Country Youngkin

Virginia Gov. is putting America last.

Daily Recap

As Governor Glenn Youngkin once again faces a bipartisan bill that would establish a regulated cannabis distribution platform in Virginia, it is widely anticipated he will act against the public’s best interest as he did in March 2024.

In the twelve months since his last veto, the only certainty is that Mexican cartels and Chinese gangs have benefited from $3.5 billion in untaxed, unregulated cannabis sales while the proliferation of hemp-based THC products has skyrocketed.

Virginia has now turned into the two states that it doesn’t want to emulate—but even California and New York eventually legalized retail sales. Virginia, with legal weed and no legal sales network, has become a petrie dish of untested products as the market raced to meet the demand, as it always will regardless of the law.

Pacific Coast High Way

California, the nation’s top cannabis market, continues to battle illegal operations on a grand scale. State officials seized $534 million worth of illegal cannabis last year.

“We will continue to target illegal operations and cut off the illicit revenue streams of transnational criminal organizations that prey on our workers, environment and kids. Enforcement officials are on the front lines with local, state and federal partners in an effort to bolster our legal cannabis market.” Governor Gavin Newsom

Buds for Brutus

A Republican Ohio lawmaker introduced a rival bill to Senate-passed legislation that seeks to amend the state’s voter-approved cannabis laws, and the proposed changes in the House measure are less sweeping, such as maintaining the current allowable number of cannabis plants that can be grown at home by consenting adults.

MO Lester

A Missouri lawsuit challenging double taxation by local and county municipalities on cannabis sales will be heard by the state Supreme Court.

Adult-use sales launched in February 2023 and Missouri has sold ~$1.5B, representing one of the more robust markets in the nation. Canna buyers currently pay a 6% state tax, one of the lowest rates in the United States (which is why the market is so robust).

Stocks & Stuff

It was another snoozer of a session as the space continues to meander in the pay-no-mind club. U.S. canna ETF MSOS finished the day +2% on the lowest notional volume of this young year.

Below, we’ll top-line a wild week, chew through recent earnings, explore how some operators plan to use these prices to their advantage, check on the latest for German MMJ, and talk through the likely path forward for hemp.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $7M

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