Welcome to Insider Cannabis, our weekly newsletter where we bring you an overview of the deals, trends and people driving the global multi-billion dollar cannabis boom.
In some ways, the struggle over how to legalize cannabis is a microcosm of larger social debates, pitting social justice activists against more free market-oriented people.
Take the debate this week on the SAFE Bank Act.
The cannabis banking bill passed the House for the fifth time last night. This go-around, the wording of the bill – which would open up the banking system to cannabis companies and allow consumers to pay with credit cards – was put in place in the National Defense Authorization Act.
The NDAA usually passes the Senate without much fanfare. Corn Senate Majority Leader Chuck Schumer, Senator Ron Wyden, and Senator Cory Booker have their own more comprehensive cannabis bill, Cannabis Possibilities and Administration Act. Booker said that he’s against it adding banking protections for cannabis to the Senate version of the NDAA ahead of broader criminal justice reforms.
It remains to be seen whether SAFE will be included in the Senate version of NDAA. Many cannabis activists say the SAFE law would only help banks and large cannabis companies make more money in the industry. They would prefer to see full scale legalization or at least deregistration and other criminal and social justice measures adopted first.
But supporters of the SAFE law say it is a necessary tool to help protect and grow small businesses, as many social equity licensees are unable to obtain loans. or open lines of credit to start a business, and dealing with everything in cash is a security risk.
In other news, Amazon doubled down on his support for cannabis legalization and said he was lobbying the federal government for legalization. Aurora Cannabis closed a major facility and cut around 8% of its workforce. The company has postponed its results until next week. Tilray firm his Nanaimo, British Columbia installation too.
California will be addition of a cannabis contest to its state fair, where farmers will show off their best buds.
I will be moderation of a panel on the advisability of cannabis in New York to Prohibition partners X Cannabis trade conference at New York City to Wednesday September 29. I look forward to seeing many of you in person and let me know if you will be around.
– Jérémy Berké (@jfberke)
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Here’s what we wrote this week:
Investors push back founders of struggling cannabis startup Civilized. We’ve got our hands on the full memo.
Investors are pushing Civilized founders Derek and Terri Riedle out of the company, according to a memo released to investors on Monday and obtained by Insider. Investors say founders Derek and Terri Riedle have taken the company into debt.
A startup accelerator that worked with J&J and L’Oréal embarks on psychedelics as the industry goes mainstream
A new accelerator program targets early-stage psychedelic-focused ancillary startups, in the latest sign that psychedelics are entering the mainstream and fundraising is lagging behind.
The House has just passed cannabis reforms as part of a defense bill. Here’s what would change for businesses and their customers.
The United States House of Representatives re-passed the Secure and Fair Enforcement Banking Act, or SAFE Banking Act.
Lawmakers incorporated the cannabis banking bill into the National Defense Authorization Act that was passed in the lower house on Thursday. It is not clear whether the Senate will include cannabis reforms in its version of the defense package once the upper house reviews it.
- New York Governor Kathy Hochul Wednesday announcement two other people named – Ruben R. McDaniel, III and Jessica garcia – on the board of directors of the Office of Cannabis Management, the regulatory body responsible for the development of the adult cannabis industry in the state.
Transactions, launches and IPOs
- Cannabis technology company To dispense noted Tuesday that he had raised a $ 2 million fundraising round led by NextSee companies and Poseidon Asset Management.
- Michigan-based cannabis company SKY MINT said Tuesday that she raised $ 78 million and acquired 3Fifteen Cannabis. Investors in the tour include Tropics LP, a subsidiary of The joint venture of sundial producers SunStream Bancorp Inc., and Merida Capital Holdings.
- Christine De La Rosa, the CEO of People’s ecosystem, is raise a fund of 50 million dollars invest in BIPOC and cannabis companies run by women.
- Psychedelic Company Delic Holdings Corp said monday he would acquire Ketamine Wellness Centers Inc, expanding its footprint to 12 clinics across the United States, in a $ 5 million cash and stock deal.
- Crain Communications is acquiring cannabis financial media site Green Market Report. Terms of the deal were not disclosed.
- The House of Representatives Thursday passed SAFE Bank Act, a cannabis bank bill, as part of the National Defense Authorization Act. It is not clear whether the Senate will include cannabis reforms in its version of the defense package once the upper house reviews it.
- Italy is expected to hold a referendum on legalizing cannabis early next year after organizers gathered all 500,000 signatures in a week, Reuters reports.
Research and data
- A new report from the Association Institute for Economic Policy found that unionized cannabis workers could earn $ 8,690 more per year than their non-union peers.
- Psychedelic Company Atai Life Sciences noted Tuesday that his platform company DemeRx began early-stage clinical trials of ibogaine to treat opioid use disorders.
- Cannabis Data Company BDSA said in a report that cannabis sales will hit $ 31 billion this year, a 41% increase over last year. By 2026, BDSA expects cannabis sales to exceed $ 62 billion.
- MedMen released its fourth quarter and full year 21 results Thursday. The company reported fourth quarter revenue of $ 42 million and a net loss of $ 46 million. For the full year, the company reported revenue of $ 145 million and a net loss of $ 157.6 million.
What we read
Why Amazon wants to make sure everyone knows it’s totally cool to smoke weed now (Insider)
Illegal marijuana farms take West’s water in ‘blatant theft’ (Associated press)