Daily Recap
For decades, Republican politicians wrinkled their noses at cannabis but that was a long time ago. The current resident at 1600 Pennsylvania Avenue isn’t cut from the same cloth and has positioned himself for one of the all-time great political steals.
President Donald Trump is considering moving cannabis to Schedule III, which would ease restrictions on it but stop short of making pot entirely legal.
The Free Press reports that a decision could be made as soon as this month and is likely by the end of this year, according to people familiar with the matter.
Bud is Wiser
Americans are still cracking open cold ones, but what’s inside their cans is changing.
More people are reaching for cannabis beverages, nonalcoholic drinks infused with THC and in many cases CBD, a cannabis compound that helps relieve pain, anxiety, and other health symptoms.
Consumer demand for this category is growing as Americans drink less booze. Per a July Gallup survey, the percentage of U.S. adults who say they consume alcohol fell to 54%, the lowest level since 1939, when they first began tracking consumer behavior.
“There’s a replacement factor going on between THC beverages and wine and beer and distilled spirits.” Beau Whitney, chief economist at Whitney Economics
The Answer
Allen Iverson has entered the THC beverage chat. Iverson launched IVERSON, a craft THC soda, in partnership with Horticulture Co., a leading innovator in plant-based wellness products.
IVERSON will be available beginning on October 20th at Specs, Total Wine, and Circle K locations nationwide, and online at drinkviola.com.
“Allen and Viola have always been about breaking barriers and leading culture and partnering with Horticulture allows us to take that same mission nationwide, creating a product that brings wellness and community together in a new way.”
Al Harrington, CEO and Founder of Viola.
Shortstop
Ohio stores can temporarily resume to selling intoxicating hemp products—for now.
Franklin County Judge Carl Aveni granted a 14-day temporary restraining order on Gov. Mike DeWine’s EO banning the sale of intoxicating hemp products on Oct. 14, with the next hearing in this case is scheduled for Oct. 28.
Stocks & Stuff
It was another volatile session, both for the broader markets, where early strength led to a late-day fade, and Cannaland, where the animal spirits are battling the algos into expiration.
Yesterday, the animal spirits won; today, the algos returned served and round-tripped the U.S. cannabis ETF back to the $5 strike price (-7%; +32% YTD) on 2/3 the volume.
Below, we’ll top-line today’s price action and impact, spy two fresh 52-week highs in the underlyings, and channel check working capital and same store sales across the U.S. landscape landscape.
All that and more, just scroll down.
note: there will be no Cannabis Confidential tmrw; enjoy your weekend!
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $95M
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