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- 🐝 The Cannabis Industry Is Buzzing 🐝
🐝 The Cannabis Industry Is Buzzing 🐝
Anthony Varrell
July 24, 2024
GM Everyone,
The powder keg that cannabis has become is building up and ready to have its fuse lit. We are seeing positive signs all around us but the PTSD that the cannabis industry has given many people over the years is still casting doubts amongst many. All we need is for AG Garland to poke his head out and give direction on the final ruling as we are on a train straight to Valhalla.
Today’s letter can be read in 7 minutes and 45 seconds.
What's Driving the Market Today?
Futures are down this morning, and this is what is driving the sell-off:
Alphabet's Q2 beat, but the stock fell 2%, AI theme unimpressive.
Tesla's profit margins are at a five-year low, and stock is down 8%.
India ups US oil imports and cuts Russia's.
Eurozone business activity contracts hit European markets.
💸 High Impact
Rescheduling Data Is Bullish
The What - Two analyses yesterday reveal that the majority of public comments on the federal government's proposal to reschedule marijuana to Schedule III of the Controlled Substances Act support more extensive reform. Most of the tens of thousands of comments favor de-scheduling marijuana entirely.
A report from the industry analytics firm Headset found that 57 percent of comments submitted to the Drug Enforcement Administration (DEA) by the deadline called for marijuana to be removed from the CSA altogether. Only 35 percent supported the Biden administration's plan to reschedule, and a mere 8 percent believed marijuana should remain a Schedule I substance. "These numbers paint a clear picture: over 9 out of 10 individuals who took the time to comment believe that cannabis should not remain a Schedule I substance," the Headset report noted.
Participation during the public comment period, which began in May and ended on Monday, was unprecedented. It surpassed the previous record set by the contentious 2020 telemedicine rules. Nearly 43,000 comments were received regarding marijuana rescheduling, compared to approximately 38,000 for the telemedicine rules.
A separate analysis by the advocacy group Drug Policy Alliance (DPA) showed similar trends. They found that 69 percent of comments supported federally decriminalizing or descheduling marijuana. This includes nearly a quarter of all comments that were submitted through a tool by United for Marijuana Decriminalization, a key member of which is DPA. The analysis also highlighted that 42.4 percent of the comments mentioned the need for federal marijuana reform to promote racial justice and social equity.
Cat Packer, DPA’s director of drug markets and legal regulation, emphasized that the comments represent a strong public demand for more than just rescheduling. "Under Schedule III, communities of color would still face disproportionate harms and lifelong consequences from federal marijuana criminalization," Packer stated. She highlighted that rescheduling would still allow for incarceration, deportation, job loss, and other severe penalties for marijuana violations, even in states where it is legal. Packer urged the Biden Administration to fully decriminalize marijuana to meet its stated priorities of racial justice and equity.
As the public comment period concludes, the DEA may hold an administrative hearing to gather additional input before finalizing any rule changes. Meanwhile, public and political debates continue, reflecting the high stakes and widespread interest in the future of federal marijuana policy.
Big Takeaway
The proof is in the data people. Cannabis rescheduling and further descheduling is something the people want and is long overdue and we will continue to see numbers from every poll and public study point to that until the cows come home. Its now on the current administration and DOJ to get the final rule implemented and knock down the first major wall for the industry since the first adult use market was ratified.
📈 Dog Walkers
Dallas Gets The Signatures Needed To Move Decrim Forward
Dallas voters will decide in November whether to adopt the "Dallas Freedom Act," which aims to decriminalize marijuana possession and limit police actions related to cannabis. While the city council supports the amendment, potential legal challenges from the state are expected.
This is huge as Dallas is the third largest city in the great state of Texas and this is signaling a major change in sentiment. If they are going to incrementally decriminalize on the municipal level it would be nice for them to really get in the game and start to implement a legal framwork around a meangingful medical program and eventually transition into an adult use market.
Cookies Needs To Do Better
Cookies, a cannabis retailer in Albuquerque, New Mexico has agreed to a $350,000 settlement for multiple violations during their opening day. The infractions included underage cannabis consumption, improper promotion, and unlicensed alcohol consumption, which led to fines being paid to the state's school fund.
There is no place for this kind of behavior in the industry and you hate to see it from a brand like Cookies. These kind of actions are some of the reasons we get flack from people outside of the industry and some of us get an inch and take a mile. Do better, Berner.
Nebraska Prohibitionist Says Prohibitionist Things
Nebraska Attorney General Mike Hilgers joined ten other states in opposing the federal proposal to reclassify marijuana from a Schedule I to a Schedule III drug. Hilgers argues that the rescheduling could undermine state laws and efforts to control substance abuse, despite advocates highlighting potential benefits for medical research and industry regulation.
Well Mike, the rescheduling of marijuana has zero bearing on undermining state laws or pepetuate substance abuse. It drops it down to a less stringent category that would allow for greater research and nullify 280e. So go on with your misinformation that has zero ground to stand on.
🗞️ The News
📭 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
Biden Drops Out: What Are The Next Steps? | TDR Podcast
What we covered:
✅ President Joe Biden announced his withdrawal from the 2024 presidential race, stirring significant uncertainty within the Democratic Party. This video explores the implications of Biden’s exit, his endorsement of Vice President Kamala Harris, and the potential candidates for VP. We also look at the potential impact on marijuana stocks.
Key Points:
Biden’s endorsements, but now what?
Democratic Nominee Selection Process
Campaign Funds
Kamala Harris Views On Cannabis
Impact on Cannabis Stocks