Animal Farm
Daily Recap
A key Senate committee officially scheduled a vote on SAFE Banking, signaling that disagreements between certain Democrats and Republicans over key provisions have been addressed. NBC News broke the story Thursday night and as of late Friday, the congressional calendar has the bill scheduled for Wednesday, September 27th.
As Republicans soften their stance on federal marijuana reform in a shift that could make it a reality, a congressional report predicted that the DEA will likely approve the HHS reclassification recommendation. This move, once implemented, is expected to reduce stigma, increase research and encourage innovation.
New federal data shows a record number of banks are already working with marijuana businesses, Treasury Secretary Janet Yellen expressed extreme frustration in congress for not passing cannabis banking yet and a congressional committee plans to vote on the removal of cannabis as a barrier to federal employment or security clearances.
Montana’s legal cannabis sold a record at $28.7M in August; Ohio’s canna legalization campaign is drawing on lessons from their rejected 2015 initiative; Florida’s campaign to legalize MMJ home cultivation hopes to gather a million signatures at dispensaries by January; and the MSOs wanna bum-rush Missouri.
Bad Will Hunting
While an abundance of caution is necessary in any frontier market—and particularly one that relies on the federal government to lurch forward—words are rarely more powerful than a secular sword, as discussed in that denial-migration-panic thing.
There, we touched on the potentially trapped/ naked/ structural shorts who got caught looking the wrong way into the barren wasteland of summer’s end and shared some data that seemingly supports that. A bumpy cusp is a still… a cusp.
A renewed drumbeat of negativity has emerged from some of the louder voices on X, coinciding w/ fresh new capital raises—which again, are a welcome development with a nod to timing + source—and bear raids, which have also picked up in pace.
The last thing we wanna see is rampant euphoria so in a way, continued concerns that motivate shorts to press and longs to ‘wait until something actually gets done’ serves to reinforce that this move could have legs should the right cards continue to fall.
“Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” John Templeton
Below, we’ll go Inside Baseball + delve deeper into the market after today’s out-of-the-gate press hit MSOS 6+% before calmer heads prevailed. It should also be noted that notional volumes were again roughly half of what we’ve seen during recent rallies.
We’ll also review recent cap raises, street research, updated comps + share random thoughts on today’s price action.
The Important Stuff
Verano has launched a round-up for cannabis reform dispensary donation program to benefit The Weldon Project’s Mission [Green]. This is their second such initiative + a huge step forward in our continued efforts to be the change we hope to see.
Thank You Verano for your continued leadership.
If you would like to join the Mission [Green] Alliance as a participating dispensary or simply donate to collect your karma coins/ be on the right side of history, please click here bc nobody should be in prison for a plant.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $123M
Recent Bloomberg Radio 10-min segment on U.S Cannabis here (begins 41:20)
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