🤝 Verano acquires one of two VA License ($90M) and AZ Operations ($15M) from The Cannabist Company
LeafLink acquires Dama Financial, upsizes Series D to $125M. $200M Mercer Park Opportunities Corp. (SPAC). 42,000 comments during DEA comment period, 92.5% favorable. CA State Fair Cannabis Awards.
💬 For any Premier League fans, I’m running an FPL league for Cannabis friends, let me know if you’re interested in participating. Season starts Friday, August 16th.
🌿 Industry
Third Annual CA State Fair Cannabis Competition Golden Bear Trophy Winners. Nine Cannabis Products Crowned 2024's Best in California in Categories Spanning Flower, Concentrates, Edibles and More. — Embarc
Competition entries underwent rigorous scientific testing by SC Labs and blind tasting by Budist’s professional judging panel—a group of cannabis connoisseurs who reviewed and judged each product using its proprietary, 100-point standardized rating system
Unprecedented Support for Cannabis Scheduling Reform Revealed by Data from the DEA Comment Period. With over 42,000 comments submitted, the response was not only substantial but also decisively in favor of rescheduling. — Headset
92.45% of comments were in favor of changing cannabis's schedule with only 7.55% were against any change
Among only those in support, 61.7% advocated for complete descheduling of cannabis while 38.3% supported rescheduling to a less restrictive category
The trades that could bring down short-seller Andrew Left. U.S. authorities filed criminal and civil charges against Andrew Left, a prominent face of the activist short-selling industry, alleging he had for years manipulated the market and defrauded investors with misleading claims about his trades. — Reuters
The SEC and the U.S. Department of Justice focused on how Left publicly represented his positions in high-profile stocks (which includes Cronos Group) versus how he was really trading them, alleging he exploited his influence to manipulate the shares and reap quick profits
Left decided to issue a short publication on Cronos Group (CRON), telling one Portfolio Manager “we can DESTROY CRON” and through a “cron short we could get 2 bucks,” indicating he believed that he would make $2 per share from trading around a publication on CRON
Later that same day, Left published a report and sent a tweet to his readers recommending that they sell CRON and that the true valuation of the company was $3.50/share: “$CRON tgt price $3.5. Everything that is contaminated about the Cannabis space. ALL HYPE with possible securities fraud.” The tweet linked to the report which was titled, “Cronos: The Dark Side of The Cannabis Space”
An hour later, Left posted another tweet to alert his readers that he was going to appear on CNBC Fast Money to promote his recommendation: “Andrew Left from Citron on CNBC Fast Money 5:25pm ET to discuss why $CRON is the most overhyped of all the ‘pot stocks’ with a target price of $3.50”
This statement was materially false and misleading because, by the time of that interview, Left had exited more than 75% of his short exposure at well above $3.50, despite representing to his readers that this was the true valuation of the company
Left later bragged to Portfolio Manager One that he had received 100 emails on CRON and that “NOT 1 of them was intelligent . . . . I swear not 1 person with a smart answer not 1” and further bragged that “i could write a tweet about a part 2 and get another $1”
Ohio Regulators Begin Marijuana Dispensary Inspections To Certify Them For Imminent Recreational Sales Launch. While none of the 133 dispensaries with provisional licenses have received certificates of operation yet, regulators have begun conducting inspections of certain facilities. — Marijuana Moment
In order for a dispensary to secure a certification, applicants that received a provisional licenses must first prove that they’ve updated their point-of-sale technology to distinguish between medical cannabis and adult-use sales, enhance security and verify that they will be able to maintain an adequate supply
The expectation is that dispensaries that are in compliance with the updated rules could become operational imminently, though the latest they can be issued under state law is September 7
Cookies dispensary to pay $350K as part of settlement with New Mexico Cannabis Control Division. An Albuquerque-based Cookies dispensary reached a settlement with New Mexico’s CCD after being accused of violating the state’s Cannabis Regulation Act. — KRQE
Blue Whale Enterprises Inc., which operates Cookies, signed off on the settlement agreement on July 16. The violations took place during the dispensary’s grand opening event on Nov. 18, 2023, according to the settlement agreement
As part of the settlement, Blue Whale Enterprises Inc. will have to pay the Cannabis Control Division $50,000 for the five violations. It will also have to pay $300,000 in lieu of closing its doors for two weeks
