Federal Cannabis Initiatives Make Massive Strides During Market Volatility
The highs are high and the lows are low. Let the survival of the fittest era commence.
Your monthly recap of the latest early stage funding, M&A, and exits in the cannabis market in North America.
J1 portfolio co Komplyd announced the close of their seed round. Komplyd is a women-led tech platform that allows cannabis companies to establish and maintain compliance across multiple jurisdictions with a single API integration.
AI risk scoring platform Kompliant has raised $14M from Casa Verde Capital.
Happy Cabbage Analytics has closed an oversubscribed financing round that will allow it to launch new predictive analytics tools for cannabis retailers nationwide.
DEA pharmaceutical cannabis license holder Biopharmaceutical Research Company has raised a $20M Series A led by Intrinsic Capital Partners to massively upscale their research & cultivation capabilities.
Hip-hop artist & entrepreneur Sean “Diddy” Combs is set to acquire assets divested in the merger of Cresco Labs and Colombia Care for up to $185M.
Safe Harbor Financial has reached an agreement to acquire cannabis digital banking solutions provider Abaca for $30M. Safe Harbor will now operate in over 30 states.
Enterprise commerce solutions provider Treez has acquired Swifter, a bespoke digital payments platform for the cannabis industry.
Tilray Brands (NASDAQ:TLRY) acquires Montauk Brewing Company, the #1 craft brewer in Metro New York.
High Tide has acquired 8 stores from Choom dispensaries for CAD $4.2M with plans to acquire the 9th pending regulatory clearance.
California vertically integrated cannabis operator Glass House Brands spent an undisclosed amount to fully acquire The Pottery Dispensary, of which it previously owned 50%.
Cannabis legacy media company turned operator High Times has completed an all stock deal to purchase Moxie’s production & manufacturing infrastructure in California.
Must Reads
The most important news worth reading and events worth going to.
President Biden’s Surprising Pro Cannabis Initiatives
Have a read of President Biden’s verbatim statement on cannabis reform. It includes pardoning federal cannabis offenses and reevaluating cannabis’s federal status as a Schedule I drug. We wholeheartedly agree with Biden that, “Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.”
Congress Sends First Weed Bill to Biden
The Senate passed a bill designed to expand medical marijuana research by unanimous consent. It’s the first standalone marijuana-related bill approved by both chambers of Congress!
2022 Cannabis Ballot Wins & Losses
Cannabis adult-use markets grow to 21 states! Medical markets stay stagnant at 38 states + DC. Maryland and Missouri voted to legalize adult-use cannabis and are collectively projected to bring in up to $1.5Bn of revenue in the first year of sales.
New York Issues First Adult-Use Retailer Licenses
The licenses approved by the state’s cannabis control board were the first of 175 the state plans to issue, with many in the first round reserved for applicants with past convictions for marijuana offenses. Eight non-profit groups were among the 36 licensees granted.
Florida’s Adult-Use Legalization Effort
Multi-state operator Trulieve has donated $5M to fund an adult-use legalization campaign with hopes for a 2024 ballot measure. The measure would also end FL’s vertical integration requirement, making it easier for small businesses to enter the market.
Debt Financing Continues to Eclipse Equity
Cannabis businesses are choosing debt more frequently than equity to fund their business operations and expansion. Debt now makes up 93% of capital raised by
The High-Level Recap on MJBizCon 2022
The world’s biggest cannabis conference in Las Vegas has thankfully come to an end so that all of us can finally get some rest! J1’s TLDR: the capital crunch in cannabis is real. Now is the best opportune time to be an investor in this market as the cream of the crop operators continue to rise and shine. THC potency remains a dominant driver for consumer purchases across all markets.
Fund Updates
The latest updates from our team and portfolio companies.
A Global List Of Cannabis Operators And Executives To Keep An Eye On
J1’s Helene Servillon has been named an executive to keep an eye on by Benzinga Cannabis alongside Nancy Whiteman, CEO of Wana Brands and Berner, Founder of Cookies.
Cellibre (biotech) has recently partnered with Telesis Bio to test & accelerate the development of new RNA development technologies. The two hope to create far faster methods of biologic production with less need for expensive reagents.
Komplyd (regtech) was selected as a TechCrunch Startup Battlefield company and presented at the Disrupt 2022 conference.
Plant People (consumer) has released new WonderSleep Mushroom Gummies for our insomniac readers who love functional fungi.
NABIS (tech) Co-founder and CEO Vince Ning will be at South by Southwest 2023. Check out their panel on “Can the Union of Equity and Tech Save Cannabis”.
🎙️ PODCASTS
J1 Team Spotlight: Alex Watson
Each month we spotlight talent from our team and community.
Alex Watson (they/them) is the 7th VC fellow that JourneyOne has historically brought on board and is a sophomore at Northeastern University with a combined major in International Affairs and International Business. Outside of the classroom, they are an Investment Analyst for the school’s impact investment fund and served as the Assistant VP of Finance for the NU International Relations Council.
Alex loves reading (currently Optimism Over Despair by Noam Chomsky), the outdoors, and is passionate about using business to solve existential societal problems, which is what drew them to JourneyOne Ventures - to support plant-based health initiatives and the movement to put more economic power in the hands of underrepresented demographics
Connect with Alex on LinkedIn and Twitter.
Founder Resources
Check out our free resources below and the full list on our website here.
Illinois Social Equity Funding
Gov. Pritzker’s office announced the creation of an $8.75M forgivable loan fund for approved social equity cannabis license applicants. The low-interest loans will range from $50K - $500K.
Lantern Launches the New York Cannabis Project
On-demand cannabis e-commerce marketplace and home delivery platform, Lantern launched a cannabis business incubator to help New Yorkers from the communities hardest hit by the War on Drugs start successful businesses in the industry.
The Good Green Grant Program by Green Thumb Industries
GTI’s program aims to fund founders from communities most impacted by the war on drugs and is focused on education, employment, and expungement.
Marijuana Moment Drug Policy Tracker
Track more than 1,500 cannabis, psychedelics and drug policy bills in state legislatures and Congress. Patreon supporters pledging at least $25/month get access to Marijuana Moments interactive maps, charts and hearing calendar.
For Kicks & Giggles
A section full of fun. That’s why we work in cannabis, right?
For the tech aficionados, GearPatrol has chosen their 3 favorite cannabis consumer hardware devices of 2022.
KIVA released 10MG THC weed-infused gravy packets across California to pair with your scrumptious Thanksgiving meal for the holidays.
Former NBA Hall of Fame-er Chris Webber launched Players Only, a luxury cannabis brand with products for everything from sport recovery products, to pre-rolls, and footwear.