Cartels Not Canna

War on Drugs must focus on Fentanyl.

Daily Recap

Ohio recorded approximately $675M in legal cannabis sales in 2024, which includes $433M from the medical program and $242M in five months of adult-use sales.

Ohio’s legal marijuana sector could grow to around $1B in annual sales in 2025, which marks state's first full calendar year of adult-use—but whether the industry meets it’s potential will depend on key rules and regulations that are still being ironed out.

OMB OMG?

Another anti-marijuana official is assuming a role in the Trump White House, with the Senate confirming a director of the Office of Management and Budget (OMB) who has called marijuana a “gateway drug” and pushed for the rollback of state-level reform.

He would play a role in any future drug scheduling decisions—a function that’s all the more relevant given the ongoing rescheduling process—but like the other appointees, from Bondi to Maltzy to Bob, oh my, he will serve at the pleasure of the President.

Mr. Maltz is a bit of a legend in DEA circles as he was a major player in the capture of Joaquín "El Chapo" Guzmán. If Mr. Maltz remains in that role, let’s hope he’ll continue to focus his energies on dismantling cartels and making fentanyl Public Enemy #1.

Five-O said, "Freeze"

Hawaii’s House of Representatives voted to delay a sweeping proposal that would have legalized cannabis, effectively halting the bill’s progress until the next session.

There’s still a shot the legislation’s Senate vehicle could find it’s way to the governor’s desk, but the bill would still need to win over reluctant lawmakers in the House, and it faces a committee deadline next Friday.

Bank Shot

New York regulators launched a new resource intended to connect licensed cannabis businesses with banks that are willing to work with the industry desipite the continued barriers to financial services that have been created by federal prohibition.

“This initiative is part of the Office’s strategic efforts to reduce regulatory barriers and improve financial stability for cannabis businesses. The lack of accessible, compliant financial services has long been a challenge for licensed operators, complicating essential operations and transparency.” -Office of Cannabis Management (OCM)

Stocks & Stuff

It was a soft session in Cannaland as the bears sold into nascent optimism that the Trump administration will follow through on their campaign pledges. U.S. cannabis ETF MSOS lost 4% on the day but still managed a 5% gain for the week (-7% YTD).

Below, we’ll top-line the landscape, preview the widely expected lackluster earnings, sniff at possible catalysts between now and then, give credit where credit is due, and offer some much-needed perspective as we roll toward the Super Bowl.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $19M

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