Delivery app Eaze’s survival was in question before it acquired Colorado-based retailer Green Dragon, executives told staff in a Zoom meeting this month, a recording of which was shared with WeedWeek.
WeedWeek

The sometimes contentious meeting between the company’s leadership and engineering team offers a rare look inside a major cannabis company navigating consolidation, slowing growth in some states and the many challenges inherent in the federally illegal industry.

As with any merger, the combined company has had to align the companies’ cultures and operations. Green Dragon, which started about a decade ago, had been a profitable family business. Eaze, by contrast, looked more like a tech start-up and was “burning an obscene amount of money,” CFO Trey Handley, formerly of Green Dragon, said.

Employees at Eaze, which handles about one third of legal deliveries in California, took pride in the company’s social equity component and being, what one current employee called…

Read the WeedWeek exclusive

Timber! Treez lands $51M

Under the radar tech outfit Treez raised $51M at a valuation of $260M to expand to new states. The company, which focuses on Metrc markets, offers point of sale software and a suite of other offerings including inventory management, analytics and a plug into a payments system.

Chief Revenue Officer Josh Glantz said the company’s “open ecosystem” software which connects to more than 100 integrations is a competitive advantage compared to some platforms which have a “walled garden” approach. 

MedMen names new boss

SoCal-based MSO MedMen named seasoned retail executive Edward Record as its new CEO. Chairman and outgoing interim CEO Michael Serruya said Record has the “discipline and restructuring expertise” the company needs. MedMen is currently embroiled in litigation against MSO Ascend Wellness Holdings over a New York REC license. 

• MedMen also announced the departure of COO Roz Lipsey.
• Long suffering MedMen stockholders can vote on its stock and incentive plan.

Desert grow partners with Tommy Hilfiger

California wholesale prices have plunged, but that hasn’t dissuaded new competitors from entering the fray. This month Green Horizons announced plans for a greenhouse and business complex of up to 1M square feet in Coachella. Tommy Hilfiger’s investment vehicle is the founding investor.

Green Horizons co-founder and CEO Carlos “Los” Arias said the company’s forthcoming flagship brand would be at the nexus of cannabis, fashion and sports. Look for it in late summer.

Legislation:

• Bills to crack down on illegal grows passed key legislative committees.
  Hey SoCal
• A bill to allow cannabis growers to sell at farmer’s markets also advanced.
  Sacramento Bee
• A new assembly bill would prohibit employment discrimination against cannabis users. 
  Ogletree Deakins (law firm)
• A bill to increase MED access passed a Senate committee.
  Cannabis Business Times

Regulation:

• The state’s drought plan could exclude cannabis growers from its drought “fallowing” program which involves paying farmers not to grow. 
  MJBiz

Local:

• Happy Day Farms grower Casey O’Neill wrote a piece about “community at the cannabis market.“
  The Mendocino Voice
• The owner of Oakland dispensary Oakanna was shot in the foot while responding to a robbery.
  KPIX
• SF’s Cannabis Oversight Committee met yesterday.

Fun and interesting:

• The California State Fair is now accepting applications for its cannabis competition.
• New York magazine reports on how wine makers fight back against smoke from wild fires.

Our new chart of the week features exclusive data from cannatech unicorn Dutchie, on category sales in California this year:

Plus: Data shop Headset shared this tidbit:

• California saw higher than average sales growth on 4/20 this year compared to other U.S. markets. The median California dispensary experienced 161% sales growth and a 62% increase in average discounts on 4/20 in comparison to the previous four Wednesdays.

Milestones:

• Contra Costa Co.-based Velvet Cannabis opened a dispensary in LA’s Eagle Rock neighborhood. 
• LA-based Radicle Sciences, which is developing a platform to accelerate cannabinoid research, won a Cool Companies 2022 award.
• Guadalupe-based (Santa Barbara Co.) approved Element 7 as its second pot shop. 
  Santa Maria Times

Products:

• Music artist SAINt JHN partnered with Kiva’s Lost Farm edibles brand on a limited edition edibles collection.

Job moves:

• Brothers Steve and Andrew DeAngelo joined the advisory board of Harvest Direct, a biotech company “pioneering lossless cannabis processing.”

Upcoming:

• The CannMed conference is next week in Pasadena.
• The city of San Diego is hosting a series of listening sessions next month as it develops its equity program.
• LA DCR official Jason Killeen is hosting a virtual Q&A lunch on Tuesday.
• Oakland equity non-profit Supernova Women is hosting a spring social in Berkeley tomorrow night. 

Comedian Mike Glazer and Hazy partner Kolin Morgenstern strike a pose at the LA launch party for P&B Kitchen, the new edibles line from Papa & Barkley. 

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