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  • 🚨 The ALJ Stage Is Set! 🚨

🚨 The ALJ Stage Is Set! 🚨

Author

Anthony Varrell
October 30, 2024

GM Everyone,

Yesterday, the cannabis world felt the shockwave as Trulieve’s stock ($TCNNF) took a “god candle” dive in the final hour, ending down nearly 12%. This sudden plunge left many scratching their heads, especially since Trulieve had shown relative strength among its peers, with Amendment 3 seemingly coasting toward a victory. Governor Ron DeSantis has thrown taxpayer dollars into the anti-cannabis campaign, despite polls showing the people’s support. As Hirsh Jain wisely noted in a space last night, the polls that actually matter haven’t budged, no matter how loud the opposition gets. All eyes are on today’s trading session—this could get interesting.

We march.

A little longer than a 5 minute read.

💸 The Tape

We Have Our First Look Into The Looming ALJ Hearing

As the DEA prepares for its big December 2 showdown on the Biden administration’s proposal to reschedule cannabis from Schedule I to Schedule III, they’re busy assembling a cast of witnesses as diverse as a holiday potluck. After months of anticipation, public comment, and more than a few bureaucratic twists, several organizations are officially in, including the National Cannabis Industry Association (NCIA), anti-cannabis groups like Smart Approaches to Marijuana (SAM), and the National Drug & Alcohol Screening Association (NDASA).

The DEA’s decision to hold a hearing—a process typical for high-stakes regulatory changes—leaves some uncertainty over the rescheduling timeline. Many stakeholders were hoping for a straight path to final rulemaking, skipping the extra theatrics. But DEA, known for erring on the side of thoroughness (some would say delay), wants more expert input on cannabis’ effects, benefits, and potential pitfalls.

This hearing, however, could push the final decision into 2025, depending on how the election shakes up the DEA's priorities. Vice President Kamala Harris has pointed to federal red tape as the reason for the delay, a sentiment echoed in March when she expressed impatience with the DEA’s bureaucratic slog. Meanwhile, former President Trump has voiced support for cannabis reform, leading to a rare bipartisan alignment between him and Harris on this issue.

But even with both major presidential candidates nodding to reform, the rescheduling process has no guarantees. By calling this hearing, the DEA has signaled a cautious approach to cannabis reform that could leave the industry in a holding pattern. Pro-cannabis organizations like NORML and the Marijuana Policy Project are still waiting to hear if they’ve made the witness list, which only adds to the suspense.

In the end, the DEA’s December hearing is shaping up to be a mix of regulatory oversight and industry hopes, and it’s clear the road to cannabis rescheduling will be a bumpy one. For now, all eyes are on Washington as the cannabis industry waits, yet again, for the green light.

📈 Dog Walkers

The Grim Reaper Is Coming For $LEEF

LEEF Brands, Inc. (CSE: LEEF, OTC: LEEEF) is shaking up its capital structure with a 10-for-1 share consolidation and a private placement to raise up to $2.5 million. The consolidation, which goes live on November 18, aims to streamline LEEF’s share count and appeal to institutional investors, bringing the company’s total outstanding shares down to around 162.8 million. Alongside this move, LEEF is rolling out a private placement at $0.25 per post-consolidation share, complete with warrants exercisable at $0.40. CEO Micah Anderson sees this as a game-changer, enhancing liquidity and powering the company’s growth plans. LEEF might just be delaying the inevitable here and would absolutely proceed with caution when looking at the name.

4Front Rotates In New CFO

4Front Ventures Corp. (CSE: FFNT, OTCQB: FFNTF) is shaking up its financial lineup as CFO Peter Kampian wraps up his contract, signaling the company’s push to streamline operations and consolidate finance functions in Illinois. Canaccord Genuity Corp. is guiding this strategic overhaul, and Kampian’s departure is amicable—no drama, just a move toward a leaner, more efficient structure. Stepping into the Interim CFO role is Michael Kronberg, CPA, already stationed at the company’s Matteson, Illinois HQ and familiar with 4Front’s game plan from his role as Controller. With cannabis finance experience under his belt, Kronberg seems primed for the job. Kampian leaves on a high note, confident in the finance team’s readiness for 4Front’s growth trajectory.

MariMed Is A Go In Mizzou

MariMed Inc. (CSE: MRMD, OTCQX: MRMD) is set to make waves in Missouri’s cannabis market just in time for the holiday rush. The multi-state operator is gearing up to roll out its award-winning lineup statewide, aiming for a November sales launch. “Expanding our branded products into Missouri has been a key goal,” noted Ryan Crandall, MariMed’s Chief Revenue Officer, who’s counting on Missouri’s booming market to embrace their premium offerings.

Expect to see favorites like Betty’s Eddies™ fruit chews, Bubby’s Baked™ treats, Vibations™ drink mixes, and InHouse™ vapes on shelves soon. With Missouri marking MariMed’s sixth state of operation, the company will run the facility under a Managed Services Agreement while awaiting license transfer approval.

Arizona Brings Cannabis Delivery Online

Starting this Friday, Arizona adults can have cannabis delivered right to their doorsteps—a convenience that previously only registered medical marijuana patients enjoyed. While this policy shift was slated for early next year, Arizona Dispensaries Association (ADA) announced that regulators stepped up to fast-track delivery. ADA’s executive director, Ann Torrez, celebrated the milestone, crediting the Department of Health for “a well-thought-out delivery program.”

The new rules mandate tracking deliveries and clear communication between drivers and dispensaries, with the changes taking effect November 1. Interestingly, Arizona joins a list of states prioritizing cannabis delivery as a safety measure to curb impaired driving—a handy win for both consumers and public safety alike.

👾 Number Of The Day

$653.2M Dollar amount of flower sold in Missouri over the last year.

Data provided by:

📺 YouTube

Florida’s Top 5 Cannabis Companies to Watch | Trade to Black

What we covered:

✅ On our latest Trade to Black Education Series, we highlight the top five cannabis companies in Florida and the impact Amendment 3, on the ballot November 5, could have on them.

For those that don’t know, Amendment 3 aims to legalize recreational marijuana for adults over 21, potentially unlocking a $4 billion market.

Companies like Trulieve (OTC: TCNNF), Ayr Wellness (OTC: AYRWF), Verano Holdings (OTC: VRNOF), Cresco Labs (OTC: CRLBF), and Curaleaf (OTC: CURLF) stand to gain significantly if it passes. Each of these brands has built a strong foundation in Florida’s medical cannabis market, and they’re well-positioned to expand into recreational sales, boosting growth and reaching new customers. Log on —and don’t forget to subscribe!