💸 The Tape

Charlotte’s Web is weaving its hemp genetics into an entirely new tapestry of pharmaceutical potential. By joining forces with DeFloria—an offshoot created in partnership with AJNA BioSciences—the CBD trailblazer is stepping beyond mere wellness products and straight into the realm of high-stakes, FDA-regulated medicine.

Hot off the press are results from DeFloria’s Phase 1 clinical trial of AJA001, which aims to tackle autism spectrum disorder (ASD). While the everyday observer might shrug, for market-savvy folks this signals a strategic pivot that could ripple across Charlotte’s Web’s balance sheet. The multi-compound approach behind AJA001 stands in stark contrast to the single-molecule norm typically pursued by Big Pharma. Translation? We’re looking at a full-spectrum hemp extract that tests the boundaries of conventional drug development.

Presented at the American College of Neuropsychopharmacology by Dr. Marcel Bonn-Miller, these early findings highlight an encouraging safety profile, widening the runway for a planned Phase 2 trial. If the next testing phase hits its marks, DeFloria could eventually file for FDA approval—an outcome that might turn Charlotte’s Web’s genetics into a revenue engine beyond the standard CBD tinctures on your local grocery shelf.

From a strategic standpoint, this leap into ASD therapeutics aligns nicely with Charlotte’s Web’s broader vision of infusing botanical science into underserved markets. Think about it as portfolio diversification for a company known mostly for wellness supplements. After all, bridging that gap between consumer hemp extracts and formal pharmaceuticals is no small feat—it’s akin to turning a roadside fruit stand into a nationwide grocery chain.

CEO Bill Morachnick underscores the synergy here: the “core wellness business” remains Charlotte’s Web’s bread and butter, but for shareholders hungry for more potent returns, pharma represents an entirely new layer of possibility. This expansion also cements the brand’s reputation as a cannabis pioneer, demonstrating that “hemp-based solutions” needn’t be relegated to lotions and gummies alone.

With the Phase 1 data soon heading to the FDA as part of an Investigational New Drug (IND) application, there’s clearly more runway left for DeFloria. If regulators give the green light for Phase 2, Charlotte’s Web could stand on the cusp of a lucrative pivot—one that might rewrite the narrative on multi-cannabinoid treatments and catapult the company’s stock out of its comfortable wellness niche and into the mainstream biotech conversation.

📈 Dog Walkers

NewLake Declares Dividend

NewLake Capital Partners is shaking up its boardroom and tossing in a tidy dividend for the new year. With industry veteran Dina Rollman taking a seat at the table, the REIT seems poised to navigate the cannabis sector’s legal hurdles with finesse. Meanwhile, longtime Board Member Peter Kadens is bowing out in June 2025, leaving behind what he calls “space for new perspectives.” If that’s not enough reason to pay attention, NewLake also declared a fourth-quarter dividend of $0.43 per share, an annualized yield of $1.72—evidence that real estate investment in the cannabis space is still ripe with cash flow.

FLGC Targets Germany

Flora Growth is planting some serious seeds in Europe’s burgeoning cannabis scene. The Company just announced plans to file applications for Germany’s highly anticipated pilot programs—aimed at cutting out the illicit market and backing robust policy discussions. At the helm is Sammy Dorf, whose track record at Verano Holdings includes snagging over 40 licenses across 14 U.S. states. Teamed with Managing Director Manfred Ziegler and an all-star backup in TruHC’s leadership, Flora is positioning itself as the one to watch in the continent’s emerging legal market. CEO Clifford Starke underscores this push as a prime opportunity to leverage Flora’s existing German medical market roots. Translation? Flora Growth is betting on Germany’s future—locking in first-mover advantage and aiming to gain a foothold in a market ripe for innovation.

South Carolina

S. Carolina is flirting with the green frontier, courtesy of Senator Tom Davis (R), who’s pushing a conservative-friendly medical marijuana bill. The measure, S.53, largely repackages last year’s Senate-approved plan that died in the House. Think of it like recirculated stock in a bull market, but with only partial support. Proponents trumpet its strong oversight: licensed pharmacists, doctors’ authorization, and a thorough screening of qualifiers. All signs point to this being a safer bet than the usual, volatile legislative tickers. The catch? Without widespread House buy-in, it risks languishing like an undervalued asset. Yet a supermajority of state residents back the concept, giving the proposal a tailwind that might finally push it into prime time. Next session, all eyes will be on S.53’s performance in the Palmetto State’s legislative exchange.

🗞️ The News

NewLake Capital Partners Appoints Dina Rollman to Board of Directors and Declares Fourth Quarter 2024 Dividend of $0.43 per Share

South Carolina Senator Files Bill To Legalize Medical Marijuana In 2025 As An Alternative To Opioids For Patients With Pain

Charlotte's Web Provides Update on DeFloria's Phase 1 Results Targeting Autism Spectrum Disorder

Advocates Push Biden To Expand Marijuana Pardons Following Mass Clemency Action, With New Poll Showing Americans Would Support Such A Move

📺 YouTube

Schumer, Republicans Stall SAFE Banking amid Cannabis Industry Challenges | Trade to Black

What we covered:

✅ On our latest TDR Trade to Black cannabis reform video: We explain why the SAFE Banking Act for the cannabis industry is unlikely to pass during the lame duck session. We'll discuss the reasons behind its delays, the role of Senate Majority Leader Chuck Schumer, and the implications for the cannabis industry and investors.

The SAFE Banking Act has faced numerous hurdles, despite bipartisan support. The Senate's competing legislative priorities during the lame duck session, including critical budget bills, have taken precedence. Schumer's focus on comprehensive cannabis reform with social equity provisions has further complicated the bill's progress.

Political maneuvering and opposition from key lawmakers have caused multiple delays. Schumer has emphasized the need for broader reform, slowing the SAFE Banking Act's advancement. Additionally, Republican leaders have blocked attempts to include banking reform in larger legislative packages.

In summary, the SAFE Banking Act is unlikely to pass during the lame duck session. As we move forward, the cannabis industry and investors will continue to watch closely, hoping for more decisive action on cannabis banking reform. Stay connected!