The Florida Keys
The Sunshine State comes into focus.
Daily Recap
As the election approaches, a new series of polls shows widespread majority support for cannabis legalization, federal rescheduling and banking access among likely voters in three key presidential battleground states: Michigan, Pennsylvania and Wisconsin.
The results also come as observers await a formal statement from the Republican nominee, former President Donald Trump, about where he stands on a recreational legalization measure that’ll be on the ballot in Florida, where he’s a resident.
No Smoke Radio
Gov. Ron DeSantis (R) has stated that one of the main reasons why Floridians should reject a measure adult-use recreational cannabis for adults in November is that the smell of people smoking will make the state a less enjoyable place to live or visit.
To combat that concern, Sarasota Republican state Sen. Joe Gruters, who has already endorsed the ballot initiative, said Thursday that he’ll introduce legislation next year that bans smoking in all public places in Florida.
“Let’s follow the Arizona law and ban smoking in all public places. I think this is easy to do, this is well within our authority, and I think that we need to get ahead of this.”
Concrete Jungle Wet Dream Tomato 🎶
The New York State Cannabis Control Board approved 86 adult-use cannabis licenses this month. 53% of those are held by social and economic equity licensees, 22 (13%) are women-owned businesses and 18 (10%) are minority-owned businesses.
The state has now issued 841 adult-use cannabis licenses in 2024 and as of August, there are 156 dispensaries open for business across New York state.
Peachy
The number of Georgians obtaining a state-issued card to buy medical marijuana is rapidly climbing by about 1,000 per month and coming changes may make it easier for new patients.
Georgians can access MMJ for a wide variety of conditions including end-stage cancer, Crohn’s disease, Parkinson’s disease, autism, AIDS, PTSD and intractable pain.
Stocks & Stuff
The stock market enjoyed one of it’s best weeks in years and cannabis tried to keep pace. U.S. cannabis ETF MSOS 0.00%↑ finished the day +2.5% and +7% for the week.
Below, we’ll top-line the recent action, recap the rest of earnings, sniff at the quarterly ETF changes, check on da butcher, explore why Kamala has been so quiet on the issue and highlight a California operator that’s keeping close tabs on the hemp loophole.
All that and more, just scroll down.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $60M
Top Stories
Florida Bill Would Ban Public Smoking If Voters Approve Cannabis Legalization
Georgia’s medical marijuana program growing fast and getting easier access
Most New York Patients, Providers Say Cannabis Helps Reduce Opioid Use
Dallas Lawmakers Officially Put Marijuana Decriminalization On Ballot
New York State has Issued 841 Adult-Use Cannabis Licenses this year
Implications of Cannabis Legalization for the US Federal Budget
US alerts hemp sector to new Chinese CBD regulations
Norway's Green Party proposes legalisation of cannabis
Ukraine's legalization of medical cannabis enters into force 👇
Industry Headlines
Canopy Growth CEO to step down
Rubicon Organics Earnings + Call Notes
C21 Investments Reports First Quarter Results
Trulieve to Open 143rd Medical Cannabis Dispensary in Florida
4Front Ventures dials in private label strategy for Illinois expansion
Marijuana MSOs set up high-risk fight with IRS over 280E of tax code
CNBC’s Tim Seymour takes ‘glass half full’ view of Q2 cannabis earnings
Rentals and Storage
The funds below were the biggest quarterly changes in the MSOS 0.00%↑ ETF.
RE: the Eminence redemption, third from top on the right☝️
Where the Hell is Beeks?
It’s been over a month since Joe Biden stepped aside and Kamala Harris elevated to the top of the ticket and I don’t know about you but I expected to hear more about cannabis since she’s been pro-canna legalization for some time.
While the issue is stirring behind the scenes—Kamala nabbed a pro-pot Tim Walz as her running mate and perhaps more notable, we saw potentially positive posturing from the former President—the silence has been deafening on the national stage.
One possible reason for the radio silence from the left is that it would be difficult to stump on “finishing the job” until they’ve actually completed the first phase. We know where she stands, we think, so perhaps her quietude is a function of sequencing.
I get it ofc, but she’s left an important political plank exposed if President Trump is paying attention—and given the debate advisor he pulled in today, he likely will be.
The Democratic National Convention starts on Monday so there’s that, too.
We spoke earlier this week about the sloppy rebalancing by the smaller MJUS 0.00%↑ETF. They’ve been in motion since last Friday and have certainly left a mark.
We’ve taken the other side of this flow before: we cleaned them up on a seven-figure print of 4Front last August around the same price it is now—before it 5X in a month.
We asked a broker to size up what MJUS left in a name yesterday; what we got back:
"MJUS won't talk to us anymore, since Amplify took it over, I continue to hit the guys that are managing it but they don't pick me up."
It’s one thing to not have liquidity; its another to not want it.
Chart of the Day
Glass House Farms is trying to kiss the Spring highs following earnings and ahead of a possible entrance to hemp, depending on how the Farm Bill lands. Nice to have that optionality, not everybody does.
Random Thought
After last week’s flash crash, year-end performance anxiety could feed on itself in the broader markets, particularly in an election year. if/ then, 2025 would be dicey af for risk assets no matter who sits in the Oval.
Stems & Seeds
Cannabinoid Spotlight: CBN as a sleep aid
Nevada Takes Step To Stop Penalizing Boxers And MMA Fighters Over Marijuana
Housekeeping
We paused payments for Cannabis Confidential for the last two months and kept ‘em paused, even after Stripe realized that they made a mistake. During that time, I wrote when there was actually something to say rather than forcing out a daily note.
As we turn to Autumn, payments will be turned back on—with a twist. I plan to write at the current pace—when there’s news, likely several times per week—on top of the quarterly earnings recaps and longer-form thought pieces.
Given the current environment and proclivity of consumers to trade-down, the cost of Cannabis Confidential has been reduced by 33% to $5.99/mo, or $59.99/year, effective immediately. As always, I appreciate and thank you for your continued support.
Have a safe journey and please enjoy responsibly.
If you’d like to help Mission [Green] change federal cannabis policies, please click here.
CB1 has positions in / advises some of the companies mentioned and nothing contained herein should be considered advice.