Ghost in the Machine

Weighing a nonfundamental dislocation.

Daily Recap

A key House committee will soon consider newly filed amendments to a large-scale spending bill that would prevent the drug testing of certain federal job applicants for marijuana + end the blockade that’s kept Washington, D.C. from legalizing cannabis sales.

Lawmakers in the U.S. House of Representatives last week refiled a bipartisan bill to legalize and regulate marijuana at the national level. The legislation, known as the States Reform Act, was reintroduced by South Carolina Republican Representative Nancy Mace, per a report in Marijuana Moment.

“This bill supports veterans, law enforcement, farmers, businesses, those with serious illnesses, and it is good for criminal justice reform. Furthermore, a super-majority of Americans support an end to cannabis prohibition, which is why only 3 states in the country have no cannabis reform at all,”

Canadian Bake-In

Several cannabis multistate operators are upgrading their Canadian stock listings to higher-tier exchanges and more are expected to join them as the U.S. canna complex migrates toward the ultimate prize of listing on the Nasdaq or NYSE.

The Canadian equity uplistings will move the MSOs from the more junior shit-boards Canadian Securities Exchange (CSE) to the Toronto Stock Exchange (TSX) or the Cboe Canada exchange, a half-step measure they hope will:

1. Lead to higher trading volumes and better liquidity.

   [^ TSX listings are exempt from plant-touching custody restrictions].

2. Remove barriers to attracting institutional investment (see 1^.)

3. Move those companies closer to listing on NYSE or Nasdaq given the stricter requirements [+ they’ll eventually drop on the U.S exchanges as ADRs]

New York Pot-Holes

The pro-pot politicians in New York who backed the progressive weed laws are now fuming about all the illegal cannabis shops that have overwhelmed their city. Only a handful of the enforcement actions have been resolved to date and New York Senate committees held a joint hearing on the numerous challenges that continue to plague the state’s ass-backward legalization rollout.

This and That

Ohio is seeing an early voting surge as abortion and marijuana legalization are driving constituents; a West Virginia man says he was fired for reporting illegal activity at a West Virginia Trulieve; Arkansas made $24 million in medical marijuana tax revenue so far this year, with the Natural State tracking toward a new annual sales record; and U.K. medical cannabis imports have tripled in size this year.

Markets

Cannabis stocks put on a brave face today as sector observers tried to fit together the pieces of what may have triggered a non-fundamental dislocation across U.S cannabis, a topic we talked about last night and have more color on today.

We’ll get into that below, tackle the tipping point, weigh the next states that are going green (+ the companies best positioned), check on the deal flow by state, spy the latest odds for SAFER Banking and touch on the year-end wildcards that’ll shape our space.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $65M

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