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Happy Friday and 4/20 week everyone,
It's weeks like this one where I have to sit back and take stock of how far we've come on attitudes toward cannabis, despite covering the industry every day. It's one of the most rapid shifts in public perception and policy that I can think of, outside of same-sex marriage.
I'm also 28 years old, so I'm willing to be wrong on this one. But hear out my argument:
Senate Majority Leader Chuck Schumer used 4/20 to push for comprehensive federal cannabis reform, calling it an 'unofficial American holiday' on the Senate floor. Last year, he used 4/20 to introduce a bill to decriminalize marijuana.
4/20, so the story goes, was started by a group of Grateful Dead-loving high schoolers in Northern California, as I've written. They probably didn't expect their inside joke to end up in the Senate Chamber as a cudgel for pushing legalization.
New polling from Pew shows that only 8% of Americans think cannabis should remain illegal for all uses. Research from a top-tier marketing firm shows that 55 million Americans consume cannabis.
Congressional Democrats are, in some capacity, banking on the passage of cannabis reform - or at least, preparing to run on that promise to keep their majorities in the midterm elections. Jen Psaki, the White House press secretary, was asked about President Joe Biden's position on the issue. It wasn't too encouraging, as she said his position is far from his party's dominant position in Congress.
But, she did leave the door ajar: She said that Congress hasn't delivered the bill yet, so it remains to be seen what he'll sign.
On that front, the House again passed the SAFE Banking Act for the second time in as many years. Analysts, however, expect that the bill won't see a Senate vote. They expect that portions of the bill will be tied into more comprehensive reform proposed by Schumer, as I wrote this week.
What else?
New York legalized cannabis. We picked the 27 power players, from lawmakers to regulators, to executives, that will shape the future of the industry.
And law firms, recruiters, marketers, and tech startups are preparing for a gold rush as New York opens up its legal cannabis market.
Yeji, who's dominated the emerging psychedelics beat, poured over Atai's over 370-page S-1 filing to pick out some of the key details you need to know.
As a reminder, here's how to get in touch with us: jberke@businessinsider.com or ylee@businessinsider.com. Signal number for encrypted messages upon request.
- Jeremy Berke (@jfberke)
Here's what we wrote about this week:
Law firms, recruiters, and marketers dish on how they're gearing up for a gold rush from New York's blockbuster move to legalize cannabis
New York's legal cannabis market has the potential to balloon into a multibillion-dollar industry, and it's creating a gold rush for law firms, public relations companies, recruiters, and compliance startups that service the industry.
The House just passed a cannabis bill that could open up bank access and supercharge the industry
The House passed the SAFE Banking Act, on Monday. If signed into law, the bill would let cannabis companies access banking services and allow customers to use credit or debit cards to buy their products. Insider read through the bill and chose the top takeaways from the legislation.
Byzantine laws make cannabis delivery a major headache. 3 industry insiders explain how they'll navigate them to cash in on the 4/20 sales boom.
Some cannabis businesses expect a 250% spike in orders on April 20, a cannabis holiday. Legal restrictions on how deliveries are managed make handling that spike a challenge.
A bad delivery experience can send shoppers back to the illegal market.
A top Wall Street analyst lays out how a US marijuana decriminalization 'compromise scenario' could spark an M&A boom
Cantor Fitzgerald analyst Pablo Zuanic said in a Tuesday note that he expects key parts of the SAFE Act to end up in a more comprehensive cannabis reform bill being crafted by Senate Majority Leader Chuck Schumer, rather than be introduced as a standalone piece of legislation.
If that bill passes, it would catalyze a wave of M&A in the US, driven by well-capitalized Canadian companies, Zuanic said.
Psychedelics giant Atai is going public. We pored over its 373-page filing to find 5 key takeaways.
Atai Life Sciences, the psychedelics giant backed by big-name investors like Peter Thiel, is going public. The company said in an S-1 filing submitted this week that it plans to trade on the Nasdaq under the symbol "ATAI." We pored over the psychedelic giant's 373-page filing to find the key takeaways.
The future of New York's $7 billion cannabis industry will be shaped by these 27 power players
We put together a list of the top 27 power players to watch in New York's cannabis world as regulations roll out and sales begin. We reached out to regulators, associations, executives, and advocates to give readers a look at who to watch in the coming months and years.
Executive Moves
- Cresco Labs announced on Thursday that Tarik Brooks would be joining its board of directors to replace Dominic Serg, a founder of the company, who is retiring from the role.
- Former Dutchie cofounder Sam Ellis is joining the board of cannabis firm Digital Venture Partners.
Deals, launches, and IPOs
- Jushi Holdings announced on Monday that it will acquire Nature's Remedy of Massachusetts for $110 million. On Tuesday, the company said it would also acquire Ohio-based OhiGrow in a $5 million cash deal.
- TerrAscend announced that it would acquire Pennsylvania-based GuadCo and KCR Holdings in a $70 million stock, note, and cash deal.
- Psychedelics company MindMed said on Friday that it will begin trading on Nasdaq on Tuesday. The company previously announced in September that it had applied to up-list from the NEO Exchange.
- Atai Life Sciences, the largest private psychedelics company by capital raised, filed to go public on the Nasdaq. Here are the top takeaways from the company's 373-page S-1 filing.
- Cannabis tech startup Wurk closed a $3.5 million financing round, with investors including Poseidon Asset Management, Salveo Capital, and the Arcview Group.
- Cannabis company Parallel is pouring $25 million into a new facility in Texas.
Policy moves
- On Monday, the House passed the SAFE Banking Act, a bill that would let cannabis companies access the banking system, for the second time in as many years. Here's our story on everything you need to know about the bill.
- The NFL said it won't test players for marijuana use during the offseason between April 20 and August 9.
Research and data
- A new poll from Pew shows how far public sentiment on marijuana legalization has changed among Americans: Just 8% say marijuana should remain illegal.
- A study from polling firm YouGov and cannabis company Cresco Labs found that one-quarter of Americans consumed cannabis during the last year - an uptick from 16% in 2018. The pandemic may have had something to do with this.
- Marketing firm MRI Simmons has started to publish some results from its National Cannabis Study, showing that 55 million adults in the US use cannabis - with 17% of the total population consuming more than once a month.
Cannabis jobs
- CBD Oracle, a cannabis reviews site, is looking for weed connoisseurs to take on a part time role to test marijuana products at home. It pays $30,000.
- The Valens Company is hiring for laboratory roles, including laboratory supervisor, among other openings.
Chart of the week
Tens of millions of tourists who visit New Jersey and New York are expected to buy cannabis products, according to New Frontier Data. The cannabis data company projects that within a few years, New Jersey could see 22.3 million tourists buying marijuana, while New York is expected to have 22.9 million visitors purchase:
What we're reading
After 'Green Rush,' Canada's Legal Pot Suppliers Are Stumbling (New York Times)
Here's how 4/20 became the go-to holiday for marijuana lovers (Insider)
Welcome To The Last Illegal 420 (Forbes)
Here's how legal weed will play out in America (Yahoo Finance)
Border weed: How the hometown of tater tots became a cannabis capital (Politico)
Potency limits are the next frontier in marijuana debate (Axios)
How Federal Prohibition Is Turning Cannabis Into a Climate Villain (Rolling Stone)
CBD products are helping athletes avoid prescription painkiller dependence (Insider)