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- đź‘€ The Shot Heard Around The Industry đź‘€
đź‘€ The Shot Heard Around The Industry đź‘€
William McNarland & Anthony Varrell
June 05, 2024
GM Everyone,
We woke up yesterday to a shot heard around the cannabis industry. Ben Kovler, CEO of Green Thumb Industries, penned a letter to The Boston Beer Company regarding a potential merger that would unite his company with the alcohol giant. This would be a first for the industry, carrying major implications, though it seems to have minimal chances of passing.
Now lets sieze the memes of production!
Today’s letter can be read in 6 minutes and 25 seconds.
What's Driving the Market Today?
Stock futures are up this morning. Here is what is moving the market:
Wall Street rallies for third consecutive day amid hopes for Fed rate cuts.
U.S. job openings hit a three-year low, boosting rate cut speculation.
Canadian dollar steady as markets anticipate Bank of Canada rate cut today.
Global central banks trend towards monetary easing, limiting U.S. dollar impact.
ADP's private sector job survey and other economic reports awaited for further market direction.
Cannabis News for the Last 24 Hours
Green Thumb Industries Responds to Market Rumors and Potential Merger News
Green Thumb Industries (CSE: GTII, OTCQX: GTBIF) issued a statement addressing recent market rumors, in the press release the company stated “The Company’s policy is not to comment on market rumors.” WSJ released an article on 4th of june about a major cannabis producer exploring a potential merger with Boston Beer Company (NYSE: SAM), aiming to capitalize on the growing crossover between the beverage and cannabis markets.
Avant Brands Closes Non-Brokered Private Placement
Avant Brands (TSX: AVNT, OTCQX: AVTBF) announced the successful closing of a non-brokered private placement, securing additional funds to support its ongoing expansion and product development efforts.
High Tide Applauds Alberta’s Private Label Cannabis Decision
High Tide (NASDAQ: HITI, TSXV: HITI) has welcomed Alberta’s decision to permit private label cannabis sales, viewing it as a progressive step towards a more diverse and competitive market.
Canopy Growth’s Acquisition of Acreage Strengthens Canopy USA
Facts that matter:
Canopy Growth Corporation has finalized the acquisition of multistate operator Acreage Holdings..
Canopy Growth leverages its Ohio market position to increase Acreage Holdings growth.
The company strengthens Canopy USA’s footprint with Jetty and Wana acquisitions.
Quick Hit: David Klein, CEO of Canopy Growth, said “These are major steps forward and consistent with the strategy outlined by the company to allow our shareholders to benefit from our ownership of non-voting shares in Canopy USA, and we’re excited to see this advancing as more of Canopy USA’s priority markets come online for adult use across the Midwest and Northeast. With the acquisition of Jetty and two of the three Wana business units now complete, Canopy USA is demonstrating its executional capabilities, and we anticipate that these actions will drive growth and the realization of commercial synergies across Canopy USA’s operational platform.”
Coverage Initiated: New Lake Capital Partners
NewLake Capital stands out in the small-cap stock market for its strong financials and its unique position in the cannabis sector. The company’s business model operates on a simple yet efficient premise where it serves as a landlord to cannabis operations, offering real estate solutions that are both strategic and lucrative.They take in the money from the cannabis companies and manage it. The company takes a narrow, thin charge for doing that.
Green Thumb & Boston Beer: Market Rumors and Benefits
Facts that matter:
Green Thumb’s CEO, Ben Kovler, has reportedly been eyeing a merger with Boston Beer.
Professor Jonathan Caulkins noted, “In 2022, past-month cannabis consumers were almost four times as likely to report daily or near-daily use (42.3% vs. 10.9%) [than alcohol drinkers] and 7.4 times more likely to report daily use (28.2% vs. 3.8%).”
Green Thumb’s policy is not to comment on market rumors, Press Release states
Quick Hit: Green Thumb’s CEO, Ben Kovler, has reportedly been eyeing a merger with Boston Beer. This could potentially reshape both companies, especially considering the nature of the cannabis market. In a letter to Boston Beer CEO Dave Burwick, Kovler emphasized the mutual benefits of such a merger, highlighting the growing consumer trends towards cannabis. “As we look at a future where this consumer trend continues to gain traction, I believe we have to be proactive versus reactive,” Kovler reportedly wrote in the June 2 letter to Burwick, according to the WSJ article.
Eyeing These Four Micro Cap Stocks | Trade to Black
What we covered:
âś… Leafly (NASDAQ:LFLY) - Seattle based Cannabis online directory.
âś…Global Atomic (TSX:GLO) - Canadian Uranium miner focused on a project in Niger Africa.
âś…WonderFi Technology (TSX:WNDR) - A Canadian company that owns regulated crypto platforms for investing and payments.
âś…Autoscope Technology (OTC:AATC) - A global company based in Minnesota focused on AI and Machine learning traffic safety solutions.