CA Department of Cannabis Control (DCC) shutters California Cannabis Testing Labs for engaging in activity that poses a threat to public health. California regulators canceled the license of a marijuana testing lab that allegedly faked test results and tampered with equipment so it could offer passing test results to cannabis products potentially contaminated with dangerous pesticides and mold. — MJBizDaily
The July 24 notice from DCC Deputy Director Michael Cheng lists 20 alleged violations uncovered at California Cannabis Testing Labs (CCTL)
CCTL’s laboratory director, who was not identified in the DCC’s letter, also allegedly signed a certificate of analysis (COA) for a cannabis product that reported no detection of the pesticide chlorfenapyr. But a test conducted later by the state “on samples collected from the same batch” found nearly 600 times the amount of chlorfenapyr allowed under state law, according to the DCC
The DCC’s citation doesn’t mention that CCTL had sued the DCC in late June after the agency threatened to revoke its license
Missouri hikes allowable amount of vitamin E acetate, culprit in vape crisis. Previous regulations required vitamin E acetate testing for cannabis concentrates and inhalables, but the updated rule applies to concentrates, infused plant material, pre-rolls and vapes. — MJBizDaily
Missouri NORML Coordinator Dan Viets said “there appears to be no rational explanation for why the state of Missouri would dramatically increase the amount of a very toxic substance in legal cannabis products when none of it whatsoever should be present in them”
14 Months After Legalization, Minnesota Finally Opens Marijuana Business License Application Window. The Office of Cannabis Management (OCM) opened its application window for a batch of preapproval licenses for cannabis businesses that have been verified as involving social equity applicants. — Marijuana Moment
There will be other windows. But this first one was created to give social equity applicants an early mover advantage
Others who must wait until next year, when final rules are approved won’t be able to move forward with the assurance that comes with a license in hand
Only 100 microbusiness licenses will be issued: 23 mezzobusinesses, 38 retailers, 13 cultivators. All together, there are 280 licenses of various types included in this preapproval process
Half of eligible marijuana social equity retailers in Illinois at risk of losing licenses. Five years after establishing one of the first state-run social equity programs, only half of Illinois’ eligible marijuana retailers are operational. — MJBizDaily
Dozens of licensees who have yet to open their businesses are facing the real possibility of losing their conditional licenses as expiration dates on those permits sunset. In Illinois, retail licenses can be sold or transferred only after stores are operational, inspected and approved by state regulators
According to IDFPR statistics through June 21, 103 conditional social equity retail licensees have received a 15-36 permit, a state requirement to sell commercial or medical marijuana. That leaves at least 96 licensees still awaiting final approval, the majority of whom already have seen their deadlines to open pass
Delaware Governor Signs Marijuana Bills, Including One To Let Medical Dispensaries Begin Recreational Sales Early. The governor of Delaware has signed several marijuana bills into law, including measures that would allow existing medical cannabis businesses in the state to begin recreational sales on an expedited basis, transfer regulatory authority for the medical program and make technical changes to marijuana statutes. — Marijuana Moment
All three pieces of legislation were sponsored by Rep. Ed Osienski (D) and Sen. Trey Paradee (D) and were given final approval by Gov. John Carney (D)
The dual licensing legislation is meant to allow recreational sales to begin months earlier than planned, though critics say the legislation would give an unfair market advantage to larger, more dominant businesses already operating in multiple states.
Trulieve contributed another $5M to Smart & Safe Florida, bringing total to $60M
Missouri sold more cannabis ($709M) than Colorado during 1H 2024
27.3% of Cannabis companies are profitable, up from 24.6% in 2023 but down from 42.4% in 2022, according to survey by Whitney Economics
Most of Kamala Harris’s Potential VP Running Mates Support Marijuana Legalization—And Some Have Even Signed It Into Law
Autumn Brands seeing success with natural pest management
💵 Deals
Verano acquires Virginia License and Associated Operations and Arizona Operations from The Cannabist Company. The Cannabist Company will maintain its Virginia operations in the Richmond region (HSA 4), with ~80,000 square feet of cultivation and manufacturing capacity, five retail locations in operation and one in development.
