Cannabis industry leader Dutchie laysoff a ton, read this https://cannabis.net/blog/news/marijuana-industry-layoffs-what-is-the-dramatic-shift-dutchie-sees-that-made-them-layoff-67-emp

1. 6/17/22, 12:18 PM Marijuana Industry Layoffs - What is the Dramatic Shift Dutchie Sees That Made Them Layoff 67 Employees?
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MARIJUANA LAYOFFS
Marijuana Industry Layoffs - What is the
Dramatic Shift Dutchie Sees That Made
Them Layoff 67 Employees?
Is the weed industry is booming, why are there growing layoffs going around?
Posted by:
Joseph Billions , today at 12:00am
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2. 6/17/22, 12:18 PM Marijuana Industry Layoffs - What is the Dramatic Shift Dutchie Sees That Made Them Layoff 67 Employees?
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On the 6th of June 2022, reports of Dutchie laying off 8% of its employees hit the news, and the CEO and co-founder of
the company, Ross Lipson immediately confirmed the reports. He cited reasons such as a "drastic market change" and
the need to "restructure" various units of the company as what brought about the layoffs.
Taking a closer look, the company's employee count isn't the only thing that has declined of late. Based on the
interviews conducted by Forbes (https://www.forbes.com/sites/willyakowicz/2022/06/10/dutchie-the-cannabis-
industrys-highest-flying-software-company-falls-back-to-earth/?sh=270728ee3fd1) with present and past employees,
present Dutchie fund managers and investors have also declined to invest in the company. Does this mean the days of
stratospheric valuations have come to an end?
(For the sake of anonymity, the names and identities of people interviewed by Forbes are withheld)
An investor who was contacted several times by Dutchie shareholders claimed during the interview that Duchie's last
year's valuation was nothing but lunacy. He affirmed that those who paid for the share were in a different time and a
different world.
Presently, no sales have been executed at a lower valuation on the secondary market. Although, some sources claim
their several shareholders from all categories are looking to exit. Some shareholders who bought in very early are
willing to sell their shares at a valuation of $ 1 billion, while later investors are looking to sell as low as $1.7 billion. A
sale at $1.7 billion indicates a 55% discount from its current valuation of $3.7 billion.

3. 6/17/22, 12:18 PM Marijuana Industry Layoffs - What is the Dramatic Shift Dutchie Sees That Made Them Layoff 67 Employees?
https://cannabis.net/blog/news/marijuana-industry-layoffs-what-is-the-dramatic-shift-dutchie-sees-that-made-them-layoff-67-emp 4/9
Investors Initial Investment
Investors initially flooded to buy Ditchie's shares given the company's potential for excellence at the infancy stage of
the cannabis industry. In 2020, cannabis sales across the United States reached a total of $17.5 billion and this number
is predicted to reach $100 billion by 2030 (https://cannabis.net/blog/news/ending-the-drug-war-could-add-100-billion-
to-the-us-economy). Dutchie being a cannabis software company became a way for many to invest in the cannabis
industry without actually investing in a proper cannabis company.
Lipson has affirmed that even with the layoffs (https://cannabis.net/blog/videos/weed-talk-live-a-legend-passes-brady-
smoked-weed-cannabis-layoffs-and-more), the company's position in the market remains unchanged and Dutchie will
continue to deliver to its investors and clients. Addressing the rumors about a decline in Dutchie's valuation, Lipson
claimed that the current valuation remains unchanged since the latest round of funding and all rumors contrary to that
are false.
In his words, Dutchie still holds a very strong position in the market and the company is more focused on continuous
growth. He said that the company will go to employ top talents and reach out for more growth opportunities that will
lead to the achievement of business objectives. Through this, the mission of the company can proceed, providing easy
and safe access to cannabis while pushing thr cannabis sector award.
Meanwhile, the head of a venture capital company who is an early investor and has invested in Dutchie's three
successive rounds of funding, believes Dutchie's valuation has dropped. However, he's still very optimistic about
Dutchie and advised that the company should reduce headcount and battle down the hatches.
He claimed that even though Dutchie is still fundamentally solid, one cannot just ignore that the tech has cratered. The
investor claimed that he's not surprised that available offers are not present in the secondary market. Although he
thinks a 50% discount is mere speculation given tech is also down by 40% or more.
As it stands, an unprofitable cannabis software company with about a $20 million monthly burn rate and annual
revenue of $45 million could reach a valuation of $3.75 billion. The investor pointed out that big names such as Durant
and Schultz helped Dutchie achieve such big numbers.
Not alone in the Downturn.
The current issues faced by Dutchie aren't peculiar to the software company. Eaze, a cannabis delivery firm, and
Akerna, also a software company have laid off some employees in recent times.
On the other hand, MSOS, a cannabis firm that is publicly traded has also experienced a down. The firm is down by
70% when its numbers are compared to the previous year. Some of the biggest cannabis firms kike Green Thumb
Industries, Trulieve, and Curaleaf have also witnessed their stock prices plummet by 60% since June 2021.
This downturn also spread to other venture markets as Forbes reported that many startups with a valuation of $1
billion or more now trade in the secondary market at a discounted rate between 20% and 40%.
So far, Dutchie's sponsor, Tiger Global has refused to comment while Cass Verde and D1 Capital did not respond to
emails and calls. Dutchie affirmed that one of its investors bought more shares on the secondary market at the present
valuation but failed to mention the investor.
Gaurav Ahuja, a partner of Thrive Capital stated that the company is still very optimistic for Dutchie and doesn't believe
the economic headwinds will last long. He affirmed that since cannabis legalization continues to grow across the globe,
firms like Dutchie still have enough space to grow and witness rapid growth. And this is true even when vast
macroeconomic situations are at play.
However, both a former employee and a present employee confirmed that the firm is behind in the launch of several
products. The notable Dutchie Pay which Dutchie advertised as a mobile payment product that enables customers to
order and pay for cannabis products online using ACH transfer. The app had an alpha launch in the first quarter of

