Battle Scars

U.S. canna continues to fight.

Daily Recap

A Pyrrhic victory is a victory achieved at a great cost, resulting in significant losses for the victor; and the longer it takes for federal reform to arrive, the more I think of King Pyrrhus, who won his battles but lost the war.

U.S. cannabis companies are currently mired in a decade-long battle with a status quo that includes an effective tax rate of 70%, no access to capital markets, and stocks that have been banished to Canadian Syberia to list. All of that is bound to leave a mark.

Still, there will be winners, there will be losers, and there will be turnaround stories by management teams that are currently down, but certainly not out. One would hope that federal reform, once achieved, won't be a Pyrrhic victory bc the longer it takes, the more likely it becomes for an American industry that employs 450,000 people.

Of course, President Trump has only been in office 38 days, so there’s that, too.

O-HIGH-O

The Ohio Senate has approved a bill to make significant changes to the state’s voter-approved cannabis law by halving the number of plants adults could grow, adding new criminal penalties and removing social equity provisions, among other revisions.

“Senate Bill 56 is a great bill because it’s reasonable, appropriate, it cuts down on the illicit marijuana market and it’s truly about protection and safety of children.”

Bagels and Locks

New York’s Office of Cannabis Management has sealed and padlocked 207 unlicensed cannabis stores as the number of legally operated stores continues to climb.

With 307 legal shops now operating in New York, the state is on track to reach more than $1 billion in sales in 2025 based on its $110 million in retail sales in January. In 2024, New York’s estimated cannabis revenue was $1 billion.

Kingpin

Pennsylvania is edging closer to full cannabis legalization, with key lawmakers, state officials and Gov. Josh Shapiro all signaling readiness for reform. The renewed push includes a bipartisan effort in the legislature, as well as a public campaign by U.S. Sen. John Fetterman (D-PA), who is rallying national support for federal legalization.

Stocks & Stuff

It was a mixed session in Cannaland as (what’s left of) the market digested the recent news and the broader tape took a header. U.S. cannabis ETF MSOS finished the sesh almost 2% higher but as we know, it’s all relative.

Below, we’ll rank and review recent earnings, check the current state of credit after a major player refi’d, flag a he said-she said regarding potential federal reform, and try to keep our mind right despite the four-year old bear that’s trying to eat the space.

All that and more, just scroll down.

note: there will likely be no Cannabis Confidential tomorrow.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $10M

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