Friday Night Lights
Rescheduling decision weeks away.
Daily Recap
President Trump is considering reclassifying cannabis as a less dangerous drug after pot companies poured millions of dollars into his politically connected groups, per The Wall Street Journal in article that posted at 9PM on Friday night.
One senior administration official said Trump was interested in taking on issues, like cannabis, that are "80-20 cultural issues.” Others who have talked with the President said that he has referenced friends who use medical cannabis for pain.
In a press conference today, when asked about the issue, the President said that his administration is “looking at” a proposal to reschedule marijuana and they will “make a determination over the next few weeks.” 👀
“We’re looking at reclassification, and we’ll make a determination over the next few weeks—and that determination, hopefully, will be the right one.” President Trump
Turning Point
Trump's contemplation of canna reclassification marks a potential turning point which could allow him to do something that Presidents Obama and Biden didn’t, wouldn’t or couldn’t do: align federal policy with the evidence of the plant’s wellness benefits and address the tarnished legacy of prohibition.
As policy evolves, the focus must be on evidence-based reform that honors the past and protects the future. If President Trump can prudently end America’s war on plants such as cannabis, America may well be better off and healthier for it.
Exit 420 🔜
Patients diagnosed with substance use disorders (SUD) report improved sleep quality, reduced anxiety, and decreased opioid use following sustained use of medical canna, according to data published in the Journal of European Addiction.
While the myth of cannabis as a gateway drug fades, evidence also suggests that growing canna at home is a “gateway crop” to other kinds of gardening. Two-thirds of those surveyed said growing cannabis inspired them to start growing tomatoes.
Turnstiles
A New York State (of Mind) Supreme Court decision upheld the Office of Cannabis’ ability to search and seize weed from unlicensed dispensaries as constitutional. The ruling is a boon for the state’s efforts to shut down illicit cannabis shops.
“OCM has an obligation to support lawful cannabis businesses through enforcement, safeguard New Yorkers’ health and safety, and mitigate the criminalizing harms of past cannabis prohibition."
Stocks & Stuff
It was an active day in Cannaland, as a constructive technical set-up welcomed an unexpected catalyst to drive the space higher.
After weekend social media buzz following the WSJ story, POTUS was asked the first question of his morning’s press conference, and his answer put the market on notice that a binary event is weeks away. BBG summarized his response as follows:
*TRUMP: LOOKING AT MARIJUANA CLASSIFICATION
*TRUMP: MARIJUANA 'VERY COMPLICATED SUBJECT'
*TRUMP: LOOKING AT RECLASSIFYING MARIJUANA
*TRUMP: WILL MAKE MARIJUANA DECISION IN NEXT FEW WEEKS
U.S. cannabis ETF MSOS finished the session +25%—and is now +23% YTD—while international cannabis company Village Farms blew out earnings, adding 34% to what is now a 381% lift off it’s April low.
Below, we’ll synthesize the latest news, contextualize the size of the industry, explore why a little skepticism is a good thing, spy a new global canna leader coming out of the earnings clubhouse, chew through several important charts, and keep it real.
All that and more, just scroll down.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $253M👀
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