🙌 ITS BOOM TIME 🙌

Author

William McNarland
March 18, 2024

GM Everyone,

Well, I will be the first to admit that I made a joke out of the roundtable scheduled at the White House on Friday, and as of right now, it looks like I was very wrong. In hindsight, this event seems to have been the spark we needed to truly amplify the message of the cannabis industry throughout the mainstream media. Since Mr. Joe met with the VP, cannabis has been buzzing, and we saw what looks like the start of some sort of rally going into the close on Friday when stocks rocketed higher. Now, all eyes are on the underlying today to see if they can catch a real bid, and if they do, ITS BOOM TIME.

Today’s letter can be read in 8 minutes and 26 seconds. 

  • Launched our initial report on Auxly

  • $MSOS ready to rocket

  • Must watch Friday segments with TerrAscend and The Cannabist

  • Charlie Bachtell is on the stream today to talk everything Cresco

Capital Markets Recap of Friday:

The TDR Comprehensive Cannabis Index increased by more than 6% on Friday, while the TDR Retail Cannabis Index rose by nearly 10%. All other indexes showed gains except for the TDR Global 50, which experienced a slight decrease.

Capital Markets this Morning:

The futures are up and showing a little green, here is what is in focus globally for stocks:

  • China's industry, retail beat forecasts

  • Oil prices hit highest since November

  • Fed meeting anticipation affects yields

  • BOJ may end negative rate policy

  • Nvidia's annual developer conference

Cannabis Capital Markets Price Overview:

The High Flyers yesterday were led by CordovaCann which was up by just over 33%, and the Low Flyers were led by TILT, which was down over 12% on the day. Here are the charts of the High and Low Flyers:

Let's examine the highlights from companies in the TDR Comprehensive Cannabis Index!

  1. We launched research on Auxly Cannabis and is available for free for our Newsletter Subscribers.

  2. High Tide Inc. (NASDAQ: HITI, TSXV: HITI) reports record Q1 2024 financial results with $128.1M revenue, $10.4M Adjusted EBITDA, and positive free cash flow, marking strategic growth. Read all about it on the TDR Website!

  3. High Tide (Nasdaq: HITI, TSXV: HITI) to acquire Queen of Bud, enhancing its brand portfolio and global market reach.

  4. Verano (CBOE CA:VRNO, OTC:VRNOF)reports a 2023 revenue of $938 million with increased cash flow. Read all about it on the TDR Website!

  5. C21 (CSE: CXXI, OTC: CXXIF) to acquire a Reno cannabis dispensary and launch a C$4M private placement of convertible debentures.

  6. The Cannabist Company (Cboe CA: CBST, OTC: CBSTF) plans a US$25.75M offering of 9% senior secured convertible debentures due 2027.

Cannabis: News

  1. Vice President Harris calls for quick action to reschedule marijuana, highlighting the need for fairness and recognizing its medicinal benefits. Read all about it on the TDR Website!

Cannabis Policy: Highlights from our Friends at Marijuana Moment

  1. Biden's misunderstanding of his marijuana pardons and expungements could mislead recipients about disclosure requirements.

  2. Maine considers bills to expunge and seal pre-legalization marijuana conviction records, addressing past injustices.

  3. Alabama proposes rules to ensure medical cannabis access for patients in healthcare facilities, considering caregiver administration.

  4. Kentucky House approves bill restricting medical marijuana access for people with certain drug convictions, potentially deterring program participation.

Psychedelic News:

  1. Maryland Senate committee approves creation of a psychedelics task force to explore regulatory frameworks for substances like psilocybin.

Crypto and Miners

  1. China's central bank releases a guide for foreign visitors on using the digital yuan, allowing contactless payments without needing a local bank account.

  2. Bitfinex warns Bitcoin's fourth halving may centralize mining power, increasing risks but potentially boosting Bitcoin's price due to reduced coin generation.

  3. Two promoters of IcomTech, a crypto ponzi scheme, are convicted of wire fraud conspiracy and face up to 20 years in prison.

AI

  1. Suno, a startup, is changing music creation with AI, generating realistic songs from text prompts.

  2. Reddit faces FTC inquiry over its plans to license user data for AI training, potentially earning $203 million.

Big $$ Volume Big Caps

  1. Apple is negotiating with Google to integrate the Gemini AI engine into the iPhone, enhancing its software with AI features.

  2. Uber settles a $178 million lawsuit with Australian taxi drivers over market disruption claims.

Micro and Small Cap REITS

  1. BRT Apartments (NYSE: BRT) reports a 2023 net income of $3.9M and a Q4 net loss of $1.7M, alongside dividend and share repurchase activities.

We have Charlie Bachtell from Cresco Labs joining us along with Dan Ahrens from Advisor Shares

On Sunday’s episode of the Trade To Black podcast, we talked all about the swirling rumors of rescheduling that are making waves in the market. We'll also recap the week's standout earnings stocks and dive deep into chart analysis with "Dan, The Chart Man" from @ChartGuys.

On Friday’s Trade To Black, dive into our earnings analysis with industry titans David Hart of The Cannabist and Ziad Ghanem of TerrAscend, discussing their latest results and visions for 2024.

Join us on the Trade to Black Podcast for an exclusive with Cybin's CEO, Doug Drysdale, as we explore the breakthrough journey of CYB003, from its FDA designation to Phase 3 trials and financial strategies.

On Thursday’s Trade To Black podcast, we sit down with Trent Woloveck, Chief Strategy Director at Jushi, to breakdown the company's Q4 earnings and strategize on future growth. Dive deep into our discussion on Jushi's expansion and innovation, particularly with the introduction of new products like Sѐchѐ Kind Grind and Fine Grind. These offerings have significantly boosted Jushi-branded sales, now constituting around 53% of total retail revenue in Q4 2023 across their vertical operations.