History Rhymes

Alcohol prohibition ended 90 years ago today.

Daily Recap

Adult-use retailers in Illinois sold a record monthly amount of legal cannabis in November—to Illinoisans, at least. $106M worth of canna products were sold to residents + $33M to out-of-state visitors for a total of $139M, taxes not included.

Razor-giving-back

Medical marijuana sales have reached record numbers in the state of Arkansas and the profits are extending beyond the growers and dispensaries. Sales have cleared $1B to date and those tax revenues are benefiting Arkansas food insecurity efforts.

“A billion dollars has been spent to purchase medical marijuana but what that means is that we've collected $115M dollars in state tax revenue…that funding will now to go specifically to food insecurity.”

Virginia is for Puffers

In the wake of the Democrats’ victory in last month’s legislative election, advocates for a state-regulated cannabis marketplace in Virginia are cautiously optimistic as they anticipate changes in policies that could finally lead to legal retail sales. 

“I’m a little bit more hopeful for the future. Democrats have to step up and deliver but we’re working with lawmakers from both sides and I don’t see why we won’t get it done.”

On this Date

woman in the black hat (middle) staring at camera looks like she could use a drink

On December 5, 1933, three states voted to repeal Prohibition, putting the ratification of the 21st Amendment into place. The ratification marked the end of federal laws to bar the manufacture, transportation, and sale of liquor and returned control of liquor laws back to the states.

Here are five interesting facts I found online from the National Constitution Center:

1. Two states—North and South Carolina—rejected the 21st Amendment before December 5, so the vote wasn’t unanimous.

2. Another eight states didn’t meet before December 5 and didn’t even act to vote one way or the other on the 21st Amendment: Georgia, Kansas, Louisiana, Mississippi, Nebraska, North Dakota, Oklahoma, and South Dakota.

3. One state didn’t end its version of Prohibition until 1966. Mississippi decided to keep its Prohibition laws for another three decades and as of 2004, half of Mississippi’s counties were dry. Today, 17 states don’t allow any of their counties to be dry.

4. It was never illegal to drink during Prohibition. The 18th Amendment didn’t bar the consumption of alcohol, you just couldn’t make, sell or ship it for mass production and consumption.

5. The Cullen-Harrison Act (no relation), signed about 10 months before the 21st Amendment was ratified, allowed people to drink low-alcohol content beer and wine.

^incoming President Franklin D. Roosevelt amended the Volstead Act in April 1933 to allow people to have a beer or two while they waited for the 21st Amendment.

^ the first team of Budweiser Clydesdales was sent to the White House with a case of beer for President Roosevelt.

A Show About Nothing

After yesterday’s wild ride, cannabis stocks exhaled today, with U.S. cannabis ETF MSOS meandering in a modest 3% range before closing flat. Volumes and option activity were active beneath today’s seemingly calm surface as degenerates traders placed their year-end bets.

Below, we’ll chew through fresh levels, check on trends on both sides of the border, take a pulse of the underlying tenor, spy the machines, map a plan, contemplate the absurdity of it all and try to add incremental value on an underwhelming day.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $81M

Top Stories