Strange Days
A moment of truth approaches.
Daily Recap
Word on the street is that Sen. Mitch McConnell (R-KY) is determined to close the hemp regulatory loophole that he alone was responsible for creating.
While the government remains shut down, some intoxicating hemp operators have taken to social media to warn that Congress will soon attempt to close the loophole that allows hemp producers to create intoxicating products without being subject to the same rules or taxes as cannabis.
The massive growth and widespread adoption of THC have been largely obscured by the bifurcation between these two channels. As cannabinoids merge into a single regulatory framework, this industry, or those that emerge, will have the last smile.
The stakes are huge. A report this morning suggests the market is poised to grow to $138B over the next seven years at a compound annual growth rate (CAGR) of 26%.
Meanwhile…
Strange and significant things for the THC beverage sector are afoot at the Circle K.
The ubiquitous retailer plans to start selling hemp-derived THC beverages in as many as 3,000 stores nationwide sometime next year, company officials told MJBizDaily.
Circle K will be rolling out hemp THC beverages produced by Horticulture Co. and branded by former NBA star Allen Iverson in North Carolina, South Carolina, and Florida sometime in Q425.
“This partnership makes the brand one of the most accessible in the space overnight and boosts awareness of the category in one of the most trusted retail environments, all while reinforcing both brand credibility and consumer confidence. This is as close to a national rollout as the industry has seen and the largest by any chain retailer.”
Saf Sadiq, Horticulture’s CEO
L.A. Story
The legal cannabis market in Los Angeles is reaching a breaking point. At least two-thirds of the cannabis businesses in the county have failed to pay their local taxes, and the city is currently out hundreds of millions of dollars in lost revenue, per SF Gate.
More than 500 out of LA’s 738 cannabis companies currently owe outstanding taxes, which has forced the city to take the extreme step of proposing an amnesty program to help bail out the industry.
Stocks & Stuff
It was a green day on Wall Street and this time, Cannaland caught a bid. U.S. Cannabis ETF finished the session +5.5% (+23% YTD) as larger global operators, such as Village Farms (+3%) holding it’s YTD gains (+310%).
Below, we’ll top-line today, preview sector earnings, which begin next week, and take a deep dive into the latest regulatory rumors surrounding hemp, the potential impact on both sides of the current bifurcation, and the state-by-state hemp landscape.
All that and more, just scroll down.
note: there will be no Cannabis Confidential tomorrow.
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