Swing States Cometh

Ohio & Florida eyeball U.S. cannabis.

Daily Recap

Ohioans head to the polls tomorrow to cast their ballots on adult-use canna, which’ll mark the culmination of an intensive campaign to put legalization before voters. If the proposal passes, as it should, Ohio would be the 24th state to do the right thing.

Legal cannabis in Ohio—with ~12M people, it’s the seventh-most-populous state—would provide a boost to existing MMJ businesses, who are well-positioned to serve an adult-use market that’ll be worth ~$4B within a few years, per MJBizDaily.

Florida AG Ashley Moody, who is asking the Florida Supreme Court to nullify efforts that obtained more than one million signatures to put the issue of adult-use cannabis to voters in the 2024 general election, will present her salty and sad argument to the state's highest court this Wednesday. Reminds me of this great book…

And Wisconsin stands to generate nearly $170M annually in tax revenue under an adult-use marijuana legalization bill that was introduced by a top Senate Democrat, according to state officials. The Badger State is, of course, surrounded by Michigan, Minnesota and Illinois, all of which have adult-use legal frameworks in place.

PotPourri

Hemp plastic is 100% biodegradable and is a better alternative to synthetic plastic; Germany is prepping for their marijuana legalization roll-out; studies suggest daily canna use is linked to a higher risk of severe heart disease; the lawmaker behind the amendments to end cannabis testing for federal job applicants explains why he keeps fighting amid GOP opposition; and new FDA documents look back on 50 years of MJ research while previewing future studies on terpenes and edibles.

Markets

While this week will be all sorts of busy—Ohio, Florida, Virginia + Verano, Village Farms, Green Thumb, Trulieve, Curaleaf earnings—it’s the news that we don’t know—timing of the DEA, fate of SAFE, depth of the Garland Memo—that’ll most influence our year-end path.

Still, this week started with solid news as Organigram announced a large investment from British American Tobacco and the creation of a strategic investment pool.

We’ll dig into the details of that partnership and explore the readthroughs + reactions from the street, below. We’ll also take the temperature of the credit markets + spy the duration risk across 2024, and finger the Florida opportunity ahead of oral arguments.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $37M

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