Dawn of the Dead

Five upcoming catalysts could awake the space.

Daily Recap

As the U.S. House of Representatives enters its third week without a speaker, more GOP lawmakers have tossed their hats in the ring for a grab at the gavel—including someone who’s been arrested for cannabis, another who co-chairs a congressional psychedelics caucus and yet another who whose last name alone will trigger PTSD.

Political observers are doubtful that any GOP contender will be able to garner the 217 votes needed to win the Speakership, which will presumably either 1. re-introduce the specter of a bipartisan solution or 2. lead to an agreement within the GOP caucus that they’ll back the nominee who garners the most votes. (h/t Don Murphy)

Our hope is that our elected leaders soon end this national embarrassment and that they allow for enough time to avert an actual shutdown in three weeks. The world is watching, there are decisions to be made, bills that must pass and amendments that will likely be added when that time arrives.

Speaking of which, Cannabis Wire reports that cannabis banking reform has attracted more congressional lobbying attention than any other cannabis legislation. Several entities listed SAFER Banking on their lobbying disclosures for Q323, including Bank of America, Mastercard, the NRA, CBOE, GlaxoSmithKline and The International Association Of Machinists And Aerospace Workers.

State of Play

A new survey of Ohio lawmakers suggests that a majority—54%—believe voters will approve a ballot initiative on November 7th to legalize marijuana in the state, with a majority of both Democratic (63%) and Republican (52 %) lawmakers saying it’ll pass despite the GOP-controlled Senate passing a resolution urging voters to reject it.

Given the massive increase in illegal cannabis stores in New York since adult-use was legalized in 2021, lawmakers notified Manhattan landlords of their legal and financial liability for leasing to stores illegally selling cannabis. New York City Local Law 107 imposes fines on property owners who knowingly lease premises to unlicensed sellers.

Around the Horn

Delta-8 legality is a patchwork of irony across the nation; legalizing cannabis hasn't been the quick fix the U.S. hoped for; five years in, Canada would agree as taxes are killing the buzz up north; fan-fave former Congressman Ed Perlmutter talks SAFER Banking; Missouri MJ operators are facing fresh turmoil amid recall confusion; and California cannabis operators are suing rivals who sell hemp-derived THC products.

Market Stuff

It was a quiet session for the cannabis space today as $50M notional volume traded across the entire complex, ETFs included. The sector opened lower with the broader tape, failed to lift during the midday bounce and closed 3% lower, as measured by the ETF.

Below, we’ll talk tape into the last full week in October ahead of what promises to be an eventful November for the markets and our sector, naming names + talking timing on five potential catalysts. We’ll also sniff at some of the flow that we’ve seen cross the tape, dig into a freshly-minted comp table and stack the stores across the land.

All that and more, just scroll down…

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $50M

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