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- š„Hemp Under Fire š„
š„Hemp Under Fire š„
William McNarland & Anthony Varrell
June 11, 2024
GM Everyone,
Hemp is under fire from all angles, and that, my friends, is a good thing. In the last couple of weeks, we have seen increased conversation related to intoxicating hemp products, and it seems to be picking up steam. Within the last 24 hours, news has broken that Rep. Andy Harris has placed the Miller Amendment in an appropriations bill, and now the state of California has introduced a bill that would annihilate intoxicating derivative products.
Game on.
Todayās letter can be read in 8 minutes and 09 seconds.
What's Driving the Market Today?
Stock futures are slightly down this morning. Here is what is moving the market:
AI hype boosts Nvidia, making it world's 2nd most valuable company.
Apple stock down 0.5% premarket after tepid response to AI reveal.
U.S. Treasury downsizes long-term holdings amid Fed rate decisions.
Political turmoil in Europe spurs uncertainty in markets.
U.S. Fed interest rate decision expected tomorrow.
šøHigh Impactšø
AYR Florida Expansion Is Underway
The What - Ayr Wellness (CSE: AYR.A) (OTCQX: AYRWF) announced today that they have leased a fresh 145,000 SF of industrial space, of which 98,000 SF will be allocated to a shiny new indoor grow. That means about 100,000 SF will be coming online to produce premium indoor flower as adult use comes online (yes, 3 is passing) in mid-2025.
This is a move that CEO David Goubert has spoken about several times, and it's great to see this deal get inked. The real sweetener here is the fact that IIP has also committed up to $30M in construction funding, which means this deal is capex light for AYR. The landlord is footing a big part of the bill. Bullish much?
Whatās Next - Shovels in the ground, baby. Time to get to work and get those grow rooms flowering. AYR will have presumably 70+ dispensary locations in the Sunshine State adult use market to take care of upon completion of this facility.
šDog Walkers
New York Does Something Right?
Yeah, you read that right. The Empire State passed a bill to add cannabis farmers markets as a regular part of the state's legal cannabis framework. Awesome. These markets arenāt necessarily new, but they would allow farmers to partner with retailers to hold a ācannabis showcase eventā for up to 2 weeks via permit. Iāll take an ounce of Gorilla Glue with my organic free-range bananas, thank you very much.
MedMen Might Lose WeHo Location
As if things couldnāt get any worse for MedMen. They are now facing a hearing to have the license for their store in West Hollywood revoked for several municipal code infractions, including an unauthorized management agreement and unpaid taxes. Go figure. The good part is this is one of only two stores they have left, so this is getting really, really close to putting the nail in the coffin for this once cannabis industry darling. Good riddance.
Rep. Andy Harris Slips It In
That sneaky representative from Maryland snuck the Miller Amendment into the FY25 Agriculture/FDA Appropriation bill. This is a big blow to the hemp industry as it means the amendment has legs outside of the Farm Bill that might get passed between now and fiscal 2026. Letās not get things twisted, it still has a ways to go, but this is just another avenue where the hemp industry could get stopped dead in its tracks, as the Miller Amendment is quite limiting.
š¼ļøMeme O.T.D.
OpenAI is quickly builing a supply chain of everyones data through partnerships with Microsoft and now Apple. Soon, all of our data from our devices will be flowing into OpenAI to advance their models. Big EFFFing YIKES.
šļøThe News
Martha's Vineyard is running out of marijuana as regulation prohibits transport over water - Politco
GOP Congressman Predicts Florida Voters Will Approve Marijuana Legalization, But Doubts Congress Will Advance Cannabis Banking By November - Marijuana Moment
Small-Cap Stocks Analysis: Aclara, Acadian Timber, 22nd Century Group, Acru Inc., and MariMed - TheDalesReport
Nvidiaās Stock Split: Market Impact and Investor Reactions - TheDalesReport
šResearch Corner
Initiating Coverage: Green Thumb Industries - Download Here
Reconfirming Buy Rating: MariMed - Download Here
Initiating Coverage Of Verano Holdings Corp. - Download Here
Initiating Coverage: Trulieve Cannabis - Download Here
šŗYouTube
TDR Trade to Black: Cantrip CEO
What we covered:
ā AYR Wellness (CSE:AYR, OTC:AYRWF) closed on a 148,000 SF in Florida to expand their footprint in the Sunshine State.
ā The future of hemp derived beveages with Adam Terry - CEO of Cantrip. We covereed several key topics regarding the current trends in hemp derived beverages, the Miller Amendment and the future of the Farm Bill.