Daily Recap
A cannabis industry-funded political action committee is attacking former President Joe Biden’s cannabis record as well as the nation of Canada, with new ads promoting (what some) consider misleading claims about the last administration while making the case that President Donald Trump can deliver on reform.
The ads sharply criticize the president’s predecessor and emphasize that American cannabis businesses are losing out to Canada, a more recent target of Trump’s ire, because of prohibitionist U.S. laws. See the first of the two ads below 👇
Jed Head
Two Tennessee bills that would address hemp and cannabis went before legislative committees today, with each having different objectives.
The "Pot for Potholes" bill sponsored by Nashville Dems would legalize adult-use cannabis and place a 15% tax on sales.
“This legislation invests in safer roads, creates jobs, and delivers new revenue for counties across Tennessee. It’s time to get this done.” Sen. Heidi Campbell (D)
At least one Republican senator agrees that the issue must be addressed.
"We are absolutely just kicking the can down the road. It's coming, whether it's this year, next year, five years from now." Sen. Adam Lowe (R)
Only two of Tennessee's neighbors, Missouri and Virginia, are currently legal for adult-use—although VA. Gov Glenn Youngkin is doing his best to poison his people—so it remains to be seen if The Volunteer State will move forward this session.
Republicans also introduced a bill that would ban the sale of hemp products at grocery and convenience stores and reverse a law passed in 2023 that allowed a 0.3% legal limit of THCa concentration by prohibiting the manufacturing, production and sales of hemp or hemp plant parts that exceed 0.10% of THCa concentration.
No Laffing Matter
What does it take to persuade a progressive to cut tax rates? Make sure the tax cut applies to the “cannabis industry,” or that’s what Dems in Sacramento found out as high tax rates harm the legal version of their favorite recreational drug.
This delightful discovery of the marijuana Laffer Curve comes from Assemblyman Matt Haney of San Francisco, who unveiled legislation to prevent a looming tax increase on legal cannabis in California.
“If you keep on taxing and taxing a set of businesses that are already competing with folks who are paying no taxes, eventually those folks are going to go out of business entirely, and you’re not going to get anything.”
Stocks & Stuff
U.S. cannabis ETF MSOS was down 5% in early trading—Cresco, lost as much as 30%—as what appears to be quarter-end related activities collided with vapor-thin markets.
The ETF finished flat—and Cresco ended the day 2% higher—as the FUBAR continues.
Below, we’ll update happenings on the animus front, spy Canadian price stabilization, dig deeper into Glass House, and review the rate, pace and composition of cap raises in the space.
All that and more, just scroll down.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $10M
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