Freak Show

D.C. drama distracts the nation.

Daily Recap

A landmark cannabis bill is headed to the Senate floor and a host of lawmakers and former lawmakers, including Ed Perlmutter, John Hickenlooper and Jared Polis, are hailing the legislation as a game-changer for the U.S. cannabis industry.

“Forcing legal businesses to operate all-cash is dangerous for our communities and an open invitation to robberies, muggings, money laundering, and organized crime— the only people benefiting from the current system are criminals,” said Democratic U.S. Sen. Jeff Merkley of Oregon in a statement after the bill passed the committee.

Should banking legislation finally pass the senate, as it appears it will, the focus will shift to the House which, let’s be clear, is a complete shit-show. Today’s D.C drama is the latest in a long line of political embarrassments for our Republic and the markets will continue to price in that uncertainty on the margin.

While SAFER would be a solid sweetener for the more-seismic steppingstone that is Schedule III—that would irradicate the 75% effective tax-rate U.S. cannabis operators are forced to endure—the show me crowd is demanding to see the next card…

VIII Capital

…which, according to peeps who follow such things, could potentially turn in the next few weeks. As the DEA is perceived to be the single-biggest risk to this historic shift, an affirmation of the HHS recommendation could prove to be the tipping point in the acknowledgment of federal reform, particularly if it is paired with the Garland Memo.

The Florida Supreme Court has scheduled the much-anticipated hearing to decide if the state’s legalization initiative will make the 2024 ballot. With key arguments and responses already having been submitted, the dispute will be heard on November 8th.

New Mexico adult-use marijuana sales crossed the half-billion-dollar mark, Missouri announced the winners of 48 cannabis micro licenses, Colorado awarded its first MJ social equity businesses loans, Georgia’s MMJ operators could be hurt by a regulator’s mistake, Wyoming advocates are attempting to get their initiatives on the 2024 ballot and there are now 50 NJ dispensaries selling adult-use canna across eighteen counties.

Below, we’ll dig deeper into today’ stock market action, highlight a top U.S pick in the space, monitor the never-ending short-interest, talk through the expected sequencing of catalysts and dive into Village Farms after last night’s Vancouver dinner and ahead of today’s site visit in Delta, British Columbia.

All that and more, just scroll down.

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

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