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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:

• Verano claps back at Goodness Growth

• American Medical Association endorses drug decriminalization

• Happi partners with Wana on hemp-derived edibles

…and more. Let’s get to it.

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🚨 Roll Call

Business

MSOs trade blows. After Minneapolis-based Goodness Growth filed an application last month seeking over $860 million in damages for an alleged wrongful termination of an acquisition agreement, Chicago-based Verano responded by rejecting the damages claim and seeking a full trial to determine the outcome.

The original deal, valued at nearly $413 million in all stock, was made public in February 2022. Verano revealed its intentions to terminate the arranged agreement to acquire Goodness Growth in October of the same year.

It remains to be seen how this will play out, but the process could be long and extend well into 2026.

Policy

AMA about decriminalization. The American Medical Association (AMA) voted overwhelmingly in favor of supporting drug decriminalization earlier this month at its annual House of Delegates meeting in Chicago.

The new policy comes with revised language in stark contrast to an earlier version:

• The old language stated the AMA should “"continue to monitor the legal and public health effects of state and federal policies to reclassify criminal offenses for drug possession for personal use."

• The new language has the AMA calling for "elimination of criminal penalties for drug possession for personal use as part of a larger set of related public health and legal reforms designed to improve carefully selected outcomes."

In 2022, the AMA adopted a measure in support of expunging cannabis records in states that had developed legal cannabis markets.

Business

Hemp-derived Happi. Cannabis-infused beverage brand Happi, known for its low-dose seltzers, announced a partnership with leading edibles company Wana Brands as its exclusive hemp-derived gummy partner.

The new hemp-derived THC gummies, featuring a unique 1:1:1 formulation of 5mg CBD, CBG, and THC in two flavors, are being launched for shipping nationwide.

🇺🇸 State of the Industry

Maryland: Governor Wes Moore signed an executive order pardoning 175,000 misdemeanor cannabis convictions.

New York: State Senators Liz Krueger and Gustavo Rivera issued a joint statement in response to reports of internal concerns regarding the operation of New York's Cannabis Social Equity Fund. 

North Carolina: The Senate revived the possibility of legalizing medical cannabis, but hurdles in the House remain.

📊 Business

The Cannabist says farewell to Florida

The cannabis MSO disclosed a series of business transformation initiatives including its planned divestiture of its entire asset portfolio and license in the Sunshine State.

🤝 Deals

MediPharm Labs makes acquisition from Remidose Aerosols

The pharmaceutical company specializing in precision-based cannabinoids entered into a licensing agreement to acquire the exclusive rights for advanced medical cannabis delivery method technology products with existing Canadian direct-to-patient medical platform and international medical distributor customers.

💨 Quick Hitters

• Vertically integrated cannabis giant Trulieve agreed to pay a $350,000 fine related to the death of an employee who suffered an asthma attack at its Massachusetts production plant.

• New York cannabis retail brand The Travel Agency opened a third recreational dispensary in Downtown Brooklyn a few doors down from Jay Z’s old stash spot.

• Retired NBA player Al Harrington is opening a cannabis dispensary in the Bucktown neighborhood of Chicago.

• The California State Fair will allow onsite cannabis sales and consumption for the first time this summer.

• The Portland Pickles, a summer collegiate baseball team, is set to become the first sports team to sell cannabis-infused beverages during a live sporting event.

📚 What We’re Reading

• The dirty secret of California’s legal weed (Los Angeles Times)

• THC Drinks Face High Scrutiny as Regulators Weed Out Loopholes (Cheddar)

• SEC fines short seller over secret payments to publisher of bearish reports on cannabis stocks (MarketWatch)

• Michigan topped California in weed sales. How did that happen? (Crain’s)

• California's largest cannabis store is a living nightmare (SFGATE)

• A $29 Billion Weed Market Fights to Diversify (Bloomberg)

• Now bankrupt, MedMen owes millions to other companies. Meet the cannabis CEO who called them out (Los Angeles Times)

🎙️ Potcasts

• How Grown Rogue's Craft Cannabis Model is Disrupting the Industry (The Dime)

📼 Video of the Week

🔎 Job Board

• Senior Software Engineer

  • Dutchie

  • $165,000

• Senior Data Analyst

  • LeafLink

  • $100,000—$130,000

• E-Commerce Evangelist

  • BLAZE

  • $80,000—$90,000

📨 Puff, Puff, Pass Reeferal Program

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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