💸 High Impact

Leafly Bets On NY Cannabis Boom

Leafly, the digital cannabis marketplace, just rolled out a new power play, partnering with the New York Cannabis Retail Association (NYCRA). This move isn't just about growing its empire but about positioning itself as the go-to tech partner for legal cannabis retailers in one of the nation’s most promising markets. The collaboration promises to give New York’s cannabis shops a competitive edge, offering access to Leafly’s suite of digital tools, which includes customer engagement platforms, educational resources, and e-commerce solutions.

Now, why should we care? Well, with New York’s cannabis market expected to grow, retailers are in desperate need of digital infrastructure to streamline operations and reach customers effectively. Leafly is bringing them just that. The state’s slow regulatory rollout has left retailers grappling with compliance while trying to build a customer base. Leafly’s partnership brings them a robust toolset designed to navigate these complexities while enhancing their market presence.

What’s particularly interesting about this partnership is its perfect timing. New York’s cannabis market has been touted as a potential goldmine, but retailers have struggled to gain momentum amid a sluggish regulatory rollout and competition from illegal sellers. By partnering with NYCRA, Leafly is cementing its role as a major player in the industry's growth—offering legitimate retailers the tech they need to thrive in a tough market.

For Leafly, this is also a strategic win. The company has long been a leader in cannabis tech, but entering a state as lucrative as New York brings a significant boost to its future prospects. With the NYCRA partnership, Leafly gets access to a rapidly growing network of retailers at the ground level, setting itself up for long-term success as the legal market expands. It’s a clever move for a company that’s focused on scaling its digital infrastructure in emerging markets.

Financially speaking, this deal aligns Leafly with what could become one of the most profitable cannabis markets in the U.S., positioning the company to benefit from increased platform usage and higher revenues as New York’s cannabis sales ramp up. The company has already proven its ability to help cannabis retailers succeed through its marketplace, and this partnership just broadens its reach.

In summary, Leafly is playing the long game, and this partnership with NYCRA is a key move in what’s shaping up to be a pivotal year for New York’s cannabis industry. With the regulatory framework still taking shape, Leafly’s positioning in the market is both opportunistic and strategic—providing retailers the tools they need to survive and thrive while cementing its own status as a cannabis industry leader.

📈 Dog Walkers

High Tide Reports Q3 Numbers

High Tide Inc. delivered record revenue of $131.7 million in Q3 2024, a 6% year-over-year and sequential increase. Gross profit rose 3% to $35.5 million, though the gross margin slipped slightly to 27%. The company achieved its 18th consecutive quarter of positive Adjusted EBITDA, posting $9.6 million, with an Adjusted EBITDA margin of 7.3%. Strong cost controls led to a reduction in general and administrative expenses to 3.7% of revenue, the lowest in four years. Despite increased staffing costs from 11 new stores, net income reached $0.8 million, up from a $(3.6) million loss last year. The Cabanalytics platform generated $9.0 million in revenue, and cash reserves hit an all-time high of $35.3 million, reflecting a strong liquidity position.

The NJ Hemp Ban Is Here

Green Thumb Industries Inc. , has announced a $50 million share buyback program, following a previous $73.3 million repurchase. Starting September 23, 2024, Green Thumb has 12 months to buy back up to 10.57 million Subordinate Voting Shares. CEO Ben Kovler emphasized that the buyback aligns with the company’s strong balance sheet, boosted by recent refinancing, and targets favorable market pricing. However, Green Thumb remains flexible, prepared to allocate funds elsewhere if better opportunities arise. Importantly, the buyback won’t rely on debt, signaling financial prudence. The company remains poised for M&A deals and capital expenditures, ensuring future growth in the dynamic cannabis market.

Real Conversation Around Psychedelic Reform Is Taking Shape

Senator John Hickenlooper (D-CO) has praised state-led psychedelics reform efforts, calling them "timely and appropriate," particularly for their therapeutic benefits in treating PTSD with substances like psilocybin. In an interview, Hickenlooper noted that states, including Colorado, serve as "laboratories of democracy" and should lead the way in reform. He highlighted the success of cannabis legalization in Colorado and emphasized the need for continued progress in psychedelics regulation. Colorado's new psychedelics program is expected to follow an iterative process similar to its marijuana framework.

Original Article - MM

🗞️ The News

High Tide Reports Third Quarter 2024 Earnings

Green Thumb Industries Is Doing All The Right Things As Of Late

Leafly Announces Partnership With the New York Cannabis Retail Association

Akanda Corp. Secures Hemp Cultivation License in Canada, Building on Previous Development Agreement

New Federal Data Shows States Collected More Than $8.7 Billion In Marijuana Taxes Since 2021

📺 YouTube

MSOS Monday + NextLeaf CEO Talks Canadian Cannabis Landscape | Trade to Black

What we covered:

✅ On our latest Trade To Black Podcast beginning at 12pm EST. We will discuss the news from over the weekend, where it was reported that Former U.S. President Richard Nixon, despite declaring the war on drugs and rejecting a federal commission’s recommendation to decriminalize marijuana, admitted in a newly unearthed recording that he knew cannabis was not particularly dangerous.

We will also review some of the price action from the MSOs last week with Dan Ahrens from AdvisorShares (NYSEARCA: MSOS) and discuss if he believes that share prices in the cannabis industry will remain flat leading up to the US Federal election scheduled on November 5th, and if we could see increased volume at some point.

Lastly, Emma Andrews from Nextleaf Solutions (CSE: OILS) will join us to discuss the current Canadian cannabis landscape, along with an update on extraction, and what we have learned since the early days of cannabis.