leaving the agency.

• A new City Council proposal in Chicago would put restrictions on the sale of Delta-8 and other hemp-derived products.

• Rapper and former Pimp My Ride host Xzibit is launching a weekly podcast about the world of cannabis called Lasagna Ganja.

📚 What We’re Reading

• After starting UCLA’s cannabis club, she unexpectedly became a weed whisperer for Gen Z (Los Angeles Times)

• Big Weed Is on the Brink of a Multi-Million Dollar Surge into New York’s Cannabis Market (THE CITY)

• Senators push to pass cannabis banking bill after marijuana rescheduling (The Hill)

• NY gave these weed entrepreneurs a leg up. Now, they could face financial ruin. (Gothamist)

• Border sales a boost for most marijuana retailers across US (MJBizDaily)

📼 Video of the Week

🔎 Job Board

• Business Development Representative, NYC

  • Dutchie

  • $87,000

• Account Executive

  • Distru

• Events Marketing Manager - Cannabis & Fintech

  • Benzinga

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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