War of Attrition

U.S. canna tries to plant it's flag.

Daily Recap

When cannabis legalization first started gaining momentum in the United States, it was heralded as a step toward criminal justice reform, economic growth, and public health benefits. Advocates promised that legal cannabis would eliminate the illicit market, generate massive tax revenues, and ensure a safe, well-regulated industry.

That’s not exactly how things turned out 👇

"Illegal shops have severely undercut the legal market. They sell the same products at a fraction of the price, with no oversight—evading taxes, flouting safety regulations, and often offering high-potency THC products to minors."

The fix, of course, is federal reform, but President Trump’s picks thus far in his first 57 days in office, including appointments to lead the federal drug and health agencies, have sowed doubts that cannabis’ status under federal law will change anytime soon.

That’s the gloomy vibe weighing on the sector as the cannabis rescheduling process—which started in October 2022 by former President Joe Biden before being put on ice in January—remains stuck in limbo and we’ve yet to hear an update from the Oval.

Veteran Affairs 🫡

An estimated 40% of veterans suffering from chronic pain consume cannabis to mitigate their symptoms, according to survey data published in the journal Global Advances in Integrative Medicine and Health.

The authors of the study suspect under-reporting because cannabis is discouraged by the VA but those who answered said they use canna to manage pain/mobility (81%), help with sleep (62%), for PTSD and anxiety (43%), stress (43%), and depression (29%).

But keep cannabis Schedule I and ignore the needs of our greatest American heroes.

Red Hot

The hottest market for weed is a Republican stronghold in the middle of the country.

Missouri is now the seventh-largest state for weed sales since it legalized adult-use cannabis in 2022, putting it ahead of such places as Arizona and Washington, which have bigger populations and older markets.

The industry credits its success in the conservative state to low taxes, its role in how it helped shape regulations and proximity to states where recreational pot isn't legal.

Blue Grass

After medical cannabis was officially legalized in Kentucky on January 01, 2025, preparations among would-be operators are close to being finalized.

A local news publication spoke with the Executive Director of the state’s medical cannabis program, who said that the state should issue final approvals to growers within the next two months.

“I certainly hope that we will have cannabis available at least in some parts of the state by the end of the year.”

Stocks & Stuff

The quiet riot continues as cannabis muddles through the first quarter without a line of sight on federal reform. U.S. cannabis ETF MSOS finished the session +2.5% but remains -27% YTD as the rest of the market vacillates.

Below, we’ll offer an honest take on the current condition, spy the silver growth lining, see why the $2 billion dollar Pepsi deal has a readthrough to canna, and bottom line current valuations as we sift through the status quo.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $5M 👀

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