Gorillas in the Midst

New money dips a toe in U.S. canna

Daily Recap

TerrAscend pre-announced positive results (again) and raised full year 2023 guidance for net revenues and adjusted EBITDA. The company also forecast both 50%+ gross margins and positive free cashflow from operations for the second half of the year.

Trulieve is claiming a refund of $143M from taxes paid which the company believes it doesn’t owe, although there’s no guarantee of receipt. This effort was driven by a legal interpretation that challenges the Company's tax liability under IRC Section 280E.

The U.S. House of Representatives, after another wasted week, remains out of order…

…which doesn’t help the canna cause. “It’s not as if it was easy before all this,” said Justin Strekal, a political organizer and advocate, “and this does make it harder.”

With that said, two notable industry stakeholders, on separate occasions but perhaps getting their intel from the same source, said, "a full Senate floor vote could happen in the chamber’s work period that begins next week and ends before Thanksgiving."

State Farms

Arizona retailers sold $104M worth of legal cannabis products in July; Rhode Island sees record adult-use marijuana sales; New York will issue more than 1,000 new MJ licenses, New Jersey plans to promote delivery service to deter impaired driving, the New Mexico MJ industry is rife w rule breakers, Oregon officials failed to maintain public trust; we look at the Maryland market, and the potential impact of Ohio.

German Shepherd

German lawmakers delayed their marijuana legalization bill debate due to the Israeli conflict, although enactment of the first part of the government’s legal cannabis plan is still expected by early next year.

Market Stuff

Cannabis stocks had another up-and-down session as in, at first they were up, and then they went down, before finishing slightly higher on anemic volume. A grand total of $70M notional traded across all plant-touching pubcos/ETFs.

Below, we’ll finger the $24B fund platform that filed as a holder of select U.S. cannabis stocks, sort through our year-end wish list amidst the conflicting headlines, sniff at some potential regulatory shifts in Canada and keep it real as best we can.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $70M

Top Stories