Breadcrumbs

The clues continue in Cannaland.

Daily Recap

Today, President Biden used his authority under the U.S. Constitution to advance equal justice under the law by granting clemency to 16 deserving individuals who were convicted of non-violent drug offenses.

While the size and scope of those executive actions have left many observers wanting for more, the move continued the steady drumbeat of positive news for the cannabis complex that some ✋ believe will culminate in federal reform before the election.

Subway Series

Since New York cannabis regulators met earlier this month, a firestorm has emerged among cannabis trade organizations and business license applicants after one of the leading trade associations appeared to argue that the marijuana permitting process should be curbed and there should be a cap on the number of businesses allowed.

The issue quickly escalated on social media as some trade group critics asserted they were undermining its own membership in order to protect the relatively small number of companies that have already landed business permits.

San Andreas’ Fault

California Cannabis companies are facing massive debt issues, with total unpaid taxes of $732M. The bulk of this debt, approximately 72%, is owed by businesses that have already shut down, posing a huge challenge to the state to recover those funds.

In addition to the debts from defunct companies, there are also $173 million in taxes on unlicensed cannabis sales. These illegal sales represent about a quarter of the total market, with an estimated total of $1.2 billion.

MO Lester

Missouri Attorney General Andrew Bailey (R) launched an investigation into four companies Wednesday as part of an effort to crack down on intoxicating hemp products, which are completely unregulated but still sold in bars and gas stations because hemp is federally legal.

Stocks & Stuff

It was Snooze City on both sides of the border as the latest bat signal from Joe Biden was brushed off as the incoherent ramblings of an elderly man. U.S. canna ETF MSOS shook off an early 2% loss—before fading a late 3% gain—before finishing up ~1%.

Below, we’ll chew through today’s price action, discuss why the clemency breadcrumb may prove particularly tasty, sniff at the specter of SAFER Banking and countdown to the inevitable reform that’s been telegraphed to anyone willing to pay attention.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $100M/$74M

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