The Enemy Within

Cartels, crime rings and U.S. cannabis.

Daily Recap

An investigation by Daily Caller News uncovered that several individuals accused of operating an illicit cannabis farm in Maine have significant connections to a Chinese Communist organization involved in intelligence and foreign influence operations.

According to reports, illegal marijuana operations run by Chinese nationals have been discovered in repurposed homes, former schools, mills, recycling centers, and other industrial sites across the state.

Police raids resulted in the seizure of hundreds of pounds of marijuana and thousands of cannabis plants at single sites, with some busts also revealing methamphetamine or banned fumigants.

This isn’t the first time that these criminal organizations have been exposed but what makes this article and investigation notable was that it was written and conducted by the incoming US Drug Czar, who’ll be in a position to tackle these terrorists head on.

House Rules

Just one day after Pennsylvania Democrats filed a much-anticipated bill to legalize cannabis with a novel model of state-run stores, a House committee approved the measure—with floor consideration now expected imminently in the face of criticism about how fast the proposal is advancing.

The measure will move to the House floor, where an initial vote is expected as soon as Tuesday—but would still have to pass the Senate, where enthusiasm for the state-run model is decidedly lacking. Gov. Josh Shapiro wants this but only time will tell if there will be a meeting of the minds that’ll allow him to deliver on behalf of his constituents.

Take a Hike

California’s beleaguered pot industry was given more bad news late last week as the state cannabis tax rate will increase from 15% to 19% on July 1, which is the highest hike allowed by state law.

“More businesses will close sooner as the legal price is just too far away from illegally obtained products. Less investment in starting or continuing cannabis operations will occur, and demand for cannabis licenses will decline exponentially.”

We tried to contact Glass House President and Grand Sherpa Graham Farrar to ask his thoughts on the matter but he was evidently busy navigating the California landscape.

Mississippi Yearning

The Supreme Court declined to take up a challenge to Mississippi’s near-total ban on the advertising of medical cannabis. Mississippi voters overwhelmingly approved MMJ in 2020, but the state tightly controls how the product can be promoted.

The owner of a cannabis dispensary argued that violates his free speech rights.

Stocks & Stuff

The broader market continued to digest how transitory the tariff tussle will be, as the promise of “deal frameworks” is in a race against the unintended consequences, be it particularly light cargo ships, an impact on tourism or any number of other concerns.

The S&P, NASDAQ and the dollar, after grinding back the early April losses, struggled at their respective resistance zones today as U.S. cannabis, as measured by the MSOS ETF, lost (checks notes) a penny.

Below, we’ll top-line the space heading into the Q1 earnings, weigh what was, what is and what will be in the second half of the year, hear from Sugar Shane regarding next steps for rescheduling, and explore why the perception of canna as an exit drug might gain steam within this administration.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $18M

Top Stories