Virginia Operations: one cultivation and production facility and six dispensaries
Verano will become the sole cannabis operator and retailer for HSA 5 in Eastern Virginia. HSA 5 is home to nearly two million residents, serving populated areas such as Virginia Beach, Chesapeake, and Norfolk
Total consideration for the Virginia Operation, subject to adjustment, is $90M ($20M cash, $40M stock, and $30M promissory note)
Arizona Operations: one cultivation facility, one production facility, and two dispensaries
Verano’s total Arizona cultivation footprint will expand to 90,000 sq ft across three facilities
Verano will operate eight dispensaries in Arizona adding Tempe and Prescott
Total consideration for the Arizona Operations is $15M cash
LeafLink acquires Leading Cannabis Banking Platform Dama Financial to offer Industry Access to Secure, Compliant, & Reliable Banking Solutions. This acquisition lays the groundwork for a future integrated banking solution, signifying a monumental step towards eliminating one of the most persistent hurdles facing cannabis operators: the lack of access to secure, reliable, and compliant financial services. The LeafLink platform currently offers a suite of services for cannabis brands and retailers, including integrated tools like order and category management, payments, data and analytics and advertising. As a result of strong performance, organic growth opportunities, and focused mission to be the B2B operating system for the regulated cannabis industry, LeafLink recently upsized its Series D fundraising round from $100M to $125M. Investors in the Series D financing include CPMG, Nosara, L2 Ventures, Thrive Capital, and Tiger Global. Dama Financial had raised $24M total from investors that included Edgehill Venture Partners, Entourage Effect Capital, and Oak HC/FT.
Mercer Park Opportunities Corp. (SPAC) Completes $200M IPO. Mercer Park Opportunities is a newly organized SPAC for the purpose of effecting an acquisition of one or more businesses or assets, by way of a merger, amalgamation, arrangement, share exchange, asset acquisition, share purchase, reorganization, or any other similar business combination involving the Company. Mercer Park Opportunities intends to focus the search for target businesses that operate in cannabis and/or cannabis-related industries in the U.S.; however, Mercer Park Opportunities is not limited to a particular industry or geographic region for purposes of completing a qualifying acquisition. Mercer Park Opportunities intends to focus on acquiring one or more companies with an estimated aggregate enterprise value of up to $1B. Jonathan Sandelman is serving as CEO and Joshua Snyder as Head of M&A.
Ascend Wellness Holdings Closes $235M Private Placement of 12.75% Senior Secured Notes due 2029. The Notes were issued at a price of 94.75% of face value. The Company used the net proceeds of the Notes, together with cash on hand, to prepay $215M of principal amounts outstanding under its existing term loan.
Organigram to Bolster Auto-Flower and Rare Cannabinoid Portfolio with Partial Third Tranche Investment of $1M into Phylos. As part of the expanded milestone, Phylos is required to deliver 21 unique auto-flower seed varietals for testing and phenotyping by Organigram no later than September 30, 2024, followed by a second cohort of 21 auto flower seed varietals to be delivered no later than January 31, 2025. In addition to the auto-flower seeds, Organigram received an expanded genetics license from Phylos that, in addition to THCV, includes access to high potency CBG, CBC and CBDV seed based cultivars. Including the current partial third tranche advance, Organigram has now advanced an aggregate of US $7 million to Phylos in the form of a convertible loan funded in tranches.
📄 Company Updates
Weedmaps Partners with NuggMD to Launch Medical Cannabis Card Program. This initiative enhances access to medical cannabis by connecting potential patients on Weedmaps with the NuggMD telehealth platform, creating a full circle e-commerce experience when the patient returns to shop and learn more about medicinal cannabis products on Weedmaps. The first phase of the program is currently active in five of the 28 states that NuggMD serves: Florida, Oklahoma, Pennsylvania, West Virginia, and Louisiana.
Petalfast Expands Cannabis Sales & Marketing Platform to New York. The launch comes on the heels of petalfast’s recent acquisition of flow distribution’s sales and distribution subsidiaries in arizona. The company’s sales and retail engagement services help emerging and growing cannabis brands sell into and through retail channels – with proven success in California and Arizona, petalfast will help cannabis brands thrive in New York’s growing market.
Aurora Cannabis Receives Expanded Cultivation and Unique Research Licenses for German Facility. Aurora has been granted two licenses by the Federal Institute for Drugs and Medical Devices (BfArM) under Germany's new Medical Cannabis Act (MedCanG). Aurora's license grants the company continued domestic cultivation, which has been underway for two years now. Under the new license, Aurora may also cultivate an approved additional product, and plans to expand their offerings to the rapidly growing German patient base. Aurora will also receive a dedicated R&D license, allowing for the trial of up to seven additional novel cultivars at the company's local EU GMP facility in Leuna, Germany.
Uber Eats x Leafly partner to bring cannabis delivery to Albertans.
🏬 Retail
Simply Pure opens in Trenton, NJ. The entirely Black-owned cannabis dispensary was founded by husband and wife Scott Durrah and Wanda James. Before the idea for the space was conceived in 2010, the couple launched Apothecary of Colorado, the “first Black-owned and veteran-owned dispensary” in the country. Simply Pure is a 6,000-sq ft brick-and-mortar dispensary, supported not only by James and Durrah but Tahir Johnson, acting president of the Minority Cannabis Business Association.
