As the legal cannabis market grows in the US, there are many ways for investors to gain exposure to the industry. Bloomberg Creative/Getty Images
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.
In short, and I said this on NBC LX on Thursday, the bill goes after the 'whole enchilada' (yes, terrible metaphor) for marijuana legalization: It would fully remove cannabis from the list of federally controlled substances, expunge some criminal records, tax and regulate the industry, create funds that help minority entrepreneurs, and eventually allow for interstate commerce.
This is the first time the senate majority leader has outlined cannabis reform as a top priority, and he's joined by Wyden, chair of the Senate Finance Committee - arguably the most powerful committee - as well as a former presidential candidate in Booker.
Though the bill will likely change significantly over the next few months, the chances it gets over the 60-vote filibuster threshold are almost nonexistent. It's even unlikely they'll get all 50 Democratic Senators onboard, as we've reported.
There's a broader fight brewing within the industry as well as the popular activist movements that view legalization as the tip of the spear of broader police reform.
The industry's investors and executives want access to banking. Senate Democrats and their progressive base want criminal justice reform first.
Booker drew a bright red line in a Wednesday press conference, indicating that we would stop bills like SAFE Banking, which would allow cannabis companies to access the financial system without broader legalization, from advancing ahead of criminal justice reform.
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The discussion draft for the Cannabis Administration and Opportunity Act (CAOA) was released on Wednesday. The bill isn't expected to garner enough votes to pass the Senate - and the White House has not signaled support for the legislation - but Insider looked through the 30-page document to highlight eight key points in the draft.
In a Thursday note, Cantor Fitzgerald analyst Pablo Zuanic said that while de-scheduling - a key aspect of the CAOA - would be a big win for the industry, a hefty federal tax would pose a "new burden" to consumers who already have to pay high state and local taxes. Zuanic broke down the draft into 7 points and noted how each one would affect current cannabis companies.
Analysts say that the recent pullback in US cannabis stocks the day Democrats released their bill draft has created a prime buying opportunity and laid out his top four picks. "Make use of yesterday's weakness," the analysts said in a Thursday note, adding that investors should avoid financially stretched companies that lack "state-level depth."
The psychedelics space has burgeoned over the past year and VCs are largely responsible for all the capital that's flowing into the space. Insider put together a list of the top investors that have bet the most cash on psychedelics companies.
Executive moves
Curaleafannounced that Ranjan Kalia, former executive vice president and CFO of tech firm Virtusa Corp, would be joining the company as CFO.
MedMenannounced that Tom Lynch, who had been serving as interim CEO, would be stepping into the role on a permanent basis.
Cannabis retail company Zoned Properties named Berekk Blackwell as its new COO.
Psychedelics wellness retreat company Dimensions Health Centressaid that Dr. Douglas Cook, head of neurosurgery at Queen's University, will be joining the company as chief medical officer. Hospitality veteran Linda Griffin will be joining as managing director of hospitality.
Deals, launches, and IPOs
Michigan cannabis company C3 Industriesclosed a $25 million funding round led by Welcan Capital and Navy Capital, bringing the company's total capital raised to $65 million.
Psychedelics company Wesana Healthannounced that it acquired therapeutic software company PsyTech in a C$21 million all-stock deal.
The United States Anti-Doping Agency is seeking to ease restrictions around athletes testing positive for marijuana use in an upcoming meeting with World Anti-Doping Agency (WADA), Reuters reports.
New Jersey has dismissed 88,000 marijuana cases, under the state's new legal marijuana laws, NJ Advance Media reports.
Research and data
Living near a dispensary did not increase cannabis use among young adults. However, there was a slight increase in tobacco/cannabis co-use among white people, according to a new study published in the Journal of Cannabis Research.
Florida dominates the US medical cannabis market, selling $1.2 billion worth of products in 2020, according to New Frontier Data. Trailing closely behind are Arizona and California, at $1.1 billion and $857 million in sales respectively:
Top 10 medical cannabis market by revenue in 2020 New Frontier Data
