Houston, we have a deal!

FINALLY, A DEAL
Leaflink buys Dama’s banking unit

What happened: Houston, we have a deal! 

Cannabis marketplace LeafLink is set to buy Dama Financial’s banking platform.

LeafLink offers cannabis businesses inventory management, data services, and handles payments. The company says it hopes this deal will “lay the groundwork” for a full suite of financial solutions for cannabis businesses, which the company says is the biggest pain point for operators.

As for Dama, the assets not included in this transaction will rebrand to GrowFlow.

What they’re saying: “After witnessing firsthand the negative impact the federal prohibition has had on operators’ access to traditional banks, we are thrilled to add banking to LeafLink’s product suite. Very few companies and people have the expertise that Dama Financial offers to the cannabis banking space,” LeafLink CEO Artie Minson said in a press release. 

Why it matters: Dealmaking in the cannabis industry has slowed to a crawl, as the sector contends with heavy regulation, high taxes, competition from the illicit market, and the free falling price of wholesale pot. 

That’s on top of all the challenges associated with doing business in an industry that’s still not federally legal in the US, like the lack of access to market-rate small business loans, credit, and the regular nuts-and-bolts of the banking system. 

But LeafLink is a tech company that doesn’t contend with the same issues as “plant-touching” cannabis brands and dispensaries do, even though they do depend on those dispensaries as clients. 

The company, led by Minson, (who did a stint as a co-CEO of WeWork after founder Adam Neumann stepped aside) recently upsized their Series D funding round to $125 million, meaning they have a lot of money to play with for growth — and potentially other acquisitions. 

-JB

New Yorkers can now grow at home 🌿

New York’s Office of Cannabis Management released final rules allowing residents to grow up to three mature and three immature plants — for a total of six plants — at home. Residents are allowed up to five pounds of trimmed cannabis in their homes. Read the full rules.

HEMP VS. WEED
Hemp companies line up against legalization in Florida

Driving the news: Florida Gov. Ron DeSantis and the state’s Republican Party have made their opposition to Amendment 3 — the ballot measure that would legalize cannabis in the state — explicitly clear. 

The Amendment, supported by Florida cannabis company Trulieve and other big multistate operators like Curaleaf, needs to clear a 60% vote threshold to pass, which could make it an uphill battle, per recent polling.

For more on DeSantis’s political gambit on backing hemp to oppose cannabis, read our June 3 newsletter. 

What happened: DeSantis has courted a strange coalition of hemp companies and far-right religious conservatives to fight the ballot measure, though they’ve been out-raised by the pro-legalization side by millions so far. 

The pro side has raised over $60 million, with $55 million of that coming from Trulieve, per reporting from MJ Biz Daily. The anti side is playing catch up — though hemp companies have pledged to raise $5 million, and give those funds to the state’s Republican Party.

What they’re saying: “The Republican Party of Florida was really vocal about not wanting voters to support legal marijuana in the state in the November ballot,” Dr. Luzmarina Garcia, a political scientist at Florida Atlantic University, told Benzinga. 

“But it also is a little paradoxical because this is a prime example of state's rights. So, getting this issue that could potentially be in the arena of the federal bringing to the state level an amendment is very much in line with conservative values.” 

And: “The optics certainly are not good,” David Culver, the senior vice president of public affairs at the US Cannabis Council told MJ Biz. “If Gov. DeSantis has his way, adults will have easy access to unregulated, potentially dangerous intoxicating hemp products, but they will continue to have to jump through numerous hoops in order to buy safe, legal cannabis.”

But, but, but: Some hemp supporters say they’re for cannabis legalization — just not the vision of legalization laid out in Amendment 3. 

Some say the ballot measure would be a handout to corporate cannabis firms like Trulieve, and make it nearly impossible for small businesses to compete. 

Others say they want a fair playing field, for both cannabis and intoxicating hemp products.

Meanwhile: DeSantis continues to lie about the impacts of cannabis legalization, which makes us question who’s advice he’s taking.

Earlier this week, DeSantis claimed that voters in Colorado “regret” legalizing cannabis, which is factually not true — 67% of voters in a recent poll said they see legalization as “positive” for the state, reports Marijuana Moment. 

-JB

Canadian cannabis firm Tilray received approval to introduce its third medical cannabis product in Portugal, the company said. Tilray is building out its presence in Europe — it recently landed the first cultivation license in newly-legal Germany. 

The New York Office of Cannabis Management highlighted proposed changes to dispensary advertising, discounts, and shopper loyalty programs on X:

New York’s home grow rules, in chart form:

Medical groups are divided over Biden plan to loosen DEA restrictions on marijuana| STAT News

Trump and DeSantis supporters love their cannabis: Is rift between anti-weed politicos, pot users brewing in the Sunshine State? | Benzinga

Kamala Harris would be first major presidential nominee to back marijuana legalization | Filter Mag

Under pressure from weed consumers, California regulators hustle to start testing for pesticides | Los Angeles Times

Most of Kamala Harris’s potential VP running mates support marijuana — and some have even signed it into law | Marijuana Moment