Weekend Update
Reviewing the cannabis landscape.
The following is a sampling of Cannabis Confidential content—random paragraph grabs, charts and notes, interesting happenings and other stuff— from last week.
You can click the title to access any article; most stock stuff and analysis is behind the paywall and you can access a free trial by clicking below; thanks for your support.
Trump Calls on Cannabis 👈
GOP nominee leans into debate.
Sept. 9, 2024
Former President Donald Trump said he supports federally rescheduling cannabis and opening up access to banking services for businesses in the cannabis industry. He is also reiterating his support for the legalization initiative on Florida’s November ballot.
“As I’ve previously stated, I believe it is time to end needless arrests and incarcerations of adults for small amounts of marijuana for personal use. We must also implement smart regulations, while providing access for adults, to safe, tested product.
As a Floridian, I will be voting YES on Amendment 3 this November.
As President, we will continue to focus on research to unlock the medical uses of marijuana to a Schedule 3 drug, and work with Congress to pass common sense laws, including safe banking for state authorized companies, and supporting states rights to pass marijuana laws, like in Florida, that work so well for their citizens.”
Donald Trump, 9/8/24
Serve and Volley
Federal cannabis pardon recipient Chris Goldstein, in an Op-Ed for Marijuana Moment, wrote that, after three trips to the White House to spend time with V.P. Kamala Harris, he’s “borne witness to a time of profound change,” which “cemented a new optimism” within him surrounding federal cannabis reform.
“Harris fully supports national cannabis legalization, and she’s been instrumental in the first presidential administration to work directly on marijuana reform. This is a huge leap forward for the country.”
The Democratic Presidential nominee, who reportedly supported decriminalization behind closed doors back in March, has been silent on the issue since she’s been at the top of the ticket. In fact, Harris omitted the issue entirely in a new, long-awaited issues page launched by the campaign today.
Hold ‘em
A strong bipartisan majority of Texas voters support decriminalizing marijuana, and more people say they want to reduce restrictions on cannabis than say the same about guns, gambling and abortion in the Lone Star state, according to a new poll.
Asked whether the penalty for possession or use of cannabis should be reduced to a citation and fine, 68% said they support that proposal, including 42% who said they “strongly” favor it. A majority of Dems (81%), Republicans (59%) and independents (61%) all expressed support for the reform.
Teenage Case Land
A new study found that cannabis use has been increasing in the United States, but not among teenagers. The research, which looked at data on more than 500,000 people’s cannabis habits, also revealed that cannabis use had increased among Americans in households earning more than $75,000 a year, as well as those with a college degree.
This is an actual political ad currently running in Texas. I think I may love her.
Debate Able
Cannaland will be tuned in.
Sept. 10, 2024
Vice President Kamala Harris’s campaign is accusing former President Donald Trump of lying about his support for marijuana reform, arguing that his “blatant pandering” runs counter to his administration’s record on cannabis.
“As president, Trump cracked down on nonviolent marijuana offenses—undermining state legalization laws, opposed safe banking legislation, and he even tried to remove protections for medical marijuana,” a spokesperson told NBC News.
While the Harris campaign seems willing to call out Trump on his marijuana platform, it’s been notably silent on the 2024 Democratic nominee’s own position, even though she has privately reaffirmed her support for legalization.
Big Earl
Congressman Earl Blumenauer (D-OR) responded to Donald Trump's endorsement of cannabis rescheduling and Florida’s Amendment 3, which aims to legalize adult-use cannabis in the state. He noted that Trump's support for cannabis reform "should be a powerful signal to the rest of the GOP when even Donald Trump can get on board."
Beer Goggles
A major alcohol trade association is applauding California Gov. Gavin Newsom’s newly proposed emergency regulations to outlaw intoxicating hemp-derived cannabinoids and require all CBD products be completely free of THC.
“The Beer Institute thanks Gov. Newsom for his leadership in closing an unintended loophole that’s enabled the proliferation of unregulated intoxicating hemp products. These products are being sold as food and beverages despite not being deemed safe by federal regulators, and in some cases without age restrictions.” Brian Crawford
Surge of Sunshine
A new poll reflects that the Florida marijuana legalization initiative on the November ballot has enough support to pass, exceeding 60% threshold to enact a constitutional amendment under state law.
The Emerson College survey found that 64% of likely voters back the measure, while 27% are opposed and the rest undecided. Notably, the support is from both sides of the aisle—in addition to Donald Trump, the Florida Senate Democratic Caucus and the Florida Young Republicans have both announced their support for the measure.
Brokedown Palace
Reflections on the 23nd anniversary of 9/11.
Sept. 11, 2024 #NeverForget
Cotton Mouth
Mums the word at the debate.
Sept. 11, 2024
Despite not grasping even 15 seconds of fame at the first second presidential debate, candidates can no longer afford to sit on the sidelines of federal canna reform as both campaigns have a unique opportunity.
How? By advocating for rescheduling, criminal justice reform, healthcare reform, bank reform, access to capital markets and the normalization of a product that many states already consider legal.
“The party that fails to engage on this issue risks not only losing the election but also alienating the next generation of voters. History will prove this election is the turning point for many issues facing federal cannabis reform.” Jason Vedadi, Story Cannabis
Five Year Plan
As Kamala Harris faces criticism from cannabis reform advocates about her silence on marijuana policy issues since becoming the Democratic nominee, a resurfaced ACLU candidate questionnaire from 2019 shows she previously backed broader reform and specifically, full federal decriminalization of drug possession.
