Happy Spring

Canna waves goodbye to Winter.

Daily Recap

A North Carolina state lawmaker introduced legislation to legalize adult-use cannabis.

If passed, it would legalize the possession, use and cultivation of cannabis for adults aged 21 and older. Rep. Jordan Lopez said he’s unsure if his bill will pass, but he’s happy the legislation is continuing the conversation about cannabis policy reform.

“A majority of North Carolinians want to see cannabis legalized, either recreationally and/or medically. I clearly support the former, this conversation is still long overdue!” Rep. Jordan Lopez

Majority Rules

About three in four young adults say they’re substituting cannabis for alcohol at least once per week—a “fast-emerging” trend that reflects the “rapid expansion” of the hemp product marketplace—according to a new survey and analysis from BI.

The report found that, across various demographics, cannabis is increasingly being used as an alternative to alcohol and even non-alcoholic beverages as companies—including major multi-state marijuana operators—expand their offerings.

California Hitchhike

Taxes on California cannabis businesses statewide are expected to rise this summer. but a Bay Area legislator is trying to freeze the tax increase. State Assemblyman Matt Haney plans to introduce the Cannabis Tax Relief bill, to stop a tax hike — from 15% to 19% — set to go into effect on July 1.

“The illicit market is the biggest competition. As a full retail community, our biggest competitors are not each other, but rather a market that’s unregulated.”

Maple Tree

Facing a saturated market and intense competition domestically, Canadian cannabis companies are exporting more of their products overseas. The canna export market is an opportunity for businesses to tap new revenue streams and mitigate the impact of Canada’s domestic excise taxes, or their version of IRC. 280E.

“European markets are taking a much more pragmatic approach to the regulatory environment and see real potential for cannabis as medicine. There’s not as much dysfunction as there is in the U.S., where there’s all sorts of red tape and regulatory frustrations. They’re letting these markets behave in a way that’s rational.”

Sam Gibbons, SVP, Village Farms

Stocks & Stuff

It was another thin session with less than $4M notional trading in MSOS and little to no flow in the underlyings, almost as if the market makers turned off their machines.

Below, we’ll step into Spring, dig into MSO capital stacks, keep our eyes peeled for the next GW, and monitor the hemp regulations that heating up across state legislatures.

All that and more, just scroll down.

note: there will be no Cannabis Confidential tomorrow. 🥍

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $3.5M

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