Shine Box

U.S. canna wants your respect.

Daily Recap

Two-thirds of voters believe President Biden should accept the HHS recommendation to reschedule cannabis to Schedule III. A whopping 84% of 18-25 year-old voters said the President should accept the recommendation while 13% said he should just say no.

70% of U.S. citizens believe weed should be legal, a record high according to the most recent Gallup poll, which means 30% of this country remains dazed and confused.

Substitute Creature

More than a half dozen U.S. states where marijuana is legal notched record-breaking monthly sales in December, with many new adult-use cannabis markets continuing to expand after American shoppers stepped up their holiday spending.

TD Cowen recently projected legal cannabis sales will reach $37 billion in 2027, up from ~$29 billion in 2023, with at least some of that growth expected to come from increased substitution of cannabis for alcohol, particularly among younger adults.

Why the Long Face?

If you’re new to these parts 1. lucky you and 2. you’ve walked into a unique situation as U.S. cannabis stocks currently can’t be custodied by most U.S. banks and the only NYSE-listed + scaled pipe into the space is the MSOS ETF [CB1 Capital is an advisor].

This is important because if/ as our catalysts arrive, there will likely be a months-long lag until U.S. banks remove the MRB restrictions that’ll allow for the plumbing that’ll facilitate sticky liquidity that’ll get these U.S. pioneers the cap tables they deserve.

The forecast calls for further volatility as our space migrates to an even playing field, complete with capital market access, normalized tax rates and real exchanges. From here to there, we’ll need to horse around so please click here 👇 to better understand

Stocks & Stuff

It was a show about nothing for the better part of today as Cannaland digested the recent run—MSOS is +50% since late Dec.—until power hour arrived and the bovine got busy. The ETF finished the day +3% on $98M notional volume ($53M via ETF).

Below, we’ll chew through today’s dew, check charts across horizons, kick the shoes of a few analysts and otherwise ready ourselves for Freaky Friday after a reflective day.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $98M ($53M)

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