💸 High Impact

The Batttle For AU Cannabis In Florida Is On

The What - The debate over Florida's Amendment 3, which seeks to legalize recreational marijuana for adults, has sparked intense opposition and support from prominent figures. On one side, billionaire hedge fund manager Ken Griffin has invested $12 million to oppose the amendment. Griffin's campaign aligns with Governor Ron DeSantis and other Republican leaders who fear the amendment will negatively impact Florida's quality of life. On the other side, State Senator Joe Gruters, a significant Republican voice and former chair of the Florida Republican Party, has broken ranks to endorse Amendment 3. This clash between influential opponents and supporters sets the stage for a heated battle over the future of marijuana legalization in Florida.

Ken Griffin, CEO of Citadel, just made waves by dropping a massive $12 million to fight against Florida's Amendment 3, which aims to legalize recreational marijuana. Griffin called the amendment “a terrible plan” that would create monopolies for large marijuana dispensaries and lead to increased public and private use, resulting in more dangerous roads and higher addiction rates among youth. This hefty donation is part of his broader $20 million commitment to the "Keep Florida Clean" initiative, aligning with Governor Ron DeSantis' opposition to the amendment. Meanwhile, supporters of Amendment 3 argue that it will make Florida safer by regulating marijuana and keeping people out of jail for minor possession

Enter stage left, Florida State Senator Joe Gruters, a key Republican figure and former chair of the Florida Republican Party, has broken ranks with his party to endorse Amendment 3, which aims to legalize recreational marijuana for adults. Gruters argues that legalizing recreational cannabis is a matter of personal freedom, public safety, and economic benefit, as it would regulate the market, generate significant revenue, and create new jobs. His endorsement comes despite strong opposition from Governor Ron DeSantis and other Republican leaders, who argue that the amendment would lead to negative societal impacts. Gruters' support adds a significant voice to the pro-legalization camp, reflecting a broader coalition behind the amendment​.

The Why - Well my friends the fact that this is now in play matters on so many levels. First off, Kens stated reasons for “Keeping Florida Clean” are a crock of sh*t and read as if “Dr” Kevin Sabet wrote them himself. As per a federal report published by SAMHSA “the percentage of young people aged 12 to 17 who’ve ever tried marijuana dropped 18 percent from 2014” which coincides with legal adult sales in the U.S. coming online. The claims of an increase in teen use paired with adult use cannabis laws simply are not true.

The public consumption argument is valid and strict public consumption measures should be rolled out alongside Amendment 3. Let’s horse trade here Kenny, most sensible people aren’t lighting up in public anyways but agreed that is a potential problem.

Getting down to brass tacks, the passing of adult use cannabis is all about freedom. The freedom to choose to do whatever you want with your own body and the freedom to freely consume a substance that is less dangerous than alcohol and nicotine combined. The generational shift has happened. Cannabis is here to stay, and the genie will not go back in the bottle. No one is asking you to fall in line, Ken. No one is going to start lighting up blunts on the Citadel trading floor and no one is going to force you to like cannabis. So stop licking the boots of our warped Governor when it comes to this issue and do something sensible. Vote #YesOn3.

📈 Dog Walkers

The Thumb Continues To Print Money

Green Thumb Industries reported their Q2 earnings yesterday after the bell and posted yet another outstanding quarter. The Thumb beat estimates on all financial metrics, yielded $0.09 EPS, and bought back $20 million worth of paper in the quarter. Hats off to you, Mr. Kovler and the gang. Keep printing Q’s like this, and Twitter will forgive you for all of the cryptic tweets.

• $280.1M Revs; est. $277.2M

• $93.8M AEBITDA; est. $84.3M

• $150.5M GP; est. $140.7M

• $54M OI; est. $53.9M

• 53.7% GM; est. 50.7%

• $20.7M NI; est. $13.8M

• $.09 EPS; est. $.04

IIPR Reports Q2 Numbers

Innovative Industrial Properties, Inc. (NYSE: IIPR) dropped their Q2 2024 results, and it's looking good. They raked in $76.5 million in total revenue, up 20% year-over-year, thanks to smart property acquisitions and strong leasing activity. Rental income, their main moneymaker, saw a nice boost, hitting $72.9 million. Net income came in at $40.3 million, or $1.41 per diluted share. Plus, they've got a solid balance sheet with $140 million in cash and cash equivalents, setting them up nicely for future growth and new opportunities​.

Newflash: rescheduling is bullish for this business in a big way.

MDMA Is Gaining Some Support

A group of 80 bipartisan lawmakers is urging the FDA to consider approving MDMA-assisted therapy, highlighting its potential to treat PTSD, particularly for veterans. They emphasize the urgency due to the high suicide rates among veterans and the promising results from MDMA research. The letters, sent to the Biden administration and FDA, stress the need for evidence-based decision-making and the importance of providing new, effective treatments for PTSD. The push follows an FDA advisory panel's recent rejection of MDMA-assisted therapy​ by Lykos Therapeutics.

🗞️ The News

Green Thumb Industries Reports Q2 2024 Earnings

Innovative Industrial Properties Reports Second Quarter 2024 Results

Ascend Wellness Leads US Cannabis Industry Earnings Season with Solid Q2 Performance

USDA Adds Another Hemp Industry Representative To Trade Committee To Promote The Crop Globally

80 Bipartisan Lawmakers Push FDA To Seriously Consider Approving MDMA-Assisted Therapy

Nearly 100 Ohio dispensaries cleared to sell adult-use cannabis

📭 Research

Initiating Coverage: Green Thumb Industries - Download Here

Reconfirming Buy Rating: MariMed - Download Here

Initiating Coverage Of Verano Holdings Corp. - Download Here

Initiating Coverage: TerrAscend - Download Here

📺 YouTube

MSOS Monday: Marijuana Stocks Earnings Season Gets Underway

What we covered:

✅ On our latest Trade To Black Podcast as we launch full week coverage of the latest earnings season featuring the major MSO's late financial performance.

We will dive into Ascend Wellness' (OTCQX: AAWH) latest earnings that included $141.5M, and gross profit amounting to $41.57M.

Also, Dan Ahrens from AdvisorShares (NYSEARCA: MSOS) joins once again as we discuss latest industry news involving Senate Majority Chuck Schumer and his letter submission to the DEA, along with HHS news, and last but not least ..