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- 👊 Cannabis Banking Is Back?!?! 👊
👊 Cannabis Banking Is Back?!?! 👊
William McNarland & Anthony Varrell
June 07, 2024
GM Everyone,
Yesterday, in a turn of events I did not see coming. Rep. Dave Joyce was able to get his marijuana banking provisions in tact out of the markup period via the new funding bill. Now things can always fall apart at the 13th hour like the usually do for us folks over in the cannabis space. But I am going to continue to be positive on this until proven otherwise.
Lets roll!
Today’s letter can be read in 6 minutes and 23 seconds.
What's Driving the Market Today?
Stock futures are flat but GameStop is flying. Here is what is moving the market:
GameStop shares soar over 30% in premarket trading ahead of ‘Roaring Kitty’ YouTube livestream
US job growth in May expected to be moderate; unemployment steady at 3.9%.
Consumer spending strong on trending items despite pickiness.
US Treasury requests public input on AI in financial services.
Chinese import growth slows sharply, raising economic concerns.
Cannabis News for the Last 24 Hours
Canopy Growth Establishes $250 Million Market Program
Canopy Growth Corporation (TSX: WEED, NASDAQ: CGC) has launched a $250 million market program aimed at enhancing its financial flexibility. The initiative is designed to support the company’s strategic growth plans.
Breckenridge Distillery Achieves Double Gold at 2024 NY International Spirits Competition
For the second consecutive year, Breckenridge Distillery, a subsidiary of Tilray Brands, Inc. (NASDAQ: TLRY, TSX: TLRY) has secured a Double Gold medal at the New York International Spirits Competition. This prestigious award underscores the distillery’s commitment to quality and excellence.
New Hampshire Reaches Agreement on Marijuana Legalization Ahead of Deadline
In a significant development reported on Marijuana Moment, New Hampshire’s conference committee has reached a deal on marijuana legalization just ahead of the legislative deadline. This agreement marks a critical step towards legal cannabis in the state.
Planet 13’s Update: Florida Expansion and Consumption Lounge
Facts that matter:
Planet 13 celebrates its consumption lounge in Las Vegas and looks for growth opportunities in Florida.
Planet 13’s Las Vegas consumption lounge exceeds expectations.
Planet 13 is vertically integrated and poised for growth with potential Florida recreational cannabis legalization.
Quick Hit: One of the most talked-about recent developments is the launch of the consumption lounge in Las Vegas, which went live on April 5th. Scheffler shared his enthusiasm about the feedback received, noting, “It’s sensory overload like we normally do at Planet 13. Everything from the graphics inside to the big chandeliers made out of bongs, to just the whole atmosphere.” The lounge features unique elements, including a room decorated with Mike Tyson’s memorabilia, which has been a big hit among visitors.
Coverage Initiated: New Lake Capital Partners
NewLake Capital stands out in the small-cap stock market for its strong financials and its unique position in the cannabis sector. The company’s business model operates on a simple yet efficient premise where it serves as a landlord to cannabis operations, offering real estate solutions that are both strategic and lucrative.They take in the money from the cannabis companies and manage it. The company takes a narrow, thin charge for doing that.
Canopy Growth Corp. Launches US$250 Million ATM Program
Facts that matter:
Financial Stability: Canopy Growth’s US$250 million ATM program strengthens its financial position for potential investments and debt reduction.
Flexible Capital Raising: The ATM program allows incremental share sales at market prices, optimizing the capital raise without a major stock impact.
Timing: Canopy Growth stock is up 53.45% year to date, which is favorable for ATM transactions.
Quick Hit: The ATM program allows Canopy Growth to sell shares directly on the Nasdaq or the TSX at prevailing market prices, with flexibility in timing and volume to optimize capital raises. Proceeds will be used for strategic investments, potential acquisitions, general corporate purposes, and debt reduction. This approach provides greater flexibility and minimizes stock price impact compared to traditional offerings. The program doesn’t require immediate use of funds. It allows Canopy Growth to control when and how much capital is raised based on market conditions and if opportunities for using the capital present themselves to the company.
Planet 13 Stock Co-CEO Update: Consumption Lounges and Florida
What we covered:
✅ Planet 13 rolling out their flagship consumption lounge in Las Vegas
✅The Superstore model will be coming South Florida
✅Overview of the entire Florida portfolio and the plans the company has for adult use