💸 High Impact

Raj Grover Is In The House

In the High Tide (NASDAQ: HITI) Q3 2024 earnings report released September 17, Raj explains how revenue figures topped the company records at $131.7 million, representing a 6% increase year over year and sequentially, up from $124.4 million in the same period from 2023. This also represents 18 consecutive quarters of positive adjusted EBITDA.

Following the earnings recap, Raj Grover discusses the challenges being experienced in the current Canadian cannabis landscape. Illegal dispensaries are staging a comeback, particularly in larger cities like Toronto and Ottawa. Dispensaries are also cropping up more and more on Indigenous lands. Both are putting pricing pressure on legal producers, resulting in a general decline in legal sales and profitability. To this end, lobbying efforts continue on the subjects of excise tax and government crackdown on illegal enterprises.

We touch on a recent article that was published by Canadian media publication Globe and Mail who placed High Tide at No. 87 out of 417 companies listed on the 2024 Report on Business ranking of Canada’s Top Growing Companies, and Raj shares High Tide’s future plans on expansion into Germany and the US.

Later in the podcast, Seth Yakatan, a capital markets advisor to Glass House Brands, joins the show to talk about the challenges on the west coast. California is proving a difficult environment for cannabis businesses between regulatory complexity, declining retail performance, and the struggle of many companies to remain profitable.

California Governor Gavin Newsom unveiled his emergency regulations for THC-containing hemp nearly one month ago. These regulations, Newsom said, were designed to prevent the sale of hemp products containing THC and intoxicating cannabinoids to minors. In response to this ban on products containing “any detectable quantity of THC,” the state is now facing a lawsuit filed by six hemp companies and one nonprofit. Among the plaintiffs are also Cheech and Chong.  

We’ll share our thoughts on this lawsuit, plus upcoming investment trends you might want to keep an eye on.

📈 Dog Walkers

GTI To Report 11/7

Green Thumb Industries (CSE: GTII, OTCQX: GTBIF) is rolling out its Q3 2024 financial results after the market close on November 7th. Expect investors to light up with curiosity over how this cannabis powerhouse performed. As always, they’re hosting a post-results conference call at 5:00 p.m. ET, because nothing says “we’ve got your back” like a well-timed financial debrief right after happy hour. Dial in at 844-883-3895 (Toll-Free), or if you’re calling internationally, 412-317-5797—because even global investors want in on the green rush. If you miss it, the archived webcast will be online, so you can dissect the numbers with your favorite beverage and wonder what a world of weed profits looks like.

Cannabis and Guns Continue Under Fire

The Department of Justice is keeping its foot on the gas when it comes to the federal ban on marijuana users owning firearms, arguing in a new court filing that it’s constitutional—and, in their view, common sense. In a lawsuit filed by a Pennsylvania DA and Second Amendment Foundation, the DOJ isn’t budging, likening cannabis consumers to those with dangerous tendencies, such as the mentally ill or intoxicated, when it comes to gun safety. Their case leans on the Supreme Court’s Rahimi decision, which upholds restricting gun rights for those under domestic violence restraining orders. Despite state-legal medical marijuana being relatively safe from federal enforcement, the DOJ remains firm: lighting up and locking and loading are a no-go, regardless of how patient-friendly your state’s weed laws might be.

Tilt Shakes Up Board

TILT Holdings (NEO: TILT, OTCQX: TLLTF) is playing musical chairs in the boardroom. Adam Draizin has stepped down as of October 1st, making way for Marshall P. Horowitz, a seasoned legal veteran with global experience—and, crucially, TILT’s former General Counsel. Horowitz, who’s spent decades navigating corporate legal waters from New York to Hong Kong, will be representing the noteholders’ interests. CEO Tim Conder gave a nod of appreciation to Draizin for his service while praising Horowitz’s deep understanding of the company’s intricacies. With the cannabis market offering a blend of opportunity and complexity, Horowitz’s expertise could prove invaluable as TILT tackles industry challenges. For investors, it's a signal that the company isn’t just blowing smoke—it’s gearing up to face the legal and operational landscape with renewed precision.

👾 Number Of The Day

$425,890,000 Dollar amount of flower sold in Ontario over the last year.

🗞️ The News

NextLeaf Is Firing On All Cylinders

IMC Germany Announces Outstanding Preliminary Q3, 2024 Performance with 50% Growth Over Q2

Gretchen Gailey Shares Truth Behind SAFE Banking’s Lack Of Vote

NORML Files Notice of Intent To Participate in DEA’s Marijuana Rescheduling Hearing

Top GOP Pennsylvania Senator Voices Support For Marijuana Decriminalization, Activist Who Spoke With Her Says

Former NBA Player Says He Smoked Marijuana Before Interviewing Kamala Harris And Jokes He Might ‘Sneak Something In’ To White House If She Wins

📺 YouTube

What Low Equity Valuations & Debt Refinancing Means | Trade to Black

What we covered:

✅ We recap our conversation yesterday with Seth Yakatan, Investor and Advisor for the Cannabis Industry. The discussion included topics concerning California, Florida, and the growth potential of major multi-state operating cannabis companies over the next year. In addition, we highlight that with equity valuations at all-time lows and debt refinancing occurring, it makes sense to review the strongest companies in the space right now. We also recap why California will remain the biggest cannabis market for years to come, with many mergers and acquisition events forecasted in the state that will provide value for the industry.