D-Day

The moment of truth approaches.

Daily Recap

Reclassifying marijuana to a Schedule III narcotic would have broadly positive implications for US operators, despite falling well short of federal legalization.

Such a move would end the effects of IRS Code Section 280E, which has weighed heavily on plant-touching companies by disallowing deductions for traditional business expenses, inflating their federal tax burden.

Though it would still be illegal at the federal level, normalizing its use could bolster legislative support for increasing industry access to interstate commerce, traditional banking services, equity markets and R&D incentives, per Bloomberg Intelligence.

Will of the People

As more states pass laws legalizing adult-use canna, Americans continue to favor legalization of both medical and recreational. An overwhelming 88% of U.S. adults say marijuana should be legal for medical or recreational use.

57% believe that marijuana should be legal for medical and recreational purposes, while 32% say that marijuana should be legal for medical use only. Only 11% of Americans say that the drug should not be legal at all.

Tick Tock

Two of the largest catalysts in the history of the canna industry are coming up quick, with the Florida adult-use vote on Tuesday and the procedural processes for the ALJ hearing now taking shape. It’s hard to overstate the importance of these two events.

There have been a lot of competing narratives in the marketplace—along with some outright fuckery by Ron DeSantis—so please take me at my word when I tell you that tensions are high and industry operators, investors and stakeholders are…

Stocks & Stuff

It was a broken clock session in Cannaland as the space closed green for the first time this week. U.S. canna ETF MSOS ended the day with a 4% gain, but still lost 9% over the five session stretch.

Below, we’ll dive deeper into the ALJ news, what it means, why it matters and when we might see resolution on this years’ long process. We’ll also map both sides of what promises to be a wild ride next week after the dust settles in D.C.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $62M

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