A CPlant employee trims a hemp flower for export at the company's farm on the outskirts of Tala, Uruguay, Thursday, Aug. 13, 2020. AP Photo/Matilde Campodonico
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.
Clarence Thomas, one of the most conservative justices on the Supreme Court, wrote a statement that raised some eyebrows across the cannabis world this week.
After the court declined to hear a challenge to 280E – the Reagan-era IRS rule that forbids cannabis companies from deducting regular business expenses – Thomas said that the federal government's prohibition on marijuana "may no longer be necessary," given the number of states that have legalized it for both medical and recreational use. He called the federal government's enforcement of marijuana prohibition more "episodic than coherent."
It's fair to say Thomas is probably not going to become a legalization advocate – rather, he's a conservative judge pushing back against high tax burdens on small businesses and federal overreach in this specific case.
Another point: 21-year-old star runner Sha'Carri Richardsonwas suspended after testing positive for marijuana. She likely won't be able to run in the 100-meter dash at the upcoming Tokyo Olympics, where she was a medal favorite. In an interview with the Today Show, Savannah Guthriepointed out that Richardson was in Oregon when she tested positive - a state where marijuana has been legal for almost six years.
It's also worth noting that THC can show up in tests up to a month after consumption. Plus, there isn't any evidence that marijuana is performance-enhancing.
If you missed it: I went on the High Rise podcast with Cy Scott of Headset and Emily Paxhia of Poseidon Asset Management to discuss our reporting for the Insider newsroom-wide "Cost of Inequity" project - I'd encourage you all to read through some of the great reporting our colleagues did as well.
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Insider asked the largest cannabis companies in the world who makes up their C-suite. White men make up 70% of top execs, we found. Black execs make up 7% of the cannabis C-suite. This story is part of a larger newsroom-wide project: The Cost of Inequity.
CBD startup Kadenwood just closed a $50 million Series B, giving the two-year-old company a valuation of over $350 million. The round was led by The Craftory, a venture-capital fund that invests in growth-stage consumer startups, and Arcadian Capital Management, a venture fund focused on cannabis.
Viridian Capital Advisors analyst Jonathan DeCourcey says Ayr Wellness is his top cannabis stock pick and said the company's stock is discounted considering its track record.
Nabis, one of the largest distributors in California's cannabis industry, just closed a $23 million Series B round. We got an exclusive interview with the company's CEO Vince Ning who said he's focused on doubling the company's footprint in California.
A team member of Aurora Cannabis works in the grow room at Aurora Sky cannabis growing greenhouse in Alberta, Canada, in this 2018 handout image. Alberta Cannabis Inc/Handout via REUTERS
Executive moves
Cannabis distribution company HERBLannounced on Wednesday that COO Art Smuck is retiring. Former Whole Foods exec Robert Turner will take over.
Jushi Holdingssaid on Wednesday that former AB InBev exec Leonardo Garcia-Berg will join the company as COO, while Erich Mauff is stepping down from his roles as co-president and board member
California cannabis company Glass House started trading on the NEO Exchange on July 5. It went public through a combination with Mercer Park, a SPAC.
Cannabis company Clever Leaves said on Monday that it had launched "Project Change Lives," a research initiative that will pledge $25 million of medical cannabis to US researchers.
Trulieve said on Wednesday that it had completed its $13.5 million cash and stock acquisition of a cannabis store in Massachusetts.
Tilray is launching Broken Coast BC Lager in the US, through SweetWater Brewing Company. It's a way to get their Broken Coast cannabis brand in front of consumers in the US before they're able to sell actual cannabis.
And in other Tilray news, the company said in a proxy statement that it is seeking to increase the number of shares to pursue M&A opportunities.
The Petrie-Flom Center at Harvard Law School announced on Wednesday that it had launched a new research Initiative on psychedelics. The program, called POPLAR, is funded by the Saisei Foundation and long-time psychedelics proponent Tim Ferriss among others.
Chart of the week
Ontario's cannabis market has seen steady growth throughout 2020, thanks to the increase in dispensaries, according to market-research firm Brightfield Group. The province more than tripled its store numbers.
Ontario tripled its dispensary locations in one year Joanna Lin Su/ Insider
