AP Photo/Steven Senne, File
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.
Sign up here to get it in your inbox every week.
The month of May has come and gone, and the cannabis world is still waiting on Sen. Chuck Schumer's promised comprehensive legalization bill.
His House counterparts aren't waiting – Rep. Jerrold Nadler introduced an updated version of the MORE Act, a narrower decriminalization bill, today.
What else?
US cannabis companies aren't waiting for the federal government to iron out cannabis rules. Instead, even though they're listed in Canada, they're moving to the US system of accounting, called GAAP. That will help companies, like Green Thumb Industries, Trulieve, and Ayr Wellness, prepare to move their listings to major US exchanges as soon as possible in order to bring in more investors.
"When that wall of money comes, you have to be ready," Jon Sandelman, the CEO of Ayr Wellness told Yeji and me in an interview last week. "I want to act like the walls are already down so we're the most investible company in the industry."
- 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 top 7 law firms advising on marijuana megadeals worth billions
Insider looked at the 10 biggest deals in the cannabis industry over the past year and identified the top law firms that worked on those deals.
Executive Moves
- The Parent Company announced on Thursday that Mary Pryor and six others had been selected to sit on its Social Equity Fund Advisory Committee, which will oversee a $10 million fund. Read the full list here.
Deals, launches, and IPOs
- Canadian cannabis company Hexo announced on Friday that it has agreed to acquire private Canadian cannabis producer Redecan in a C$925 million cash and stock deal.
- Silver Spike III Acquisition Corp announced that it closed its $125 million IPO. The SPAC will focus on US cannabis companies.
- Hydroponics company Hydrofarm Holdings announced an agreement to acquire House & Garden, a Humboldt County horticultural center, for $125 million.
- Edibles maker Herve closed a $3 million Series A funding round, led by SOL Global Investments.
- Cannabis accessories maker High Tide Holdings is expected to begin trading on the Nasdaq on June 2.
- New York public affairs firm Davidoff Hutcher & Citron is launching a cannabis practice group, chaired by Steve Malito.
- Psychedelics company MagicMed is going public on the Nasdaq through a reverse merger with Enveric Biosciences.
Research and data
- THC, the chief psychoactive component in marijuana. doesn't help ease the pain and anxiety of getting boiled alive - at least if you're a lobster, according to a pre-print study from researchers at the University of California, San Diego.
- An analysis from the nonprofit Marijuana Policy Project found that states have generated nearly $8 billion from legal cannabis, reports Marijuana Moment.
- Marijuana use among high school kids has remained stable since 2009 despite a rush of states legalizing cannabis, according to a report from the National Center for Education Statistics.
- Workforce positivity rates for marijuana and other drugs increased to historically high levels this year, according to Quest Diagnostics, a drug testing company.
Policy moves
- Rep. Jerrold Nadler reintroduced the MORE Act, a bill that would federally decriminalize cannabis and expunge records, today. The bill passed the House in December but did not pass the Senate.
- Workers at Union Harvest and Nature's Root, two cannabis and hemp companies, are joining the United Food and Commercial Workers (UFCW).
Earnings roundup
- TILT Holdings released its fiscal Q1 results on Tuesday, reporting $46.8 million in net revenue and a $1.6 million net loss.
- Ayr Wellness released its fiscal Q1 results on Wednesday, reporting $58.4 million in net revenue and a $16.6 million net loss.
- Cresco Labs released its fiscal Q1 results on Thursday, reporting $178.4 million in net revenue and a $24.1 million net loss
What we're reading
Big Candy is Angry (The New York Times)
Price per milligram of THC declining in cannabis-infused products (Marijuana Business Daily)
Grassroots or Astroturf? Congressional candidate says he was tricked into running by RNC strategist (Fox News)
Yes, Pot Is Legal. But It's Also in Short Supply. (The New York Times)
Cannabis Prohibition's Last Stand (Forbes)
Asian pot growers face sheriff raids, bulldozers in Northern California. They blame racism. (The Sacramento Bee)