Cannabis the Exit Drug

Canna reduces opioid-related harms.

Daily Recap

A new federally funded study shows that cannabis legalization in U.S. states leads to reduced prescriptions for opioid pain medications among commercially insured adults—indicating a possible substitution effect as patients choose to use cannabis instead of prescription medications to treat pain.

“These results suggest that substitution of cannabis for traditional pain medications increases as the availability of recreational cannabis increases and leads to decreases in the number of new opioid users, rates of opioid use disorder, and related harms.”

And people wonder why the congressional pharma cucks are trying to kneecap RFK Jr.

Prairie Fairies

Licensed cannabis dispensaries in Illinois reported a record $2B in cannabis sales in 2024, making their state the third in the nation to eclipse that annual benchmark with only California ($4.7B) and Michigan ($3.3B) above them on the leader board.

Illinois’ 2024 total represents a 2.5% increase over the $1.96B in cannabis sales from 2023 and a 94% increase compared to the $1B in cannabis sales during the first year of the state’s adult-use program in 2020. The state sold a cumulative $8.7B in adult-use and medical cannabis since the adult-use program commenced five years ago.

tHe dEvILs LeTtUcE

Lawmakers in Arkansas advanced legislation that’ll set aside revenue from medical marijuana taxes to pay for free breakfast for students. The bill would provide meals to students regardless of whether or not they qualify for free or reduced-cost food.

“We want them to be successful. Let’s give them the basic tool to be successful, and that is to start the day without an empty stomach.”

PA System

Legalization of recreational cannabis in Pennsylvania has again found itself at the forefront of political discourse after Gov. Josh Shapiro rolled the subject into his annual budget proposal and highlighted it during his address at the state capitol.

In conversations with dispensary owners in New Jersey, Maryland and New York, Shapiro said, they reported ~60% of their customers are Pennsylvanians.

Shapiro’s budget proposal estimates revenues of $250M for Pennsylvania, with $1.3B over the first five years of legalization, and the PR blitz has commenced 👇

Stocks & Stuff

It was a choppy session on light volume as canna names digested this week’s uneven gains. Select LPs continued to squeeze higher following yesterday’s earnings, and U.S. names edged lower after some end-of-day slippage.

U.S. cannabis ETF MSOS finished the session down a percent and is -3% YTD.

Below, we’ll top-line the space, explore the readthroughs of the recent happenings, check the debt wall, who should be worried and who shouldn’t, and dig deeper into the largest domestic and international footprints on both sides of the border.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $22M

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