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- đź‘˝ Colorado Is Falling đź‘˝
đź‘˝ Colorado Is Falling đź‘˝
William McNarland & Anthony Varrell
June 10, 2024
GM Everyone,
Colorado is falling. Yes, you read that right. The state of Colorado's cannabis market is falling very, very fast. When looking at retail sales trends, the market has dropped from its peak of $2.2 billion in 2020 to $1.5 billion in 2023—a precipitous decline of about 30%. Yikes. We could make a laundry list of factors that have contributed to this drop, but at this point, we would be beating a dead horse. Colorado should find its footing around here somewhere, as it is still quite a populous and sought-after state in terms of tourism. But only time will tell.
Today’s letter can be read in 7 minutes and 42 seconds.
What's Driving the Market Today?
Stock futures are slightly down this morning. Here is what is moving the market:
European stocks fall on far-right gains in France.
Macron's snap election call spooks investors.
Investors worry about U.S. rate-cut doubts before Fed meeting.
Turkey fines Google 482M lira over hotel searches.
Cannabis News Today – June 10th, 2024
German Lawmakers Approve Cannabis Law Changes
The German lawmakers have approved significant changes to the cannabis legalization law, focusing on social clubs and impaired driving. The amendments aim to create a more regulated environment for cannabis use, ensuring safety and compliance with the law.
South Africa Legalizes Cannabis Use
South Africa has legalized the private use and cultivation of cannabis, making it the first African country to do so. The law doesn’t allow commercial sales, sparking debates on trade and regulation, while other African nations watch closely.
Florida Marijuana Legalization Gains Support
A recent poll reveals that Florida’s cannabis legalization ballot measure has more support than Governor DeSantis, who opposes it. The measure is set for the upcoming ballot and shows strong public backing, as reported by Marijuana Moment.
Cannabis Industry Sees Growth in Florida, Louisiana, New York
Facts that matter:
According to a Fox News poll, 66% of Floridians favor legalizing cannabis, surpassing the 60% threshold required for such measures to pass.
Anthony Varrell emphasized, “I don’t think hemp’s going to go away anytime soon; it’s just getting more and more popular.” while discussing regulating hemp and medical marijuana in Louisiana.
New Hampshire is poised to become the 25th state to legalize adult-use cannabis.
Quick Hit: Louisiana is making significant strides in regulating hemp and medical marijuana. The state recently passed Bill 952, which lowers the allowable THC content in hemp-derived edibles from 80 milligrams to 30 milligrams and limits hemp beverages to five milligrams per serving. Additionally, the sale of these products in gas stations is now prohibited, reflecting a move towards stricter control and safer distribution in cannabis industry. Anthony Varrell commented on these changes, stating, “I don’t think hemp’s going to go away anytime soon… it’s just getting more and more popular.” He also noted the importance of these products being sold in regulated dispensaries to ensure safety and compliance.
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.
Acreage Holdings Gears Up for Ohio’s Adult-Use Cannabis Market
Facts that matter:
Executive VP Kate Ols said “In a medical market, we saw our dispensaries in Ohio and our manufacturing facility really operating at the top of the pack.”
According to EVP Kate Ols, Acreage Holdings’ strategy involves a balanced approach to vertical integration, leveraging its retail presence and supply chain capabilities.
Acquisition by Canopy USA to enhance Acreage Holdings’ market expansion.
Quick Hit: Acreage Holdings (CSE: ACRG.A.U, ACRG.B.U, OTC: ACRHF, ACRDF), a multi-state operator in the cannabis industry, gears up for Ohio’s adult-use cannabis market. Kate Ols, Executive Vice President of Acreage Holdings, gave an exclusive interview on “Trade to Black” podcast on Friday and discussed the company’s strategic positioning and future plans. The insights shared highlight Acreage Holdings’ operational framework and its readiness to capitalize on the new opportunities presented by Ohio’s change to adult use regulations.
Would We Buy These Five Small Cap Stocks? | TDR Small Cap Sunday
What we covered:
âś… Aclara Resources (TSX: ARA, OTC: ARAAF) Specializing in rare earth mining, Aclara Resources focuses on sustainable extraction methods. We analyze their mining projects, resource estimates, and potential market impact.
âś…Acadian Timber Corp (TSX: ADN, OTC: ACAZF) A leader in timberland management, Acadian Timber Corp operates in Canada and the northeastern United States. We examine their timber assets, revenue streams, and market position.
âś… 22nd Century Group (NASDAQ: XXII) Innovators in the tobacco industry, 22nd Century Group focuses on developing healthier tobacco alternatives. We explore their product portfolio, regulatory landscape, and growth prospects.
âś…MariMed (OTC: MRMD, CSE: MRMD) A multi-state cannabis operator, MariMed specializes in cannabis cultivation and product development. We analyze their market presence, product lineup, and strategic initiatives.