Curaleaf Expands New York Retail Presence with Two New Medical Dispensaries and Adult-Use Sales at Two Existing Stores. The new dispensaries are located in Rochester and Syracuse. Curaleaf also began co-located adult-use sales at two existing medical store, Plattsburgh and Forest Hills. This expansion will increase the Company's retail footprint in NY to six total, with three co-located adult-use and medical locations, and three medical-only locations.
Trulieve Opens Medical Cannabis Dispensary in Ocala, Florida.
🌱 Product
BLAZE® Introduces New Web-Based Cannabis POS System. The BLAZE POS system has been rebuilt to work cross-platform providing new flexibility for cannabis retailers. This strategic change helps burgeoning retailers stay technologically competitive and reduce upfront costs. Single-shop and Enterprise-level operators can now realize significant cost-savings when migrating from other systems by repurposing their existing hardware assets. Transitioning to a web-based platform allows BLAZE to increase the pace of innovation by leveraging its inherent flexibility and accessibility. New features and improvements can be deployed faster to enhance the user experience and ensure the software remains at the cutting edge of technology. The new UX and UI simplifies the most common tasks used to service customers. The result is a streamlined user flow that empowers front-of-house staff to do more with fewer clicks and with intuitive iconography, significantly reducing the learning curve for new employees.
Aeropay launches proprietary bank aggregator Aerosync. Aerosync addresses many challenges posed to the fintech industry by existing bank aggregators. It covers over 12,000 banks nationwide, establishing direct relationships with large and small financial institutions to offer secure access to essential data to demystify open banking. Aerosync's flexible connectivity allows users to easily add, remove, and reorder financial institutions while integrating seamlessly with Aeropay's account-to-account payment solutions.
Beboe (GTI), its luxury cannabis brand created for those looking for a mindful and elevated experience, has entered the New York market. The socially-dosed suite of Beboe cannabis products is available at all RISE Dispensaries across New York and select licensed retail partners. Beboe is a premium cannabis brand residing at the intersections of luxury, style and wellness, with deep ties to the Empire State. Founder Scott Campbell built the renowned Saved Tattoo studio in Brooklyn, attracting high-profile celebrities and other luxury loving clients.
Planet 13 Launches new Lifestyles brand company with signing of first Sponsored Athlete, UFC Title Contender Chito Vera. Chito is scheduled to fight live nationally on ABC TV at UFC Abu Dhabi on August 3, 2024. A win in this fight for the Ecuadorian UFC star could lead to a title shot. As part of the partnership, Chito will be promoting Planet 13’s apparel and brand on his social platforms and his podcasts, along with media appearances. He'll also be making appearances at events for Planet 13 in Nevada, California and beyond. Planet 13 Fight Club will be a featured sponsor of Chito's gym in Costa Mesa, California, a stone's throw from Planet 13 Orange County.
Old Pal expands into New Jersey and Expands Product Offerings in Maryland and Virginia with The Cannabist Company. The Cannabist Company recently launched Old Pal classic and infused blunts; 2-pack pre-rolls; and 7g Ready to Roll kit in New Jersey. Old Pal is also expanding its product line in Maryland and Virginia. Old Pal 14-pk pre-rolls and 1-oz flower offerings, as well as .5g and 1g vape carts.
🧔 People
The exodus at NY’s Office of Cannabis Management continues. At least four high-ranking employees at New York’s Office of Cannabis Management have recently resigned their positions, a month after NY Cannabis Insider reported on other high-profile departures from the agency. The OCM confirmed the agency received notices of resignation this week from Deputy Director of Licensing Danielle Holmes, Director of Health and Safety Nicole Rosa and First Deputy General Counsel Patricia Piskorski Heer. Additionally, General Counsel Linda Baldwin will leave the OCM once a replacement is hired.
Organigram Appoint Craig Harris to Board of Directors. Craig Harris brings over 20 years of experience as a commercial lawyer, with a background in private practice and legal and regulatory engagement. He is currently the Assistant General Counsel – Corporate & Commercial Legal at British American Tobacco (BAT).
🎙️ Interviews
Jason Vedadi, Story Cannabis | Cannabis Business Times
The Kamala Catalyst is Coming for Cannabis w/ Hirsh Jain | Cannabis Investing Network
Runner’s High is Real: Weed & Workouts, Part 1 | How to Do the Pot
Mid-2024 State Catalyst Review w/ Hirsh Jain | Higher Exchanges
Jill Ellsworth: Why are we debating selling moldy products | Cannabis Equipment News
Jarrett Annenberg, NewLake Capital Partners | The Green Rush