Daily Recap
As U.S politicians ready for the 2024 elections, the growing support for cannabis may create an opportunity for the Democrats, who are traditionally more liberal on drug laws, to tap support for legalization among a coalition of voters that extends beyond their typical base.
Much like abortion, voting patterns suggest the Democratic party’s cannabis stance appeals to a broader range of the electorate than their actual candidates do, has the potential to drive higher voter turnout, and could help reshape the electoral map.
Apple Pie
New York cannabis regulators have finally approved settlement agreements that could soon allow the hundreds of cannabis businesses that have been blocked from opening amid litigation to finally begin operations. The agreements must still be accepted by the state Supreme Court before the injunction is lifted but we expect MSO wholesale channels to be open within the next few weeks.
Pass the Schnitzel!
German lawmakers have reached an agreement to revise a marijuana legalization bill, relaxing certain provisions that were challenged by cannabis reform supporters and setting the stage for a final vote in the national parliament next week.
The regulations for possession and cultivation for individuals are scheduled to begin on March 1, 2024, and cultivation clubs would start this summer. The government plans to pilot the sale of legal weed through licensed shops in a later phase.
"We are putting an end to the harmful prohibition of cannabis," said Kirsten Kappert-Gonther, the chair of the Health Committee in the Bundestag. She described the planned law as a "paradigm shift that many people have been campaigning for for decades."
Death & Taxes
Congressman Earl Blumenauer (D-OR), a longtime champion of America’s adult-use cannabis industry, is trying to retire on a high note with bipartisan legislation that would level the playing field and rectify the financial burdens of IRC 280E.
“The Small Business Tax Equity Act is a pivotal change. It seeks to amend Section 280E, enabling vital deductions and alleviating the undue burden that has stifled growth and innovation."
Traynor Wheels
The receiver in charge of failed Canadian hedge fund Traynor Ridge Capital Inc. is looking to hire an investment advisor to help sell its assets. Ernst & Young posted a notice Thursday calling for investment firms to apply for the job by Nov. 30 with “a high level strategy and work plan for the disposition” of Traynor’s securities.
Markets
With earnings behind us and year-end ahead, the combination of news flow, technical levels and animal spirits will determine the final 2023 fortunes for U.S. cannabis.
Below, we’ll chew through today’s price action, digest some hints and allegations, take stock of the latest comps, do some digging on Florida and sniff at a half-step to uplist.
All that and more, just scroll down.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $40M
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