Hollow Man

U.S. canna stocks never opened in Canada.

Daily Recap

President Joe Biden officially confirmed that cannabis is set to be rescheduled from a Schedule I to a Schedule III substance and that rescheduling will likely happen before the upcoming presidential election, per analysis by Bank of America.

This ‘tectonic shift’ in policy has been widely expected since April 30th, when the AP reported that sources within the DEA confirmed that they would support the move, with confirmation coming from the DOJ last week.

Comment Section

The DOJ says it is interested in receiving public comments on the “unique economic impacts” of its cannabis rescheduling proposal given that state-level legalization has created a “multibillion dollar industry” that stands to benefit from possible tax relief.

The Justice Department’s move to place canna in Schedule III of the CSA has already generated intense public interest and the 60-day public comment period that opens this week is expected to garner a wide-range of feedback from all sides.

Must See TV 📺 👀

A federal judge has granted cannabis companies’ request to allow public access to a hearing this week in a key case where they’re seeking to shield in-state canna activity from federal enforcement. Oral arguments begin Wednesday morning.

Attorneys for the plaintiffs argued the “dispute involves questions of public concern,” noting they’ve “received a number of requests from members of the press seeking to observe the hearing remotely because they’re unable to attend.”

Citi Habitats

Over the weekend, the New York City Sheriff's Office raided an illegal smoke shop on the Upper East Side as part of their ongoing crackdown on unauthorized smoke and cannabis outlets across the city's five boroughs.

During the initial week of enforcement, the Task Force, which includes members from the Sheriff’s Office, NYPD and New York City Department of Consumer and Worker Protection, sealed 75 locations and imposed fines totaling nearly $6 million.

Stocks & Stuff

It was a hollow session in more ways than one as U.S. canna stocks never opened—they trade in Canada, which was closed today—leaving the pink sheets and few other options to articulate a view. One of those vehicles—MSOS—finished 6% lower as traders continued to ‘sell the news.’

Below, we’ll chew through today’s price action, collect expert opinions on the timing of a final ruling for Schedule III, explore the why behind the recent stock sigh, check the relative performances of the U.S. canna sectors and update our weekly comps.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $158M/$105M

Top Stories