Talk to the Hand

Earnings arrive in Cannaland.

Daily Recap

As we patiently await word from the DEA regarding the next steps in the scheduling review process—and as Congress continues to work on SAFER Banking despite the multitude of agendas competing for their wallet mindshare—several prominent U.S multinational companies and organizations have been trying to lead by example.

Recent disclosures indicate that companies such as Amazon, Uber, American Express and the American Bar Association have been actively engaged in lobbying Congress on cannabis-related issues, including the SAFER Banking Act.

Hoos the Boss?

The Virginia House of Delegates and Senate approved identical versions of legislation to legalize retail cannabis sales, putting the reform one procedural step away from the governor’s desk.

Under the proposed legislation, retail sales could begin as of May 1, 2025, adults can score up to 2.5 oz. of marijuana at any one time and a state tax of 11.625% would apply to the retail sale of any cannabis product.

“This bill may not be perfect, but it’s pretty good; it’s a very, very good framework that I think the governor should consider.” -Sen. Barbara Favola (D)

Mr. Spicoli?

The California cannabis industry has a serious tax problem on our time.

The cash-strapped industry’s state tax bill has ballooned almost 15% from Dec. 2022, when the industry owed California tax authorities just over a quarter-billion dollars, to almost $300 million as of mid-February.

“The California cannabis industry has an outstanding balance of nearly $287 million.”

CUD FUD

A new study found that the legalization of cannabis is not associated with an increase in cannabis use disorders.

Contrary to the prevailing view that states legalizing cannabis experience an increase in cannabis use disorder cases, the recent study suggests that CUD actually decreased following legalization.

Stocks & Stuff

Cannaland was on the inside looking out today as the fast money chased coins and our space awaited earnings, which began with what looks like a tremendous quarter from GTI. U.S cannabis ETF MSOS finished close to where it started on light volume.

Below, we’ll chew through today’s fray, share what the industry-watchers are hearing, explore our catalyst dependent path, weigh the implications of Moscow Mitch, spy upside analyst revisions, channel check New Jersey, and dig deeper on Canada.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $71M ($40M)

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