The Mudville Grind

The messy stress continues for U.S. canna.

Daily Recap

A fresh bout of PTSD began to trigger for cannabis industry participants when Rep. Mike Johnson (D-LA) ascended to the House Speakership last week but a new lawsuit detailed a different potential path out of the longstanding political gridlock.

David Boies, the lawyer best known for his high-profile cases that have involved U.S. elections, Microsoft, Harvey Weinstein and Theranos, has a new high-profile client: the cannabis industry, and Mr. Boies began working on the case over a year ago.

“It seemed like an important states’ rights and constitutional question, a civil-rights and individual-liberty question,” he said of his rationale for taking up the challenge, “and we knew people for whom access to legal medical marijuana was vital to their well-being.”

The lawsuit would effectively address the ability to access banking services + implies the removal of the punitive 280E taxation structure on a state and federal basis. The lawsuit also adds the potential to recover the 280E taxes that were paid in the past.

State of Play

The Kansas City, Missouri City Council voted to use $500,000 in cannabis revenue to fund housing for people during the cold weather; the Ohio governor attacked the MJ legalization ballot measure, downplaying polls showing broad voter support; medical cannabis pioneers in Georgia are prepping for the deep south’s first pharma sales; the Alabama medical cannabis licensing process reset, with all 90 applicants again in play; a Missouri lawmaker called for an investigation into potentially fraudulent activities in their cannabis program; and businesses allege corruption, backroom deals and local political strong-arming ran rampant throughout New Jersey’s legal weed rollout.

Markets

It was another sloppy session for U.S. canna stocks as sellers emerged out of the gate to again press the space. After early ugliness almost erased the rest of the post-HHS rally, we spent the rest of the session probing the durability of the double bottom.

After a few day of asking, ‘what did we miss?,’ we finally heard of a potential reason for the recent price action that has nothing to do with the new Speaker. We’ll dig into all of that below, along with some bond color, our updated weekly comps and a few views on the latest lawsuit.

All you have to do is scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $86M

Top Stories