Introducing Cultivated, our new 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.
This week was dominated by a slew of cannabis earnings. Two of the biggest kahunas, Tilray and Canopy Growth, reported larger losses than expected causing their share prices to tumble and weighing on the sector as a whole.
My colleagues at Markets Insider have more on Tilray, which beat expectations for revenue but showed a much larger than expected loss. Canopy Growth, for its part,took a whopping $1.28 billion loss for the quarter, its first without former CEO Bruce Linton at the helm.
Beyond earnings, we got fresh details on cannabis-delivery startup Eaze's hunt for more VC money, and spoke to the CEO who got Credit Suisse on board with cannabis.
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I'm also excited to announce that in several weeks BI will be hosting its first ever cannabis webinar with marijuana analytics company Headset.
Earlier this year, Headset raised $12 million and inked deals with market research firm Nielsen and accounting firm Deloitte.
You can join Headset CEO Cy Scott in an exclusive BI Prime webinar on September 5th at 2 PM ESTas he takes readers through his pitch deck and explains how he convinced VCs, including early Juul investor Poseidon Asset Management, to buy in.
Poseidon partner Emily Paxhia will also weigh in about the unique challenges of investing in cannabis and how she picks winners in a crowded market. I'll be moderating the conversation. You can sign up here.
I'll be off next week, so the next edition of Cultivated will hit your inbox on August 30. I'll be canoeing down a section of the Yukon River in Northern Canada for a week with a couple buddies, so please wish me luck!
-Jeremy
More stories from around the BI newsroom:
Buzzy cannabis-delivery startup Eaze is looking to raise a new round that could value it at $400 million
We got the details on Eaze's new fundraising round.
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The buzzy cannabis delivery startup is making the rounds to mainstream VCs and cannabis-specific funds, looking to raise $50 to $75 million. The new round comes just months after the startup raised $65 million.
Cannabis could become a $60 billion industry in the US. That's more than double the market for vitamins and supplements.
Legal cannabis in the US could become a $60 billion market if federal prohibition is repealed, according to a new report from the Toronto-based investment firm Echelon Wealth Partners.
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That's more than double the total market for vitamins and supplements in the US.
A group of Wall Street veterans just raised $250 million to chase down deals in the red-hot cannabis sector. Its CEO explains how it got Credit Suisse on board.
Silver Spike Capital last week raised $250 million for acannabis-focused investment firm through a special purpose acquisition company or SPAC. Credit Suisse acted as the sole book-runner on the SPAC, becoming the first bulge bracket investment bank to lead a US cannabis offering.
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The firm is expected to raise additional capital over the next year for a direct lending arm, a private equity fund, and a hedge fund for public markets opportunities, CEO Scott Gordon told me in an interview.
Capital raises, M&A activity, partnerships, and launches
Canopy Rivers, the VC arm of Canadian marijuana giant Canopy Growth, has received conditional approval to list on the TSX Venture exchange. I interviewed Canopy Rivers' President, Narbe Alexandrian, in February about his market outlook.
Cannex and 4Front officially closed their merger, creating 4Front Ventures. See my interview with Josh Rosen, 4Front's CEO, from back in December when the merger was first announced.
Auxly Cannabis Group Inc. President Hugo Alves will succeed Chuck Rifici as CEO, effective August 27. Rifici co-founded Tweed Marijuana Inc, the company that became Canopy Growth, with Bruce Linton.
Former MedMen COO Ben Cook has joined Calyx Peak Capital as its COO. I interviewed Calyx Peak's CEO Ed Schmults in December.
Stevens J. Sainte-Rose, a veteran of Coca Cola and Walgreens, will join Surterra Wellness as chief human resources officer.
Chart of the week
This one comes from Echelon Wealth Partners analyst Matthew Pallotta. Using data from market research firm Euromonitor, Pallotta estimates the potential size of the US cannabis market as an approximately $60 billion consumer category, when (or if) federal prohibition is repealed.
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That could be a conservative estimate, as Pallotta notes, because more consumers may come into the fold as THC and CBD-containing products enter the mainstream.
"We note that one of the most unique and attractive aspects of the burgeoning cannabis category, relative to other high-growth consumer segments, is that significant demand for the products already exists," Pallotta wrote in his report.
Shayanne Gal/Business Insider Stories from around the web
Eaze connects users and licensed dispensaries for on-demand ordering and delivery services. Dispensary drivers begin the delivery process as soon as an order is placed, so we currently do not feature the ability to place advance orders.
Eaze was launched in 2014 by Keith McCarty to deliver medical marijuana to patients in California. McCarty started the company in his San Francisco apartment with four employees.
It's possible they're working on another delivery, stopped for gas, or stuck in traffic, but they're doing their best to get there. You'll sometimes get a different ETA based on the order you've placed. When there are sales or promos going on, selecting new products can sometimes speed up your ETA.
Mail Order 420 is one of the leading California based online cannabis dispensaries. The company offers premium Californian grown cannabis products such as flowers, edibles, concentrates, vapes and more.
Ordering from Eaze couldn't be easier. All you need is an accepted government I.D. and a valid delivery address. Then, you can order a variety of cannabis types (CBD, Sativa, Indica) and products (gummies, vapes, and pre-rolled joints). Be sure to remember that the order minimum is $50.
Eaze's 2022 State of Cannabis report aggregates our proprietary data to illustrate the behavior of the more than 380,000 customers who purchased from Eaze between January 1 and December 31, 2021.
How to check if Eaze delivers in your area. Eaze only partners with independently licensed dispensaries that deliver to select cities throughout the states of California and Michigan.
Columbia Care owns over ninety dispensaries across eighteen states and jurisdictions, with twenty in Colorado. It owns the Green Solution, now a network of sixteen stores after the closures, as well as Medicine Man, another Colorado-founded dispensary chain with four stores in Colorado.
Susan Hwang is the founder and CEO of BEST Dispensary, a luxe dispensary in Arizona offering an elevated and memorable shopping experience and highest quality cannabis products.
The roots of the crisis date to August 2022, when a shell company co-owned by Clark issued a $36.9 million loan to Eaze that gave him the right to take control of the cannabis delivery company if it didn't meet monthly revenue targets, according to a 2023 lawsuit filed by other Eaze investors.
You will need to choose your method of payment before you can place your order. Upon selecting your payment method, you will see all available options including ACH* and Cash (*depending on your delivery zone).
Transporting cannabis across state lines is strictly illegal under federal law, regardless of any state's legalization status. The Controlled Substances Act classifies cannabis as a Schedule I drug, alongside substances like heroin and LSD.
By checking customer reviews and verifying the store's license, consumers can ease their skepticism. Being aware of this can also help protect buyers from receiving a counterfeit product– or worse, having their money taken without receiving their products at all.
Is Weedsy Legal? Absolutely! You can find your favorite Teensy, Weensy, Weedsy products at dispensaries and delivery services across Arizona, California, Oklahoma, and a handful of other states via tribal land.
Eaze, a leading cannabis software platform and marketplace, connects adult consumers with licensed dispensaries and products. We are on a mission to enhance safe access to legal cannabis, educate people about cannabis as a tool for wellness, and drive smart cannabis policies.
Though any estimate of his net worth depends largely on how much you think Cookies is worth. He claimed in a 2019 podcast interview to have rejected an $800 million offer for the company; a 2022 report from the journalist Zack O'Malley Greenburg placed his worth at $410 million.
Hobby: Gunsmithing, Embroidery, Parkour, Kitesurfing, Rock climbing, Sand art, Beekeeping
Introduction: My name is Roderick King, I am a cute, splendid, excited, perfect, gentle, funny, vivacious person who loves writing and wants to share my knowledge and understanding with you.
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