Summer of Surprise: Cannabis Funding Barrels Ahead
Plus, US politicians rally for cannabis SAFE banking, states rights, and federal decriminalization.
Fresh Funding
Your monthly recap on the latest early stage funding, M&A, and exits in the cannabis market in North America.
Connecticut Innovations (the State of CT’s venture capital arm) has invested $1.25M in 1906, an edibles company that has relocated to Connecticut from Colorado.
Newly minted cannabis operator in New Mexico Dynamic Jack has closed $900K in funding and has launched an equity crowdfunding campaign to build out their facilities.
ERP seed-to-sale platform Canix closed a $10M Series A raise in June. They serve 2,300 licenses across 15+ states and 6 countries.
Seed-to-sale platform Alleaves states they are closing their $40M series A with hopes to acquire and integrate other tech companies to expand its customer base and platform capabilities.
Cannabis product and packaging merchant Greenlane Holdings announced earlier this month that it sold its stake in rolling paper company VIBES Holdings for $5.3M. Greenlane will retain distribution rights to VIBES products.
Canopy Growth buys the right to acquire Jetty Extracts for USD $69M. Jetty is a top 10 cannabis brand in California, and a top 5 brand in the Vape Category. Canopy will have the right to acquire, upon federal permissibility of THC in the US or earlier at Canopy Growth’s election, up to 100% of the outstanding capital stock of Jetty.
Cannabis CPG operator Tilray Brands closed its acquisition with Canadian cultivator Hexo Corp and hopes to increase operational efficiency and re-invest profits to prepare for an international market. Tilray acquired the HEXO Note from HTI, which has a current principal balance of $173.7 million outstanding. The purchase price paid to HTI for the HEXO Note was $155 million, reflecting a 10.8% discount on the outstanding principal balance.
Must Reads
The most important news worth reading and events worth going to.
The cannabis banking bill appears to have hit yet another wall, and odds are long that it will reach President Joe Biden’s desk this year. However, some lawmakers are fighting to get it passed. And House lawmakers, in particular, are demanding action from their Senate counterparts. The perception of progress on SAFE before year-end could drive an increase in funding, M&A, and an immediate upside for US cannabis stocks. We’re crossing our fingers!
Cannabis Administration and Opportunity Act
Senate Majority Leader Chuck Schumer’s Cannabis Administration and Opportunity Act would decriminalize weed on the federal level and allow states to set their own marijuana laws without fear of punishment from Washington. It’s odds of passing in this Senate are slim but the legislation will help shape the conversation around cannabis legalization going forward.
NFL Announces Cannabis Pain Management Study
$1M will be given to medical research teams at UC San Diego and the University of Regina to study the impact of CBD and other cannabinoids on recovery, pain management, and neuroprotection from concussion in elite football players.
Green Flower and Climb Credit Seek to Finance Cannabis Education
Applications will have no impact on a person's credit, allowing them to compare financing plans, and some loans are offered at 0% interest.
PBC Conference - Washington DC // Sept. 7-8
This conference is focused on cannabis industry payments, banking, and compliance and will feature several senators and governors as speakers. TBD on if our team will go but send us a ping if you plan to attend.
Benzinga Cannabis Capital Conference - Chicago // Sept. 13-14
Benzinga Miami drew in a big talented crowd of industry executives and investors across the US and beyond. Some of our contacts deemed it as, “one of the best shows of the year”. Enough said.
Fund Updates
The latest updates from our team and portfolio companies.
🎙️ PODCAST #1: Helene Servillon on Building a Cannabis Investment Thesis
🎤 PODCAST #2: Komplyd’s Co-founder Rose Elliot on Solving Complex Compliance Problems
NABIS, the leading tech-enabled distributor with a fast-growing wholesale platform and recently announced an exclusive partnership with The Parent Company, a California vertical operator and house of brands to expand sales, streamline operations, and lower supply chain costs.
Plant People is now in Whole Foods stores on the west coast with aims to expand nationwide!
J1 Team Spotlight: AnnaRae Grabstein
Each month we spotlight talent from our team and community.
AnnaRae Grabstein has recently joined our team as an operations advisor and is an executive and advisor with a legacy of leadership in the cannabis industry. Her career leading experience has spanned such roles as CEO, COO, founder, advisor and industry advocate at companies like Steep Hill, NorCal Cannabis, Chemistry, Dewey Scientific and Marin Sun Farms. Her extensive accomplishments in cannabis have made her a key player in the legal cannabis industry where she has led, operated and guided innovative and market leading companies; building and scaling businesses to fulfill market needs that previously did not exist during prohibition and in a highly regulated and complex environment. Check out our Q&A with AnnaRae here.
Connect with AnnaRae on LinkedIn and Twitter.
Founder Resources
Check out our free resources below and the full list on our website here.
Focused on solving problems in the cannabis industry supply chain with an eye for shifting regulation. They invest up to $52,500 in cash and $22,500 in services into your business in exchange for 10% of equity. Applications are accepted on a rolling basis.
StartupStash has information on hundreds of CRMs for business essentials like accounting, project management, brand management, and more. It allows you to compare tools based on price and features, and has lists of alternatives for most tools.
For Kicks & Giggles
A section full of fun. That’s why we work in cannabis, right?
Remember Jones Soda? They’re now in the cannabis game. Check out their cannabis-infused Mary Jones Soda in California.
Our friends at the Revelry are throwing a Summit and Block Party on Sunday, August 28th in New York with Weedmaps.
Cannabis enters the Metaverse as many brands find the decentralized space to be an easier place to market. Check out some virtual dispensaries and fun cannabis-leaf avatars.