Safety First

U.S. canna tries to avoid Vapegate 2.0.

Daily Recap

Under state-imposed regulations governing adult-use and medical cannabis markets, products are from licensed manufacturers at state-licensed retail stores.

Cannabis is cultivated, and products are manufactured, in accordance with good manufacturing practices. Products are lab tested and labeled accordingly, ensuring that consumers have access to products of verified purity and potency.

Further, jurisdictions that have legalized cannabis markets see declines in the use of both synthetically produced and unregulated hemp-derived cannabis products.

“By taking cannabis products off street corners and placing them behind the counter, lawmakers are providing cannabis consumers with safer experiences.”

Paging Sara Conner Carter

Federal authorities allege that an underground banking network bought dollars at a discount from Mexico's Sinaloa drug cartel and sold them at a premium to Chinese nationals in the U.S.

The network allegedly handled ~$50 million in proceeds from drug trafficking over four years, depositing the tainted cash at teller windows and ATMs at major banks in cities around Los Angeles County.

Similar schemes operate in plain sight throughout the U.S., laundering staggering sums of money for cross-border cartels that smuggle fentanyl, methamphetamine, cocaine, and other illicit drugs consumed by millions of Americans.

More than 80,000 people in the U.S. died from drug overdoses last year.

Department of Sanitation

New rules included in last year’s New York state budget allowed the city to padlock unlicensed cannabis shops for up to a year—and nearly 1,400 have been shuttered.

Since May 2024, its enforcement operation has seized more than $95 million worth of illegal products, City Hall said in a release.

“The city was fed up. We heard it at every town hall. We heard it in every area — we wanted something done about those illegal cannabis shops. It was attracting violence; it was attracting terrible products.” Mayor Eric Adams

It’s Everywhere…

Stocks & Stuff

It was a tame day across Wall Street as the world turns and a new world order takes shape. It was similarly serene in Cannaland until a late-day pop aroused attention, prompting messages and texts from traders I haven’t heard from for a while.

U.S. cannabis ETF MSOS finished the session +4.5% and is now only -26% YTD.

Below, we’ll top-line the week, hear from one of Canada’s rising stars, dial into the Ohio adult-use ramp, take a stab at the forthcoming federal sequence, name a few well-positioned names to potentially own, and keep it real by staying grateful.

All that and more, just scroll down.

note: there will be no Cannabis Confidential tomorrow; enjoy the weekend.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $16M

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