Good morning.
President Trump on Thursday made the one-month delay for the hemp THC ban official. It now sets off a race among lawmakers and industry stakeholders to come up with regulations everyone can agree on, which is easier said than done. The clock’s ticking.
Some programming notes:
Today at Noon | This Week in Cannabis Live with our friends at High Spirits and Cannabis Musings on LinkedIn >> and YouTube >>
Monday | No newsletter on Monday in honor of Labor Day (also known as Labour Day, north of Lake Ontario…)
We’ll see you back on Tuesday. Enjoy the long weekend!
Let’s get to it.
-JB, JR
Today’s newsletter is 532 words or about a quick, pre-long weekend 4.5-minute read.
💭 Thought bubble
Cannabis taxes aren't a magical level for state legislators to pull when they need revenue. Look at Michigan. The state raised its cannabis tax to 24% — in Q2, that generated about $37.38 million, per state data.
The quarterly projection was $105 million. There’s clearly no silver bullet number that achieves the dual policy goals of eroding illicit cannabis markets while also maximizing tax revenue. But the cannabis industry also isn’t a dish towel that tax revenue can continually be wrung from.
Policymakers should find that balance that keeps prices palatable for regular consumers, while also delivering revenue back to the state. Michigan’s learning the hard way that 24% isn’t it.
-JB
⏩ Quick hits
Checking in on the Curaleaf/Aurora battle
Of course, more from the front lines in the Curaleaf bid for Aurora. Curaleaf’s International CEO Juan Pablo Martinez has a lengthy LinkedIn missive that garnered some attention yesterday. As did Aurora’s CEO BNN Bloomberg segment and this Wall Street Journal article. $CURLF ( ▼ 5.3% ) $ACB ( ▼ 3.47% )
Cannabis workers at NETA in Massachusetts ratify new union contract
Eighteen cultivation, harvest, and pest management workers at NETA's Franklin facility ratified a one-year deal with UFCW Local 1445, including wage increases, a $700 ratification bonus, and AI/automation protections. The contract followed 16 months of stalled talks and a public pressure campaign.
NY State Senator Cooney gets some cannabis love
Fresh off the announcement of their 1,000 member, the Empire State Green Standard Alliance honored State Senator Jeremy Cooney at the New York State Fair in Syracuse for his cannabis advocacy.
📹 In case you missed it
Jay and Jeremy sat down on Thursday with Obie Strickler and Josh Rosen of Grown Rogue, the Oregon-based cannabis company scaling operations across Oregon, Michigan, Illinois, Minnesota, New York, and New Jersey. $GRIN.CSE ( ▼ 1.61% )
🚀 Deals, launches, partnerships
Cresco Labs closed its acquisition of nine PharmaCann dispensaries in Pennsylvania for $50 million in cash and a seller note, making it the state's top medical cannabis retailer by store count. $CRLBF ( ▼ 5.46% )
🧳 People moves
Our partners at Sweed are hiring for a bunch of roles across engineering, product, and sales and marketing. If you want to get into cannabis, now’s your chance: Check out the open roles here.
Cannabis industry lender FundCanna is hiring a National Account Executive. More on LinkedIn >>
🗽 One fun thing
America’s “third largest political party” would like to remind you their stance on cannabis.
📰 What we’re reading