Dehydration

Canna cramps without liquidity.

Daily Recap

To meet the federal definition of hemp under the 2018 Farm Bill, a cannabis product must contain less than 0.3 percent delta-9 THC. Now, in a new letter clarifying that limit, a top DEA official says the threshold includes not only delta-9 THC but also the related cannabinoid THCA, which is converted into delta-9 THC when heated.

DEA’s position on THCA comes as federal lawmakers reconsider how to address hemp and cannabinoids under a revised version of the Farm Bill. An amendment that would ban intoxicating hemp-derived cannabinoids (such as delta-8 THC) was adopted last week by a key House committee.

Czar Tissue

The White House drug czar says the Biden administration’s move to reschedule canna will have a “historic and long-lasting impact” that could also make banks more willing to work with state-licensed cannabis businesses via “legitimate interstate commerce.”

“Rescheduling is a process that will continue to go on for the remainder of the year. The historic nature of the actions we’re taking cannot be minimized.”

New York Throughway

Chris Alexander, the inaugural head of the New York Office of Cannabis Management, resigned following weeks of public turmoil between the agency and Governor Kathy Hochul’s office. He had served in that role since September 2021.

“I planned to serve out the remainder of my term but I no longer have confidence in my ability to do my job and lead this team effectively under current circumstances,” he said, implying that he effectively lead that team under other circumstances. 🤷‍♂️

Trust Issues

More than half of Americans trust people with live experience (67%) or who use canna (56%) to create good cannabis policy. In contrast, only a fraction trust executives from alcohol (13%), tobacco (18%) and pharmaceutical (24%) companies.

A majority believe canna legalization should benefit MMJ patients (85%), adult-use (63%), industry workers (73%) and those impacted by law enforcement (61%). The survey indicates strong support for locally owned (57%) and small businesses (56%).

Stocks & Stuff

It was another tenuous session in Cannaland as the path of least resistance continues lower, testing patience and another technical inflection point. U.S. canna ETF MSOS finished 2% lower with liquidity thin, as one might expect when buyers are locked out.

Below, we’ll chew through today’s price action, talk through the current set-up, sniff at whether the rescheduling catalyst was sold or if it hasn’t even happened yet, touch on institutional appetites and update our weekly comps.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $106M/ $72M

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