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Investors revisit U.S. cannabis.

Daily Recap

New York Governor Kathy Hochul (D) is calling for the elimination of a THC potency tax as part of her executive budget in an effort to reduce costs for consumers in a way that could make the regulated market more competitive against illicit operators.

Her 2025 budget would repeal the potency tax and replace it with a wholesale excise tax of 9% in a way that “simplifies, streamlines, and reduces the tax collection obligation.”

Chowder Heads

Rhode Island adult-use cannabis purchases crushed the state’s monthly record in December, with almost $8M in adult-use sales and another $2.4M in MMJ.

Overall, the Ocean State sold more than $100M in legal marijuana sales last year, with adult-use consumers accounting for two-thirds of the total tally.

Last dance with Mary Jane

Nine cannabis-related bills have been introduced into Indiana’s legislative session, with most aimed at legalizing the plant in some capacity. Lawmakers have cited tax windfalls in states like Illinois and Michigan as incentives to finally go green.

Stocks & Stuff

It was a whippy session in Cannaland as the sector digested the latest news.

After gapping 8% higher on the opening, U.S. canna ETF MSOS almost made all gone before buyers emerged late in the day to steady the space. The total notional volume of U.S. plant-touching stocks was $250M, with $141M of that via the ETF.

Below, we’ll walk through today’s trading, check in with several analysts, tweak our positioning, share some fresh comps and ready ourselves for the rest of the week.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $250M

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