4. 6/17/22, 12:18 PM Marijuana Industry Layoffs - What is the Dramatic Shift Dutchie Sees That Made Them Layoff 67 Employees?
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2022 but a wider rollout is still pending.
The former employee claims that people in the company have seen the writing on the wall. He claims Dutchie does not
have enough products to substantiate its valuation and lacks adequate strategies too.
An investor who refused to pour his money into Dutchie after several offers from the company did confirm that
Dutchie has a smoky software offering. However, he wonders if it is better than its mainstream competitors. The
investor claim that Dutchie sells itself by saying they are the Shopify of cannabis, but the question is why can't Shopify
be the Shopify of cannabis?
Conclusion
Only time will tell if Dutchie will be able to pull itself out of this downturn. Just like Gaurav Ahuja said, since cannabis
legalization continues to grow across the globe, firms like Dutchie still have enough space to grow and witness rapid
growth. So one can only be optimistic for the cannabis software company.
CANNABIS LAYOFFS, READ MORE...
(https://cannabis.net/blog/videos/weed-talk-live-a-legend-passes-
brady-smoked-weed-cannabis-layoffs-and-more)
CANNABIS INDUSTRY LAYOFFFS ARE HERE, WHAT IS GOING ON? (https://cannabis.net/blog/videos/weed-talk-live-a-
legend-passes-brady-smoked-weed-cannabis-layoffs-and-more)
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6. 6/17/22, 12:18 PM Marijuana Industry Layoffs - What is the Dramatic Shift Dutchie Sees That Made Them Layoff 67 Employees?
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(https://cannabis.net/blog/opinion/how-does-the-moon-affect-your-cannabis-plants-when-you-crop-out)
OPINION
How Does the Moon Affect Your Cannabis Plants When You Crop Out?
It’s the reason you flush. Thus, if you want to quickly cure, the balsamic phase is the best. However – if you’re looking for shelf life – then perhaps cropping out
under the full moon might not be a bad idea. At least when it comes to food crops, this makes perfect sense. However – considering that cannabis requires
curing, it may be counter-productive on a large scale and would increase the chance of mold developing. For the “Stay-at-home” growers out there, try cropping…

7. 6/17/22, 12:18 PM Marijuana Industry Layoffs - What is the Dramatic Shift Dutchie Sees That Made Them Layoff 67 Employees?
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(https://cannabis.net/blog/opinion/to-serve-and-steal-how-the-police-and-the-fbi-can-take-your-stuff-without-ever-charging-you-wit)
OPINION
To Serve and Steal - How the Police and the FBI Can Take Your Stuff Without Ever Charging You with a Crime
Where do you go - when the people you’re supposed to go to when you get robbed – robs you? This is what happened to the driver of an armored car carrying
$712,000 in cash from licensed dispensaries in California. The San Bernardino County Sheriff pulled the driver over on a Mojave Desert freeway, interrogated him
and then seized the money, which they later turned over to the FBI. This according to an article in the LA Times.

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(https://cannabis.net/blog/medical/cbd-for-lupus-how-cbd-helps-manage-lupus-symptoms)
MEDICAL
CBD for Lupus - How CBD Helps Manage Lupus Symptoms
Inflammation: When the body senses an infection, inflammation occurs as a way to treat it. Many studies have validated CBD’s prowess in addressing immune
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without any of the harmful side effects that come with taking pharmaceutical drugs. It also helps to fight oxidative stress on cells, and acts as an…
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