The Hunger Games

The Industry turns to eat their own.

Daily Recap

The Internal Revenue Service is warning the marijuana industry that some companies have, without a “reasonable basis,” filled out a supplementary form in an attempt to take federal tax deductions they’re prohibited from receiving under IRC 280E.

That form is “used by taxpayers and tax return preparers to disclose items or positions except those taken contrary to a regulation, that are not otherwise correctly disclosed on a tax return in order to avoid certain penalties,” the three-letter bureaucracy said.

Them Apples

Massachusetts adult-use marijuana sales have officially exceeded $7B since the state’s legal market launched in 2018, regulators announced, and $1B of that happened in just seven months—marking a state record.

The state reached the $7B mark on November 19, eight days before the cannabis holiday known as Green Wednesday, which saw nearly $8M in cannabis purchases alone. Massachusetts adult-use sales hit the $6B mark on April 17 of this year.

Jets, Giants and Cannabis

Legal woes are disrupting New York’s adult-use cannabis program again after a state judge on Thursday agreed to temporarily stop state regulators from processing thousands of pending business applications.

An Albany County Supreme Court Judge granted a temporary restraining order that bars the state’s OCM from processing certain social equity applications as well as “any other provisional applications” received last year.

Husker Crust

The Nebraska Supreme Court has decided to expedite the appeal of a lawsuit seeking to invalidate the state’s incoming medical cannabis laws, which will take effect within the next day.

District Judge Susan Strong ruled there was not enough evidence of alleged circulator fraud or notary malfeasance in the case, upholding the placement of the measures on the ballot. The Supreme Court will set a deadline for briefs and for oral arguments.

Stocks & Stuff

It was another tense session in Cannaland as sentiment seethed and fingers pointed. U.S. canna ETF MSOS ended the session +4%, but still lost 8% for the week.

Below, we’ll top-line the latest drama, seek the comfort of calmer heads, and chew through some truth into the weekend.

All that and more, just scroll down.

I’ll be offline Dec. 20th through New Year’s. Healthy & safe holidays to you and yours

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $36M

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