May 19 2022,
THE BIG IDEA
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In the newsletter:
- NY market heats up
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WHAT YOU MISSED IN WEEDWEEK CALIFORNIA PRO
Fresno’s hard fought licensing process
It’s one of the California market’s biggest remaining prizes. With a population a bit over 500,000, Fresno is the state’s fifth largest city, and the biggest without a dispensary.
But as its first pot shop prepares to open, the city’s licensing process has been engulfed by litigation, insinuation and rancor.
$69M Canopy deal secured, Jetty Extracts makes plans
Canadian operator Canopy Growth has paid $69M for the right to acquire California concentrate brand Jetty Extracts, once federal law permits.
In the time until Canopy can close the acquisition, Jetty CEO and co-founder Ron Gershoni said he plans to prepare Jetty for national expansion. For it’s first nine years, Gershoni says the company has been undercapitalized. Now it gets to spend some money.
PLUS: Gov. Newsom’s tax plan, exclusive sales data from BDSA, The Emerald Cup takes LA and lots more…
NEW YORK MARKET BEGIN HEATS UP
MJUnpacked held its first New York conference (second overall) in midtown this week and the Big Apple is looking more like a weed town:
- On Wall Street, Bright Green, a pre-revenue company that plans to produce legal weed for MED research started trading on the NASDAQ.
Green Market Report
- Cartoonist and MED activist Brian “Box” Brown sees something to like in New York’s legalization process.
- Upstate, MSO Cresco Labs scored a $38M tax break for a facility it’s building in Ulster County.
- Hoping to score a license? Get to work.
- Politico says support for legal REC will be Democratic Senate Candidate John Fetterman’s “not-so-secret weapon,” in Pennsylvania.
- The Justice Department is urging the Supreme Court to reject a case involving workers comp.
- Industry lender AFC Gamma said it had secured a $60M credit facility from two unnamed FDIC insured banks.
- Offering in store product samples works, and it’s catching on, despite legal and sanitary hurdles.
- Customers can now place delivery orders through Leafly’s app.
- MSO Columbia Care has had good luck with influencer marketing on app Cameo, in a program developed by marketing tech shop Fyllo.
- Arcview Group has a new crowdfunding platform.
- Viridian Capital Advisors does a little math on MSO EBITDA multiples.
- MG Retailer digs up 15 leading investment firms.
- Headset digs into the purchasing patterns of Gen Z consumers.
State and local:
- Rhode Island lawmakers sent competing REC bills to the House and Senate floor.
- A Delaware bill to create a REC market fell short in the House. Gov. John Carney (D) expressed reservations about a decriminalization bill on his desk.
- Ohio awarded 70 new dispensary licenses, potentially doubling the state’s total.
- King County (Seattle) created a cannabis task force to stop dispensary robberies.
- Oklahoma launched its first seed to sale program, powered by Metrc.
- NBC News reports on how an equity push left Detroit a legal weed desert.
Health and science:
- A Stanford study found a link between weed smoking and heart disease, but a soy-derived supplement may help.
- Tracking software leader Metrc said co-founder and chair Jeffrey Wells has transitioned from CEO to Chief Visionary Officer. He’s been replaced by CFO Michael Johnson. The company also promoted COO Lewis Koski to Chief Strategy Officer. Steve Asma joined the company as SVP, customer experience.
- Boston law firm Prince Lobel Tye is opening a New York cannabis practice led by David C. Holland, James Landau and Douglas S. Trokie.
- MSO TerrAscend named Lynn Gefen Chief Legal Officer.
- Jessica Ferranti joined Grateful Goddess Organics as managing partner, director of sales and client relationships.
- California sublinguals brand Kin Slips has a new hemp-derived version of its Essentials line for the national market. (pictured)
- California brand Calexo is launching a beverage brand Watercolors and an accompanying streetwear line.
- Cookies impresario @berner415 touted a new social venture @SocialClub, launching in partnership with Weedmaps.