Before The Market Opens
The Dales Report
Crypto, cannabis, & psychedelics business & stock market news for forward-thinking investors.
What's Driving the Market Today?
Futures are flat this morning after a megacap-led selloff; S&P and Nasdaq are at multi-week lows. Here are the headlines influencing the market today:
💸 High Impact
Cannabis Deals Are Getting Done
The What - LeafLink, a B2B platform in the cannabis industry, has announced its acquisition of Dama Financial’s banking division. This action by LeafLink marks a significant milestone as it aims to offer secure, compliant, and reliable banking solutions to the cannabis industry, addressing one of its most persistent challenges.
The integration of Dama Financial's banking division into LeafLink’s existing platform is expected to enhance the suite of services already offered to cannabis brands and retailers. LeafLink’s platform includes order and category management, payments, data and analytics, and advertising. With this acquisition, LeafLink positions itself to become a comprehensive B2B operating system for the regulated cannabis industry.
For years, cannabis operators have faced significant challenges accessing secure financial services due to federal prohibition. Many businesses have struggled with withdrawn services, minimal feature availability, and high costs. LeafLink’s acquisition aims to bridge this gap by integrating Dama Financial’s expertise and established banking solutions into its platform.
“LeafLink provides customers with integrated tech solutions that make it easier to run their business, and over the last year, we’ve released several products that will significantly improve our customers’ operating performance and profitability,” said Artie Minson, CEO of LeafLink. “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. By joining forces and incorporating Dama’s banking product into our existing suite of services, we will be well-positioned to usher in a new era of efficiency and help address some of the biggest challenges cannabis operators face.”
LeafLink’s recent increase in its Series D fundraising round from $100 million to $125 million underscores the company’s growth and expansion ambitions. This round included investments from notable firms such as CPMG, Nosara, L2 Ventures, Thrive Capital, and Tiger Global. These funds are expected to further bolster LeafLink's capacity to serve the cannabis industry with innovative and integrated solutions.
The Why - Dama Financial has been a significant player in the cannabis banking sector, having processed over $3 billion in transactions. It has provided access to FDIC-insured banking partners and various financial services, known for its transparency and compliance with banking and cannabis regulations. The integration of Dama Financial’s banking solutions is set to enhance LeafLink’s platform significantly.
“The cannabis industry is in need of integrated solutions at scale, and this deal is a great example of the benefits it will bring to our industry,” said Patrick O’Boyle, CEO of GrowFlow (formerly Dama Financial). “LeafLink is in a strong position to take our established banking solution and build on it even further, offering the industry a unified financial services experience. The product lines not included in this acquisition will rebrand to GrowFlow, remaining focused on enhancing and growing our retail and wholesale product lines to service the cannabis industry.”
LeafLink's acquisition of Dama Financial's banking division aims to solve the cannabis industry's banking challenges by offering a unified financial services experience. Rebranding Dama Financial's remaining products as GrowFlow indicates a focus on enhancing retail and wholesale services.
Big Takeaway
This is an interesting deal coming at an interesting time in the cannabis space. Dama has been a solid banking solution for the cannabis industry for years now, and everyone really began to know the name after they botched their testimony on Capitol Hill during a hearing regarding SAFE Banking. Many saw their remarks as lobbying against SAFE, which in their own self-interest kinda makes sense, but time and place are crucial.
Leaflink has been a cornerstone company in this space for some time now and has withstood the ebbs and flows of the sector, so Dama has presumably found a good home. It will be interesting to see what the future holds and if Leaflink chooses to execute any further acquisitions within the CannaTech space.
📈 Dog Walkers
Tilray Bolsters European Brand Portfolio
Tilray Brands (Nasdaq: TLRY; TSX: TLRY) received approval for its third medical cannabis product, Tilray Solucao Oral THC10, in Portugal, expanding its global operations to over 20 countries. This approval comes alongside significant expansions in Germany and Australia.
Organigram Expands Rare Cannabinoid Portfolio
Organigram Holdings Inc. (NASDAQ: OGI, TSX: OGI) has invested $1 million into Phylos Bioscience to expand its auto-flower and rare cannabinoid portfolio. This funding will help Organigram develop unique cannabis products, including high-potency CBG, CBC, and CBDV seed-based cultivars, enhancing its market position and product diversity.
Recommended by LinkedIn
Curaleaf Expands NY Retail Footprint
Curaleaf opened their 6th retail location in the New York market with the opening of their Rochester location. Operators have taken a careful approach to the New York market and this opening paired with the results that we are seeing and hearing from Operation Padlock bode well for the future of the state.
🗞️ The News
📭 Research
Initiating Coverage: Green Thumb Industries - Download Here
Reconfirming Buy Rating: MariMed - Download Here
Initiating Coverage Of Verano Holdings Corp. - Download Here
Initiating Coverage: TerrAscend - Download Here
📺 YouTube
Biden Drops Out: What Are The Next Steps? | TDR Podcast
What we covered:
✅ On this episode of Trade to Black where Co-Host Shadd Dales and Anthony Varrell will discuss the results of the cannabis rescheduling comment period compiled in a Headset report. In addition, Shadd and Anthony will share an update on all the news affecting Cannabis stocks. This will include updates on:
1. Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI)continues focusing on THCV products through a strategic investment in Phylos Bioscience Inc.
2. A Florida update with more news regarding Ron DeSantis's misinformation campaign.
3. Dallas attempts at Decriminalization.