CBD startup Prima raises millions

Welcome to Insider Cannabis, our weekly newsletter where we're bringing you an inside look at the deals, trends, and personalities driving the multibillion-dollar global cannabis boom.

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Welcome to another edition of Insider Cannabis.

As the national drumbeat for cannabis legalization marches on, we're all waiting for Senate Majority Leader Chuck Schumer's promised comprehensive reform bill.

May is rapidly coming to a close, so it's looking more and more likely we won't get to see that bill before the end of the month. But Congressional Democrats, for their part, aren't twiddling their thumbs.

Sen. Ron Wyden, along with a bipartisan group including Sen. Rand Paul, released a bill that would kick it to the FDA to regulate CBD. And Rep. Jerrold Nadler is reportedly launching a new version of the MORE Act, a social-justice-first cannabis de-scheduling bill, as soon as next week.

Things are moving.

What else?

Catch me talking about the growth of the cannabis industry and the boom in edibles on ABC's Nightline. I also went on the Cannabinoid Connect podcast, where I had a wide-ranging discussion with host Kevin Carrillo about federal cannabis policy, state-by-state legalization, industry deals, and more.

And, I moderated a panel for Prohibition Partners with Steven Hawkins of the US Cannabis Council and Rob Sechrist of Pelorus Equity Group. If you caught it, let me know what you thought.

Let's get to it.

- Jeremy Berke (@jfberke) & Yeji (@jesse_yeji)

If you like what you read, share this newsletter with your colleagues, friends, boss, spouse, strangers on the internet, or whomever else would like a weekly dose of cannabis news.

Here's what we wrote about this week:

The CEO of Columbia Care shares how he quietly built one of the largest footprints in the cannabis industry in order to woo a strategic partner

Columbia Care's CEO told us that having a national footprint will be key for wooing a strategic partner. His strategy: Expanding into new states one-by-one and ensuring that each is profitable.

Still, consumer companies aren't likely to invest in US cannabis until there is more clarity from the federal government.

The CEO of hot CBD-skincare startup Prima dishes on how he got VCs like Greycroft and Lerer Hippeau to invest

CBD skincare startup Prima closed a $9.2 million round led by Greycroft, Lerer Hippeau, and other firms. CEO Christopher Gavigan said it's critical to communicate the startup's growth plan to investors.

VCs told Insider that the round was 'competitive,' as Prima is in high demand.

CBD startup Trip raises $5 million as it plans US expansion

London-based CBD-drinks company Trip raised $5 million to fund its expansion into the US and further across Europe. Backers include Maria Raga, the CEO of the secondhand-fashion app Depop, and the venture capitalist Christian Angermayer.

How a Facebook engineer and a Microsoft engineer cofounded one of California's top cannabis distributors

Cannabis distribution brand Nabis works with 80 cannabis brands and over 700 dispensaries. Here's a look at how childhood best friends Vince Ning and Jun Lee created and grew the startup.

Executive Moves

• Canopy Growth announced on Thursday that Martha Stewart would become an official strategic advisor.
• Travis Tharp will take over from Erik Knutson as CEO of cannabis beverage company Keef Brands. Tharp was previously president and COO, and Knutson will remain on the board.

Deals, launches, and IPOs

• Aurora Cannabis filed for a $300 million stock sale on Thursday. The filing mentions a possibility of a US acquisition, MarketWatch reports.
• Cannabis SPAC Mercer Park Brand Acquisition Corp. said on Monday that it has upsized a previously announced equity investment to include $50 million from TPCO Holdings Corp. In total, Mercer Park has raised $135 million for the transaction.
• HEXO Corp announced on Monday it would acquire 48North Cannabis Corp in a C$50 million stock deal.
• MedMen is set to raise $10 million through a private placement to open new dispensaries.
• Curaleaf said on Monday it would acquire Colorado-based cannabis cultivator Los Sueños for around $67 million in cash and stock.
• Canadian cannabis company High Tide Holdings will raise $15 million through a bought deal.
• Cannabis marketing agency Petalfast announced on Wednesday it had raised a $2.8 million Series A round led by Merida Capital Holdings.
• Tilray is closing a major cultivation facility, High Park Farms, in Ontario as part of the merger with Aphria.
• Cannabis-infused beverage company Cann is expanding... out of cannabis... with a line of non-infused beverages called Unspiked in flavors like Blood Orange Cardamom and Lemon Lavender.

Research and data

• Psychedelics company MindMed announced on Monday that it had received an FDA Type C Meeting Response from the FDA for its LSD clinical trials. The company said it expects to formally submit its investigational new drug application (IND) for Project Lucy by Q3 of this year and launch phase II trials in Q4 2021.
• A new study from Intermountain Healthcare found that vaping injuries, or EVALI, can lead to long-term lung damage, cognitive impairment, and depression.

Policy moves

• A bipartisan group of senators, including Rand Paul of Kentucky and Ron Wyden of Oregon, introduced a bill on Wednesday that would allow CBD to be used in food products and supplements, and kick it to the FDA to come up with regulations for the industry.
• Rep. Jerrold Nadler is planning to refile the MORE Act, a bill that would federally de-schedule cannabis, as soon as next week. The bill will contain some key changes from the last version, Marijuana Moment reports.
• Alabama is the latest state to legalize medical cannabis. On Monday, Governor Kay Ivey signed Senate Bill 46 into law, allowing patients to purchase tablets, capsules, and other non-smokable forms of medical cannabis in stores once sales begin in around a year's time.
• Meanwhile in Mississippi, the state's Supreme Court overturned Mississippi's medical cannabis law last Friday in a 6-3 ruling.
• The DEA will approve new growers of research-grade marijuana, The Wall Street Journal reports. Previously researchers only had access to marijuana grown on a small plot at the University of Mississippi.

Earnings roundup

• Columbia Care released Q1 results on Monday, reporting $92.5 million in net revenue and a $15.4 million loss.
• Verano Holdings released Q1 results on Tuesday, reporting $143.3 million in net revenue and a $125.6 million profit
• Agrify released Q1 results on Tuesday, reporting $7 million in net revenue and a $3.8 million loss.
• MariMed released Q1 results on Tuesday, reporting $24.6 million in net revenue and a $4.3 million profit.
• Greenlane released Q1 results on Tuesday, reporting $34.0 million in net revenue and a $7.7 million loss.
• Ascend Wellness Holdings released Q1 results on Tuesday, reporting $66.1 million in net revenue and a $48.2 million loss.
• TerrAscend released Q1 results on Wednesday, reporting $56.5 million in net revenue and a $12.7 million loss.

Chart of the week

Cannabis jobs boomed in 2020, according to Leafly and CannaBiz. Last year, the industry created 24,000 new jobs in California, while Florida trailed closely behind with 15,000 new positions:

What we're reading

Psychedelic Drugs Will Follow Pot's Path to Legalization (Bloomberg Opinion)

Cannabis Goes Corporate: Lobbyists, Unions Seek to Shape Marijuana Industry (The Wall Street Journal)

Should home growers have their cannabis tested? Activists look to raise awareness about safe consumption (MassLive)

The cofounder of one of California's largest cannabis-infused beverage manufacturers on dealing with strict regulations and staying competitive in a growing market (Insider)