💸 High Impact

Missouri Has Hemp Center Stage

Missouri's political landscape is witnessing a tense standoff between Governor Mike Parson and Secretary of State Jay Ashcroft over the regulation of intoxicating hemp products, such as delta-8 THC. The issue took center stage when Governor Parson issued an executive order on August 1, aiming to curb the sale of these products unless they originated from an “approved source”—a designation that neither the FDA nor Missouri has officially recognized.

Parson's order, driven by concerns over public health and safety, particularly for children, sought to empower the Missouri Division of Alcohol and Tobacco Control (ATC) to take action against licensed establishments selling these hemp or cannabis products. Additionally, the Department of Health and Senior Services (DHSS) was instructed to implement measures to embargo and denounce these items, listing over a dozen compounds from the cannabis sativa L. plant that would be subject to the ban.

In his August 1 press release, Parson emphasized the need to combat the proliferation of unregulated psychoactive cannabis products, citing an increase in emergency room visits involving young children as a cause for alarm. The governor's executive order was presented as a necessary step to protect vulnerable populations until a regulatory framework could be established by either the FDA or the state.

However, Secretary of State Jay Ashcroft, initially rejecting Parson's emergency rules on August 21, introduced an unexpected twist to the situation. Ashcroft's denial of the rulemaking was a significant setback for Parson's plan, sparking tensions between the two Republican leaders. Parson, who had recently lost the GOP gubernatorial primary, didn't mince words in his response, accusing Ashcroft of letting personal grievances cloud his judgment on an issue of child safety.

The fallout from this clash led Parson to direct the ATC to resubmit the emergency rules on August 23. Now, Ashcroft finds himself at a crossroads, reconsidering his initial stance as he reviews the new proposal. His decision will carry substantial implications for the regulation of hemp products in Missouri.

The original plan was for the emergency rules to take effect on September 1, but with Ashcroft's rejection, the timeline has been thrown into uncertainty. If he maintains his opposition, the formal rulemaking process could delay the implementation of Parson's order until as late as March 2025. This delay could significantly impact Missouri's regulatory approach to hemp and cannabis products, leaving the state in a legal gray area as the debate over intoxicating hemp continues to unfold.

As Ashcroft deliberates, the outcome remains uncertain, with the potential to shape Missouri's hemp regulations for years to come. The situation underscores the complex interplay of politics, public health, and regulatory oversight in the evolving landscape of cannabis and hemp products.

📈 Dog Walkers

Slang Reports Q2 Earnings

SLANG Worldwide Inc. is navigating a tough financial landscape, as revealed in its latest earnings report. For Q2 2024, the cannabis CPG company posted a 26% year-over-year revenue drop to $6.28 million, driven by declining sales in its Core and Emerging Markets. The gross profit also took a hit, falling 38% to $2.69 million, and the company’s comprehensive loss more than doubled to $11.50 million, reflecting increased impairments and other financial pressures. Despite reducing operating expenses by 12%, SLANG’s EBITDA and Adjusted EBITDA worsened. CEO John Moynan pointed to competitive challenges and limited cash flow, leading SLANG to explore strategic alternatives with financial advisors to stabilize its future.

Ascend Wellness Has Major Leadership Shake Up

Ascend Wellness Holdings, Inc. (AWH) has shaken up its leadership team in a strategic move to realign with long-term goals and financial priorities. Effective immediately, John Hartmann is out as CEO, and Mark Cassebaum has been terminated as CFO. Samuel Brill, a current director with deep cannabis industry experience and capital markets knowledge, steps in as the new CEO. Co-Founder Francis Perullo has been promoted to President, bringing operational expertise to the role. Meanwhile, Roman Nemchenko, previously Chief Accounting Officer, has been appointed CFO, tasked with improving margins and financial performance. The board, led by Executive Chair Abner Kurtin, believes this revamped leadership will refocus Ascend on operational excellence and sustainable growth, addressing recent performance challenges head-on.

Grown Rogue Reports Q2

Grown Rogue International Inc., a craft cannabis company rooted in Oregon’s Rogue Valley, reported a strong second quarter for 2024, showcasing a 23% year-over-year revenue increase to $7.7 million and a 21% rise in adjusted EBITDA to $2.5 million. The company continues to see solid performance from its indoor production and positive consumer reception to its new branded pre-rolls, despite pricing pressures in Oregon and Michigan. However, operating cash flow before changes in working capital declined by 38%, attributed to increased SG&A spending for the New Jersey launch and one-time payments in Michigan. CEO Obie Strickler highlighted the company’s strong balance sheet and focused expansion strategy, with New Jersey and Illinois poised as key growth markets in 2024 and 2025.

🗞️ The News

Grown Rogue Reports Second Quarter 2024 Results

SLANG Worldwide Announces Second Quarter 2024 Financial Results

Ascend Wellness Announces Major Leadership Change

Home Depot Will Stop Testing Workers For Marijuana And Limit Drug Screening For Most Employees, Internal Memo Shows

DEA Judge Schedules 10-Day Hearing On Proposed Ban Of Two Psychedelics Amid Pushback From Researchers

North Dakota Lawmakers Approve Fiscal Note For Marijuana Legalization Ballot Initiative, Estimating $10.3 Million In Revenue

Value of a cannabis license varies with type, market age

📺 YouTube

A Look at Four Unknown Marijuana Stocks | TDR Small Cap Sunday

What we covered:

✅ This video shares the highlights of our summer research, finding four lesser-known marijuana stocks. Today, we review these companies to see if Small Cap Sunday Host Shadd Dales and TDR Lead Analyst Bill McNarland would buy them after analyzing their financial statements.

Here is the review of the companies we found this summer:

👀👀Cannara Biotech Inc. | TSXV: LOVE

✅✅MTL Cannabis Corp | CSE: MTLC

✅✅Avicanna Inc | TSX: AVCN

✅✅ Ayurcann Holdings Corp | CSE: AYUR