💸 High Impact

The Appellate Process Has Begun

It looks like the federal cannabis ban is about to get a major stress test, thanks to some bold moves by the industry’s biggest players. Several marijuana companies just filed their opening brief in a case aimed at knocking down federal prohibition altogether. The focus? The constitutionality of keeping cannabis classified as a Schedule I drug under the Controlled Substances Act (CSA). Spoiler alert: the companies are arguing that federal restrictions are outdated, irrational, and harming a thriving industry.

The plaintiffs in the case—which include major cannabis names like Washington State-based cannabis brand Herb's House—are no small fry. They’re taking aim at the Department of Justice and the Drug Enforcement Administration (DEA), essentially arguing that keeping marijuana federally illegal flies in the face of the growing number of states legalizing its medical and recreational use.

So, what’s their big argument? The crux of their case is that the current federal laws are not only irrational but also unconstitutional. The companies argue that the federal government’s stance on cannabis is contradictory, given the growing list of states where cannabis is legal. If people in California or Colorado can legally enjoy a joint, why should the federal government continue to treat cannabis as a Schedule I substance, right up there with heroin?

And that Schedule I status? It’s a huge barrier for businesses, preventing them from accessing basic banking services, listing on major stock exchanges, or even claiming standard tax deductions (hello, 280E). This legal hurdle keeps cannabis operators stuck in a financial gray zone, even though they’re perfectly legitimate businesses in the eyes of their respective states.

The stakes here are high. If the companies win their case, we could see a seismic shift in the way cannabis is regulated across the U.S. No longer would marijuana companies have to worry about the looming threat of federal interference, and that could open up a floodgate of investment, expansion, and innovation in the cannabis space. But, let's not get too ahead of ourselves. This case is just starting its appellate journey, and we know how slow the wheels of justice can turn.

In the meantime, grab some popcorn—this legal battle is shaping up to be a must-watch for investors, regulators, and cannabis entrepreneurs alike. Whether it ends in a federal green light or more legal gridlock, the outcome will likely send ripples through the industry. Stay tuned.

📈 Dog Walkers

The Cannabist Expands PA Brand Portfolio

The Cannabist Company is expanding its presence in Pennsylvania, adding more offerings to its brand portfolio in the state’s growing medical cannabis market. With this move, the company is enhancing its product diversity, bringing popular brands like Triple Seven and Seed & Strain to local dispensaries. This strategic expansion taps into the state's increasing demand, positioning Cannabist as a key player in Pennsylvania's cannabis scene. It's a savvy play in a state with a maturing medical market, showing that Cannabist is ready to capitalize on emerging opportunities.

MariMed Drops Seasonal Edibles

MariMed’s Bubby’s Baked has rolled out a new limited-edition Pumpkin Bread Bites, just in time for the seasonal fall craze. These cannabis-infused treats aim to capitalize on the ever-popular pumpkin flavor, mixing nostalgia with a buzz. It’s a smart play for MariMed, leveraging the power of seasonal products to drive demand in a highly competitive market. With cannabis consumers craving more variety, especially with edibles, MariMed is positioning itself to ride the wave of autumn-themed indulgence. A delicious strategy with high returns—pun intended.

High Tide Making Moves To Bring Cannabis To The Masses

High Tide has teamed up with Positive Intent Events to bring cannabis into the event space, creating new opportunities for legal cannabis consumption at festivals and other gatherings. The joint venture aims to integrate cannabis into lifestyle events, offering curated experiences that align with evolving consumer preferences. By merging cannabis culture with entertainment, this partnership is set to capitalize on a growing market trend. High Tide’s strategy underscores the rising demand for experiential cannabis consumption, signaling a smart play for market expansion.

🗞️ The News

The Cannabist Company Introduces Popular Brand Seed & Strain to Pennsylvania

MariMed’s Bubby’s Baked Introduces New, Limited-Edition Pumpkin Bread Bites This Autumn

High Tide Announces Joint Venture with Positive Intent Events to Bring Legal Cannabis to the World of Events and Entertainment

Marijuana Reform Advocates Launch ‘Countdown To Clemency’ Campaign, Pressing Biden To Free Cannabis Prisoners Before His Term Ends

Texas House Candidate Smokes Marijuana While Calling For Legalization In New Campaign Ad

NC recreational marijuana sales on tribal lands attract thousands

Lawsuit dismissed against 13 marijuana testing labs in California

📺 YouTube

Donald Trump Doubles Down on the Cannabis Industry

What we covered:

✅ On our latest Trade To Black podcast today at 4pm EST, both Shadd Dales and Anthony Varrell will be joined with Sunburn Cannabis CEO & Washington Cannabis Correspondent Brady Cobb to discuss Donald Trump's latest post on his social media platform Truth that continues to support the cannabis industry.

In the post the 45th US President outlined that he believes now is the time to end arrests and incarcerations of adults for small amounts of marijuana for personal use, and as a Floridian, he will be voting YES on Amendment 3 this November for the upcoming US Federal Election.

From the cannabis space we then switch to the mental health industry, where atai Life Sciences (NASDAQ: ATAI) Founder & Chairman Christian Angermayer joins us to shed light on the recent announcement made last month by the FDA and their decision to decline approval of novel MDMA therapy for treating PTSD, as submitted by Lykos Therapeutics.

Since then the industry has left many investors feeling uncertain on whether or not many of the current research trials will also be declined, and how big pharma is currently viewing the industry as a whole moving forward.