Daily Recap
Vice President Kamala Harris posted a video to social media on Friday that cited the Biden administration’s moves to reform federal marijuana laws in an effort to appeal to young voters. There’s just one problem: her specific claim that cannabis policies have already been “changed” is blatantly premature.
“We changed federal marijuana policy, because nobody should have to go to jail just for smoking weed,” - VP Kamala Harris
Tiger by the Tail
February marks the first anniversary of legal cannabis sales for adult, non-medical use in Missouri and the state averaged nearly $4 million in cannabis sales per day—which equates to around $1.3 billion in cannabis sales over the course of the year.
Quaker Ridge
Pennsylvania’s governor said he thinks state officials “don’t even have a choice anymore” on legalizing cannabis and feels that there is enough bipartisan momentum for lawmakers to leverage to get the job done.
“This really comes down to an issue now of competitiveness,” as the state is currently “losing out on 250 million bucks a year in revenue that could go to anything from economic development, education, you name it.” -PA Gov. Josh Shapiro (D)
Clearing Customs
Canopy Growth told investors it was planning to file its definitive proxy statement around February 13th for Canopy USA, setting up a shareholder vote for April 12th.
Once successful, the company expects to proceed with its anticipated acquisition of Jetty, Wana, and Acreage.
Through the removal of Section 280, we expect value appreciation across our US assets, which would see a significant financial boost through reduced corporate income taxes, improved cash flows, and strengthened balance sheets.
Stocks Stuffed
U.S. cannabis stocks continued their recent retreat as investors’ Great Expectations remain unmet despite what appeared to be a victory lap by the Administration. U.S. cannabis ETF MSOS fell 8% to start the week but is still clinging to 26% YTD gains.
Below, we’ll talk through today’s price action, game theory the VEEP video, look at a few levels, chat on potential price objectives, channel check the math, refresh comps and otherwise just try to keep it real on our way from here to there.
All that and more, just scroll down.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $176M ($99M)
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