February 18 2023,
THE BIG IDEA
Today’s newsletter has good news for the industry, for a change. Can it continue?
- SCOOP: Eaze tells investors the worst is over
- Twitter to accept THC ads
Hope you find it valuable,
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WHAT YOU MISSED IN WEEDWEEK CALIFORNIA PRO
SCOOP: Eaze tells investors the worst is over
A private Eaze presentation shares the company’s financial results and anticipated path to profitability. The February 2023 deck, which leaked to WeedWeek, says the money losing company has regained traction in California, as it pursues rapid growth in Florida.
In addition to the preliminary results and projections of a closely-watched private company, the deck offers a glimpse into how a major player views the increasingly national market.
HOW ABOUT A BETTER JOB?
TWITTER WELCOMES THC ADS
Elon Musk’s Twitter became the first major social network to accept THC ads. The company said it has “taken measures to relax” it’s advertising policy, allowing brands and products to promote themselves. Trulieve said it was the first MSO to buy. PAX, and surely many more, are coming soon.
- “It will pressure other platforms to re-evaluate their positions,” Trulieve CMO Gina Collins told Adweek.
- As a private company, Twitter faces fewer regulatory hurdles than Meta, Google or Snapchat.
The industry is well aware that under Musk’s leadership Twitter has been hemorrhaging advertisers. Initially, PAX’s VP of Marketing Luke Droulez said that at first there would be “nothing overt,” in the ads.
- Twitter said it would be the first major social platform to allow ads from weed brands.
- Vice looks into Russian Oligarch Roman Abramovich’s Curaleaf investment. It also notes that Curaleaf chair Boris Jordan’s Measure 8 fund, which received money from Abramovich, invested in Eaze, Tilt Holdings and other industry companies. Eaze said it wasn’t aware of the Abramovich connection. TILT said the individuals responsible were long gone.
- Missouri tightened its gifting rules.
Green Market Report
- “Finally some good” but not that good, news from the IRS.
- Wholesale platform LeafLink raised a $100M Series D. We haven’t been seeing equity deals that size for a while. The company also said co-founder and CEO Ryan G. Smith will become executive chairman and Artie Minson has been promoted to CEO.
- The hop latent viroid blight is a national industry crisis.
- Trulieve contributed another $5.5M to advance a 2024 Florida REC ballot initiative. The company has now thrown in about $25M. LinkedIn activist Greg Welch doesn’t like the proposal, because it doesn’t allow homegrow, and other reasons.
- Software company Forian is exiting the industry, selling its BioTrack software to AllLeaves. BioTrack recently won New York’s REC track and trace contract.
State and local:
- In Virginia, a bill to allow REC sales in 2024 fell short.
- A Washington state House committee passed an interstate trade bill. A companion bill cleared a Senate committee last month.
- New York City mayor Eric Adams acknowledged unlicensed shops have little reason to close.
- An Indiana decriminalization bill “took a historic step” but will go no further this year.
- The Sacramento Bee interviewed Luke Scarmazzo who just got out of prison after serving 14 years for running a MED shop. “To everyone imprisoned, Scarmazzo has a message: “We’re coming for you guys.”
Fun and interesting: