WeedWeek edition / January 20, 2020
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1 EAZE SCRAMBLES FOR CASH

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COURTESY EAZE

Delivery app Eaze, which has raised $166M, is scrambling for cashTechCrunch reports.

The so-called "Uber of Pot," recently closed a $15M bridge round "to keep the lights on... amid problems with making decent margins on its current business model, lawsuits, payment processing issues and internal disorganization." The story is based on interviews with nine sources familiar with Eaze's situation.

  • Eaze is raising a new round of funding to support the company's "verticalization" pivot to become a plant touching business. It currently operates as a platform to connect delivery customers and third party vendors.
  • The company operates in Oregon and California.
  • In a pitch deck obtained by TechCrunch, the company describes itself as the largest direct to consumer cannabis retailer in California.
  • TechCrunch: "Eaze is suffering from a problem rampant in the marijuana industry: a lack of working capital. Because banks often won’t issue working capital loans to weed-related business, deliverers like Eaze can experience delays in paying back vendors. Another source says late payments have pushed some brands to stop selling through Eaze."

In other corporate news...

A veteran Mendocino county grower reflects on who's still standing.
Cannabis Now

PRE-ORDER "THE CANNABIS DICTIONARY!

2 IS THE RECOVERY HERE?

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PHOTO BY SEBASTIEN GABRIEL ON UNSPLASH

Though some companies are clearly still struggling, there are also signs of a nascent recovery.

Business Insider put together a list of 14 top cannabis venture capital firms.

Quick Hits

  1. Grupo Flor Chairman Gavin Kogan writes that it's time to recognize cannabis as a valid business career.
    Green Entrepreneur
  2. Marketing tech company Fyllo acquired legal subscription service CannaRegs for $10M in cash and stock.
    TechCrunch
This week on the podcast
Weed & the Body at War, with Alice Moon

3 BABY STEPS IN D.C.

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PHOTO BY JOAKIM HONKASALO ON UNSPLASH

The House Committee on Energy and Commerce held its first ever hearing on cannabis legalization.

  • The hearing revolved around MED and impediments to future research.
  • No one from the industry was invited to testify, but the National Cannabis Industry Association (NCIA) submitted a letter.

Elsewhere in D.C., the American Bankers Association called on Senate Banking Committee Chair Mike Crapo (R-Id.) to pass a cannabis banking bill.

Quick Hits

  1. Senator and presidential candidate Bernie Sanders (I-Vt.) tweeted his support for workers unionizing at a Cresco Labs facility in Illinois.
    Marijuana Moment
  2. In a first, The New York Times editorial board endorsed two candidates for president, Senators Elizabeth Warren (D-Mass.) and Amy Klobuchar (D-Minn.) Both support REC legalization. Elizabeth Warren has co-sponsored a bipartisan bill to protect REC statesKobuchar supports legalization but barely discusses it.
    Canna Law Blog
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4 FLORIDA WON’T VOTE ON REC IN 2020

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PHOTO BY KYAW TUN ON UNSPLASH
No REC for you

Make It Legal Florida, a well-financed campaign to get REC on the state ballot, said it would shift its focus to the 2022 ballot, due to a rule limiting its time to collect signatures.
Tampa Bay Times

  • The hundreds of thousands of signatures it has collected can be applied to the 2022 initiative.
  • Legalization activists have traditionally favored presidential election years for REC ballot initiatives because they generate larger and younger voter turnout.

In other state legalization news...

5 IS HEMP FINALLY SEXY?

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PHOTO BY JORDAN SPALDING ON UNSPLASH
Speaker McConnell enjoyed his visit to a hemp farm.

After officially being legalized in the 2018 farm bill, industrial hemp has suffered various, predictable growing pains. But a few recent developments suggest the industry may be about to gain traction.

6 CDC: MAYBE VAPING IS OK

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PHOTO BY CDC ON UNSPLASH

The Centers for Disease Control walked back an earlier recommendation for everyone to refrain from vaping. It now says pregnant women shouldn't vape.
WSJ

7 EQUITY ENTREPRENEUR MAKES NOISE, GETS RESULTS

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After waiting 610 days for her supposedly fast-tracked license to be approved, a Massachusetts entrepreneur interupted two meetings of the state's regulatory commission to vent her frustration. This week the commission said her proposed store, Alchemy League, would be recommended for a provisional license, a big step forward.
Boston Globe

  • Leah Cooke Daniels said she believes speaking out paid off.

8 NJ JUDGE APPROVES EMPLOYEE MED COSTS

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PHOTO BY ADD WEED ON UNSPLASH
Scale of justice

In a case which could have nationwide implications, a New Jersey judge ruled that a construction company must reimburse a former employee for his MED.
Philadelphia Inquirer

  • Vincent Hager was a 28-year old laborer in 2001 when a truck dropped a load of concrete on him.
  • Severely injured, Hager later used MED to successfully get off opiates.
  • The former employer was overruled in its appeal that paying for Hager's MED was illegal under the Controlled Substances Act.
  • It is the first time a reimbursement case has been tied to marijuana's federal illegality and the ruling was that state law prevailed.

9 YET ANOTHER MARIJUANA CONSPIRACY

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PHOTO BY KRISTINA FLOUR ON UNSPLASH

A new movie called The Marijuana Conspiracy looks at a bizarre 1972 experiment wherein a group of young Canadian women were locked in a ward for several months and given lots of weed to smoke. Here's a fascinating Toronto Star story about the experiment. Its results have never been disclosed.

Quick Hit

  1. Alcohol prohibition began a century ago. This essay in the New York Times argues prohibition supporters had more problems with the alcohol industry's greed than with alcohol itself.

10 “THE MAN” NOW SELLS ACID

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A Canadian company called Microdelics is selling what it says is the world's first kit for microdosing LSD. They start at C$50.
Double Blind

  • The kits come with "a little blue bottle containing 100 micrograms of 1P-LSD "a derivative and functional analogue of LSD."
  • " 1-propionyl lysergic acid diethylamide, or 1P-LSD, is structurally similar, but not identical, to the original molecule. While the exact mechanisms of its action are not yet understood, it’s possible that 1P-LSD is a “prodrug” of LSD—meaning that it could convert to LSD in the body."
  • "Because of its subtle molecular differences, 1P-LSD bypasses prohibition in places like Canada, occupying a kind of legal grey area where regular LSD may otherwise be illegal."

Quick Hit

  1. Seventy three year old actor Brian Cox, has been dumped as the patron of an elderly center in Scotland after he said getting high is "wonderful."
    The Mirror