Rug Pull

Late day noise trips U.S. canna

Daily Recap

Many U.S. cannabis businesses would become profitable for the first time once the Biden administration follows through on their plan to reclassify marijuana as a less dangerous drug.

The change would lift IRC Section 280E, which currently bars U.S. cannabis businesses from claiming deductions on basic business expenses and creates an effective tax rate of more than 70%, wiping out most licensed marijuana retailers’ earnings.

“It’s an absolute game-changer. It’s something we’ve been waiting for, for the better part of 10 years.” Boris Jordan, Curaleaf Chairman

Veteran Move

Following an effort to attract more military veteran supporters of canna legalization, the campaign behind the Florida ballot measure to legalize adult-use marijuana is beginning to feature more veterans in their media outreach.

“Our goal is to raise awareness among voters about the importance of cannabis as a safer alternative to synthetic opioids for treating PTSD and related conditions among veterans” and we are “looking to engage with veterans across the state of Florida to support our cause.”

O-HIGH-O

Ohio medical marijuana patients purchased $54M in flower, vape oils, edibles and other products from state-licensed dispensaries in March. This is up from February, when there were $38M in sales; total sales are now ~$2 billion since program’s start.

Stocks & Stuff

Cannaland was a show about nothing for the better part of today’s session—MSOS was flat to the penny at 3:45PM—before a late-day tweet triggered a sell-off into the close. The ETF ended the day off 3% as the conversations continued after-hours.

Below, we’ll chew through today’s trading, outline the earnings calendar, update U.S canna comps, sniff at SAFE Banking and track sector valuations to see how much of the recent news has been priced in.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $139M/$92M

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