🌿 Weedmaps delists from Nasdaq, Vireo Growth advances acquisition strategy, and Whitney Economics highlights 280E tax burden

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:

…and more. Let’s get to it.

Was this email forwarded to you?

Stock exchange. WM Technology, the parent company of cannabis marketplace Weedmaps, announced it will voluntarily delist its Class A common stock and warrants from Nasdaq.

The Board determined that delisting from Nasdaq best serves the company and its shareholders after weighing several factors, including how a Nasdaq listing limits its ability to operate and pursue strategies in cannabis markets, challenges in creating long-term value in a changing industry, low trading liquidity driven by limited investor interest and analyst coverage, and the significant costs and management resources required to meet ongoing regulatory and reporting obligations.

Portfolio expansion. Vireo Growth has moved to significantly expand its position in the cannabis industry through the completion of two previously announced acquisitions.

The company has closed its acquisition of Eaze, expanding its presence in cannabis retail and delivery while strengthening its direct-to-consumer platform within the broader cannabis market. Following the transaction, Vireo will have operations in 10 U.S. states, encompassing over 160 active retail dispensaries and about 800,000 square feet of cultivation and production facilities.

It has also finalized its acquisition of The Hawthorne Gardening Company from Scotts Miracle-Gro, adding a major cultivation and grow supply business to its portfolio and further building out its upstream cannabis infrastructure.

Tax burden. Whitney Economics has released an updated analysis examining how Section 280E of the U.S. tax code continues to distort financial outcomes for legal cannabis operators, reinforcing that state-licensed businesses are often taxed at effective rates far higher than traditional industries because they cannot deduct ordinary business expenses.

The report highlights that this tax treatment compresses profitability, limits reinvestment, and contributes to persistent financial strain across the regulated cannabis sector, even as market revenues show long-term growth potential.

Alabama: The first medical cannabis dispensary is expected to open as early as next month, finally beginning patient access under the state’s medical cannabis program after years of licensing and legal setbacks.

Massachusetts: Lawmakers have reached a deal on a major cannabis reform bill that would overhaul the Cannabis Control Commission and adjust industry rules, including licensing, medical dispensary requirements, and purchase limits, as part of efforts to stabilize the state’s maturing cannabis market.

North Carolina: An advisory council is urging state officials to establish a regulated market for adult-use cannabis sales through licensed retailers to replace the largely unregulated cannabis market and improve safety and oversight.

Pennsylvania: Governor Josh Shapiro contends the state should legalize and regulate adult-use cannabis to generate about $1.3 billion over five years that could be reinvested in public services like education, safety, and economic development.

Texas: Local cannabis businesses are suing the state to block new regulations that effectively ban smokeable hemp products and impose steep new licensing fees, arguing the rules exceed state authority and could destroy much of the legal hemp industry.

Ethos Cannabis to close on 4/20

The multi-state operator will close all of its dispensaries across Massachusetts, Ohio, and Pennsylvania on April 20th, giving employees a paid day off and reframing the cannabis holiday away from discount-driven retail toward patient education, community, and appreciation as part of its month-long “More Than a Day” campaign.

Looking to get your business or brand in front of cannabis enthusiasts, entrepreneurs, and executives?

Email us here to learn more!

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

*Did someone forward you this newsletter? Sign up here.