Walking on the Moon

Canna bulls put the bears on notice.

Daily Recap

The first week of September is in the books and if it’s any indication of how the rest of this year might unfold for the until-recently-beleaguered U.S. cannabis complex, we best hold on to our hats.

As we spent a fair amount of time walking through the set-up last night and as I’m on my way to Jones Beach with my wife to enjoy ourselves some Sting, I’ll encourage you to click the link above if your canna-curious as to why a seismic shift is likely afoot.

Suffice to say reports of the U.S. canna sector’s demise have been greatly exaggerated.

That’s not to say the industry wasn’t in trouble—it was, and will continue to be until these onerous conditions subside—but amazing things are possible when you’re not paying an effective tax-rate of 70+% (what was/is as a Schedule I narcotic under 280E).

That inflection warrants a 2-3x turn on math alone—if and when it is codified by the DOJ—but as you know, if you’ve been reading this space of late, it’s the structural set-up, short-base and animal spirits that are spicing up the September price action.

IDK if we get our full-on wish list—there’s a healthy debate/ skepticism surrounding everything from The Single Convention on Narcotic Drugs to the appetite/ ability to pass SAFE through the House to underlying fundamentals themselves—so, we’ll see.

Below, we’ll dig deeper on the people, places and things shaping the U.S. canna space, sniff at the short interest and what it means, discuss why all cap raises aren’t created equal, chew through some portfolio construction, name names as it pertains to some of the best operators—and people—and try to unpack that wild last hour of trading.

In other news, Maryland cannabis sales cracked $420M for the year, which is nice; NJ regulators announced new marijuana delivery and wholesaler and distributor licenses, with social equity businesses first in line to apply; Maine’s adult-use canna industry is in full bloom as sales continue to break records with August alone topping $21M; the New York Senate Marijuana Committee scheduled a hearing to address challengers of their failed legalization rollout; Alabama marijuana regulators will begin negotiations with legal challengers over the licensing process; the California senate approved a bill to legalize marijuana cafes; and a German poll found 71% support legalizing cannabis.

All that, and more, just scroll down…

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $282M

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