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  • πŸ“ˆ Let's Finish Strong πŸ“ˆ

πŸ“ˆ Let's Finish Strong πŸ“ˆ

GM Everyone,

This week has been one for the record books. We can now see the light at the end of the tunnel, but we don't actually know how long the tunnel is. This uncertainty has generated more questions than answers for some. However, the next couple of weeks should set the pace for the process to kick off, with the proposed rule passing the OMB review and hitting the official register. When that happens, we can finally "celebrate" and start to plan out what the next couple of months will look like. We started strong; now let's finish strong!

Today’s letter can be read in 5 minutes and 36 seconds.

What's Driving the Market Today?

Stock market futures are up this morning, these are the top highlights:

  1. Apple's $110 billion buyback lifts its shares and bolsters S&P 500 futures.

  2. Fed's calming moves increased easing expectations, reducing Treasury yields.

  3. April U.S. jobs report awaited to gauge ongoing labor market tightness.

  4. Falling U.S. oil prices reflect easing inflation fears, dropping below $80/barrel.

  5. Bank of Japan's yen interventions pressure currency amid global currency tensions.

SNDL Targets U.S. Cannabis Assets for Growth

Facts that matter:

  • SNDL acquires major U.S. cannabis assets to prepare for federal legalization.

  • CEO Zach George highlights SNDL's proactive investment strategy.

  • Legal challenges complicate SNDL's acquisition of U.S. cannabis assets.

Quick Hit: The decision by SNDL to acquire these cannabis assets through SunStream reflects a strategy to capitalize on the regulatory-changing U.S. cannabis sector. SNDL’s CEO Zach George highlighted the importance of this initiative, stating, β€œThis initiative creates attractive optionality for SNDL upon federal legalization to deploy additional investment capital into the SunStream USA Group structure, improving the return potential of attractive U.S. cannabis assets in growing markets.” This statement underscores the company's proactive approach to strengthening its market position by investing in areas with high growth potential.

New Jersey Celebrates Cannabis Success While Neighbour New York Struggles

Facts that matter:

  • Sales in NJ show a robust 38% increase, signaling market growth.

  • NJ's market thrives with over 130 dispensaries opening in 2024.

  • NY's slow cannabis market rollout contrasts sharply with NJ's boom.

Quick Hit: In the first quarter of 2024, New Jersey’s recreational cannabis market saw sales exceed $201 million, marking a 38% increase from the previous year. From January to March 2023, sales were driven by 24 licensed dispensaries. By the same period in 2024, the number of dispensaries had risen to 130. It looks like New Jersey is on its way to becoming the next $1 Billion dollar state cannabis market.

Growing Support for Marijuana Banking Among Community Banks

Facts that matter:

  • Community banks advocate for legislative reform in marijuana banking.

  • Polling by Morning Consult reveals wide support for marijuana banking.

  • Economic and safety benefits drive community banks' marijuana banking efforts.

Quick Hit: Recent polling data by Morning Consult indicates that a majority of Americans understand the vital nature of these policy issues. They recognize the importance of maintaining access to local banking, particularly for industries like cannabis that encounter significant regulatory challenges. "Morning Consult's polling shows that Americans grasp the significance of these issues in maintaining access to local banking. ICBA is proud to support community banks as they advocate in Washington and enhance the potential of local communities across the country," added Romero Rainey.

Tweet Of The Day

Why it matters:Β Yesterday, Shane Pennington laid out a very realistic timeline as to what he rescheduling process can actually look like. This is by no means what it WILL look like but what it CAN look like.