Hugs, Not Drugs

Its time to sunset a misplaced war.

Daily Recap

A United Nations expert is urging member nations to end the war on drugs and enact harm-reduction policies such as decriminalization, supervised consumption sites and widespread availability of overdose reversal drugs, while moving toward “alternative regulatory approaches” for controlled substances.

Among the UN report’s recommendations is that countries “decriminalize the use, possession, purchase and cultivation of drugs for personal use and move toward approaches that protect people’s health and human rights.”

Pacific Slights

California birthed some of the biggest global brands in the cannabis industry after the legal market launched in 2018, but it has also given rise to some of the most dramatic flameouts in recent memory.

The list of not-so-golden canna casualties has quickly piled up, with former marquee brands such as Flow Kana, MedMen, High Times, Herbl and Glass Door among those who’ve been impacted by the malaise during the last eighteen months alone.

Mass Holes

Massachusetts Gov. Maura Healy (D) said the state’s Cannabis Control Commission needs to move in a “different direction,” but she declined to say whether the agency tasked with overseeing the marijuana industry should be sent into receivership.

Modeled after the commission overseeing casinos, the agency has five commissioners appointed by the governor, attorney general and treasurer, but a review indicated an “urgent need” to authorize a receiver who can manage the day-to-day operations.

China Riders

An NPR investigation into clusters of farms in New Mexico found that the businesses employ, are managed and are largely funded by Chinese people. They are part of a new pipeline of migrants leaving China and making unauthorized border crossings in Mexico, with many are taking jobs at hundreds of illicit U.S. cannabis farms.

Stocks & Stuff

It seemed like old times in Cannaland as the slow, methodical grind lower persisted from bell-to-bell. U.S. cannabis ETF MSOS gave back 2% of yesterday’s gains and, as of now, remains nestled between two important technical levels.

Below, we’ll top-line today’s price action, get a line on the timing of rescheduling, see where canna ranks vs. other CPG categories, check the math on the multiples with and without our forward catalysts and otherwise try to keep it cool as the mercury rises.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $32M

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