Dust in the Wind

U.S. canna awaits federal reform.

Daily Recap

President Joe Biden’s mention of ongoing marijuana reform efforts during his annual State of the Union address was considered a landmark achievement for MJ policy by political observers as well as stakeholders in the $34 billion U.S. cannabis industry.

But those keen to know precisely when the U.S. Drug Enforcement Administration will issue its much-anticipated response to health regulators’ recommendation to move cannabis from Schedule 1 to Schedule 3 of the CSA remain frustrated and impatient.

“This is a closed process, I can’t give you anything concrete… but I still feel confident saying that we are going to see something out of DOJ sooner rather than later.”

David Culver, SVP, U.S. Cannabis Council

Virginia Wolf 🐺

Virginia’s 60-day General Assembly session adjourned without the state’s Republican governor signing into law a bill legalizing adult-use cannabis sales but that’s likely because the Democratic-controlled GA hadn’t formally send Gov. Youngkin the bill.

But it’s also because the Democratic opposition to a Youngkin pet project—a publicly financed basketball and hockey arena in a Washington DC suburb—has ended hopes of bipartisan cooperation on other issues, including recreational cannabis sales.

Like A Good Neighbor

The Republican governor of New Hampshire reaffirmed that he’d sign a bill to legalize marijuana, despite his personal reservations about the policy change, as long as it contained provisions including state control over the market.

“I don’t love the idea of legalizing cannabis here. I really don’t, but knowing that it is probably inevitable, there’s a responsibility to getting the system right. Other states around us have got their systems very wrong.”

Mob Mentality

Industry stakeholders are alleging New York’s Office of Cannabis Management—the agency charged with overseeing the state’s legal canna market—is using enforcement powers to retaliate against those who speak out about its part in the flawed rollout of the new marketplace.

Audio recordings, emails, social media posts and more than a dozen interviews with business owners provide evidence as to why these operators are scared to talk: they’re afraid to be denied a license, or risk “selective enforcement.”

Wind Chimes

Cannaland skipped another risk-on rally and drifted aimlessly for the better part of the session before closing right about where it started. U.S. cannabis ETF MSOS finished the day down less than a percent on light volume ahead of earnings and expiration.

Below, we’ll chew through what’s changed (and what hasn’t), dust for fingerprints on yesterday’s news, look at the option influences ahead of Friday’s expiration, preview tomorrow’s earnings, update the charts and talk portfolio composition.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $75M ($41M)

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