“As president, I would continue to seriously reform this system and change policies that led to mass incarceration. To help end the era of mass incarceration, I will legalize marijuana, further reform federal sentencing laws, make the reforms included in the FIRST Step Act retroactive…” VP Kamala Harris, a while back.
Laboratories of Democracy
Many states have already loosened their policies toward cannabis and other drugs via ballot measures, and this year will see a handful of additional proposals.
Five states — Arkansas, Florida, Nebraska, North Dakota and South Dakota — will vote on whether to legalize marijuana or further loosen restrictions on the drug.
“With regard to cannabis reform, the ballot initiative process was instrumental in turning popular opinion into public policy,” said Schweich, of the Marijuana Policy Project, who thinks that there’s a good chance all five of those measures will pass.
Canna Co’s File Opening Appellate Brief to Challenge Federal Prohibition 👇
Viridian on U.S. cannabis
We continue to believe that U.S. MSOs have enormous upside potential. The graph shows the multiples reached after a number of past legislative/ regulatory events. It makes clear that a doubling of prices is a reasonable assumption.
Farming with a Fowl Limp?
Hemp could find clarity in the lame duck.
Sept. 12, 2024
House leaders are pressing for a farm bill deal in the lame duck, the top Democrat on the House Agriculture Committee told members in a letter obtained by Bloomberg.
“We need pressure to come together” on the mammoth legislation, which spans five years, top committee Democrat David Scott (D-GA) said. By objecting to another one-year extension, agriculture leaders are projecting confidence in a potential bipartisan agreement in this Congress.
The bill could latch onto must-pass legislation like the National Defense Authorization Act or a year-end omnibus, Scott said. Any lame duck bill would need to be bipartisan enough to make it through the Democratic Senate and White House.
Show Me the Money
If former President Trump is serious about his recently stated support for a cannabis banking bill, he needs to “bring us some Republican senators” to advance it through the chamber, a Democratic senator told Marijuana Moment.
Senate Banking Committee Chairman Sherrod Brown (D-OH), as well as Sens. John Hickenlooper (D-CO) and Mike Braun (R-IN), weighed in on the cannabis banking issue in interviews on Tuesday, though none were aware at the time that Trump had endorsed the policy change days earlier.
Sparty Party
Michigan’s licensed cannabis dispensaries set a monthly record of $295 million in sales in August, according to new data released on Sept. 11. This sales benchmark is $6.6 million more than the previous monthly record from March.
Michigan also broke a monthly sales record for most adult-use flower sold at 100,894 pounds in August, while the average price for adult-use flower remained near an all-time low of $80.14 per ounce, according to the CRA.
The Pence Fence
The Democratic candidate for Indiana governor released her Commonsense Cannabis Legalization Plan and called for the legalization of cannabis in a “responsible and well-regulated industry.”
“Indiana is an island of prohibition surrounded by states with legal cannabis industries. By taking a responsible, phased approach, we can ensure that our state is prepared for full adult-use legalization while immediately providing relief through medical marijuana.” Jennifer McCormick, candidate for Indiana Gov. (D)
Ventum on U.S. cannabis:
US Cannabis Stocks are Not Reflecting Catalyst Potential, Recent and Upcoming Catalysts Warrant Higher Multiples
We believe US cannabis stocks are not reflecting near-term potential federal and state catalysts. Valuation multiple for leading MSOs are near 52-week lows. The average 2024 EBITDA multiple currently stands at 6.4x, below the 6.9x average for the group (since July 2023), and well below 8.1x peak after DEA rescheduling announcement), despite near-term regulatory catalysts.
Quaker State
Pennsylvania readies to join the race.
Bipartisan Pennsylvania lawmakers filed a bill to legalize recreational marijuana in the Commonwealth. The renewed efforts arrive as neighboring states such as Ohio have moved forward with legal channels. Sponsors have said that regional developments have allowed other states to “capture Pennsylvania dollars into their market.”
Hard Six
Officials in at least six states with legal cannabis—Connecticut, Maine, Maryland, Michigan, Missouri and New York—reported hitting their highest-ever monthly sales in August, led by surging summer purchases of adult-use canna products.
Exit Strategy
The Governor of New Jersey signed the “Intoxicating Hemp Law”, which is designed to regulate the production and sale of certain intoxicating hemp products. The law will limit the manufacture and sale to those already licensed by the NJ Canna Commission, albeit with a limited carveout for beverages that may be sold by licensed liquor stores.
Bud Huskers
Nebraska officials have confirmed that a pair of medical marijuana legalization ballot initiatives will go before voters at the polls this November.
About two weeks after the secretary of state’s office confirmed that Nebraskans for Medical Marijuana had submitted enough signatures to secure ballot placement, he formally certified those measures today.
NYT: Nixon Knew
Pot Was ‘Not Particularly Dangerous.’
Sept. 14, 2024
Nixon Started the War on Drugs. Privately, Said Pot ‘Not Particularly Dangerous.’
President Richard Nixon’s remarks were captured on his secret White House recording system but had eluded the notice of leading Nixon era historians until now.
By Ernesto Londoño
Sept. 14, 2024
Two years after former President Richard M. Nixon launched a war on drugs in 1971, calling substance use the nation’s “public enemy No. 1,” he made a startling admission during a meeting in the Oval Office.
Speaking to a small group of aides and advisers at the White House in March 1973, Nixon said he knew that marijuana was “not particularly dangerous.” Read More…
Have a safe journey and please enjoy responsibly.
If you’d like to help Mission [Green] change federal cannabis policies, please click here.
CB1 has positions in / advises some of the companies mentioned and nothing contained herein should be considered advice