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🌐 CURA Invades Canada 🌐

Author

William McNarland
March 20, 2024

GM Everyone,

Boris did it, everyone! He is the first MSO to buy a Canadian LP. Yesterday, Curaleaf announced that they are acquiring Northern Green Canada, a licensed cannabis producer focused primarily on meeting demand in the import-export market. The caveat here is that NGC exports 98% of the product produced to Europe, and Curaleaf is already one of their main clients. Genius move, Boris! Cannabis is going to be a global growth story, and right now they are laying the foundation to execute on this. Bravo!

Today’s letter can be read in 7 minutes and 52 seconds. 

  • Curaleaf truly goes global

  • BIG movers both ways in the TDR Cannabis Index

  • $HITI livestream yesterday was a must see

  • Matt Hawkins joins us today to have a conversation about the institutional side of cannabis investing @ 4pm

Capital Markets Recap of Tuesday:

The TDR Comprehensive Cannabis Index down by almost 4% on Monday, while the TDR Crypto Index was down by over 5%. The TDR US Small Cap REITs was up 1.5% on the day.

Capital Markets this Morning:

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

  • Fed to announce policy decision

  • G7 economies see disinflation

  • Canada, UK inflation below forecast

  • BOJ ends negative rates

  • Nvidia's AI processor ships this year

Cannabis Capital Markets Price Overview:

The High Flyers yesterday were led by StateHouse which was up by just over 27%, and the Low Flyers were led by CordovaCann, which was down over 27% 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. Curaleaf (TSX: CURA, OTC: CURLF) acquires Northern Green Canada to enhance its European and Australasian cannabis supply chain.

  2. The Cannabist Company (Cboe CA: CBST, OTC: CBSTF) closes a US$25.75M offering of 9% senior secured convertible debentures due 2027. Read all about it on the TDR Website!

Cannabis: News

  1. The IRS says large cash transactions by marijuana businesses should not be deemed automatically suspicious.

Cannabis Policy: Highlights from our Friends at Marijuana Moment

  1. Top Senate Democrat and House Republican reaffirm support for marijuana banking legislation amidst congressional budget negotiations.

  2. A federally funded study finds no link between legal marijuana for adults and increased youth use.

  3. White House report to Congress highlights law enforcement concerns about persistent illegal marijuana markets despite legalization.

  4. Pennsylvania House Democrat sees a chance to legalize marijuana and explore interstate commerce, while a Republican doubts Senate support.

  5. Kansas's new Senate bill proposes a limited medical marijuana pilot program, criticized for being overly restrictive and favoring market monopolies.

  6. The Montana Supreme Court denied a request to pause a lower court decision, allowing lawmakers to vote on overriding the governor's veto of a marijuana revenue bill.

Psychedelic News:

  1. Clearmind (Nasdaq: CMND) China patent for psychedelic therapy marks a key step in treating binge behaviours and addiction. Read all about it on the TDR Website!

  2. Cybin (NYSE American:CYBN, Cboe CA:CYBN) successfully closed an oversubscribed $150M private placement for Phase 3 drug development.

Crypto and Miners

  1. MicroStrategy (NASDAQ:MSTR) dropped up to 18% as it bought 9,245 bitcoins amid a falling cryptocurrency market. The recent purchase of Bitcoins raises its holdings to over 1% of Bitcoin's total supply.

  2. The SEC requests an additional $158 million to regulate the "wild west" of crypto markets and expand its workforce.

AI

  1. Microsoft (Nasdaq: MSFT) hires Inflection AI team, including co-founder Suleyman, to lead its consumer AI, aiming to enhance its AI products and challenge Google.

Big $$ Volume Big Caps

  1. Nvidia (Nasdaq: NVDA) stock rises as CFO announces its new AI chip, Blackwell, set to ship in 2024, aiming for a $250 billion data center market.

Tune in to today's Trade To Black for an exclusive interview with Matt Hawkins of Entourage Effect Capital, as we dive into cannabis rescheduling and industry insights, plus catch our Into the Wire segment for the latest market-moving news.

Yesterday’s TDR Trade To Black podcast, we interview Raj Grover, CEO of High Tide Inc. (Nasdaq: HITI / TSX.V: HITI). We dive deep into High Tide's recent earnings, strategic growth plans, and their outlook for 2024. Don't miss this in-depth discussion on the future of cannabis, High Tide's market-leading strategies, and the potential impacts of federal rescheduling in the U.S.

On Monday’s episode of TDR's Trade To Black podcast, we interview Charlie Bachtell, CEO and Director of Cresco Labs. We highlight the recently released earnings and discuss Cresco Labs' achievement of No. 1 market-share positions in Illinois, Pennsylvania, and Massachusetts. Massive opportunities lie ahead for Cresco Labs, and they seem primed to take full advantage. Find out why.