💸 The Tape

The Future Of The Industry Is Now In Matt Gaetz Hands

If politics were a roller coaster, Matt Gaetz would be the wildest ride in the park—no height restrictions, plenty of twists, and a sign that reads "Enter at Your Own Risk." Representing Florida's 1st congressional district since 2017, Gaetz has managed to keep both his supporters and critics on the edge of their seats. From his staunch conservatism to his surprising advocacy for cannabis reform, let's take a tour through the ups and downs of his political journey.

Climbing the Political Ladder with Swagger

Matt Gaetz didn't just enter politics; he swaggered in wearing aviator sunglasses. Starting in the Florida House of Representatives in 2010, he quickly made a name for himself as a passionate defender of conservative values. With a flair for the dramatic and a knack for media appearances, Gaetz became a prominent figure in state politics faster than you can say "sunshine."

In 2016, he set his sights on the national stage, successfully running for Congress. Aligning himself closely with then-President Donald Trump, Gaetz became one of the most vocal supporters of the administration. His willingness to say what others wouldn't made him a staple on cable news shows and a favorite among the MAGA crowd. It was all uphill—or depending on your perspective, downhill—from there.

Navigating the Loops and Twists

No roller coaster is complete without its loops, and Gaetz's career has had plenty. He's faced criticism and controversies that would make even the most seasoned politician queasy. From heated debates on the House floor to eyebrow-raising comments on social media, Gaetz has never shied away from the spotlight—even when it might have been wise to do so.

But like a cat with nine lives (or perhaps a politician with nine PR teams), he has managed to land on his feet time and again. Whether it's passionately defending his positions or deflecting criticism with a well-timed quip, Gaetz seems to thrive in the turbulence that might derail others.

A Surprising Turn: Gaetz Goes Green

Just when you thought you had Gaetz all figured out, he takes an unexpected turn—straight into the cannabis debate. Yes, you read that right. The same congressman known for his conservative stance has become one of the leading Republican voices advocating for marijuana reform.

Gaetz has co-sponsored the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which seeks to decriminalize cannabis at the federal level and address the injustices of the war on drugs. He's argued that federal prohibition infringes on states' rights and that reform is necessary for criminal justice. In congressional hearings, Gaetz has been known to spar with his own party members over the issue, showcasing a rebellious streak that's as surprising as finding a vegan option at a Florida barbecue.

He's also supported legislation to expand research into medical marijuana, emphasizing its potential benefits for veterans and patients with chronic illnesses. In doing so, Gaetz has carved out a niche for himself as a conservative willing to cross the aisle—or at least peek over it—when it comes to cannabis policy.

The Descent and the Climb

Every roller coaster has its drops, and Gaetz has experienced a few political free-falls. His unwavering support for Trump has been a double-edged sword, especially as the political landscape shifts. Critics have accused him of prioritizing headlines over policy and theatrics over substance. Yet, despite the turbulence, Gaetz has maintained his seat and his influence, much to the chagrin of his detractors and the delight of his base.

In recent times, Gaetz played a pivotal role in the House of Representatives' internal dynamics, sometimes clashing with party leadership and pushing for changes that shake up the status quo. Love him or loathe him, Gaetz is anything but predictable.

Cannabis Crusader or Contradiction?

Just when you thought Matt Gaetz's political saga couldn't get any more intriguing, whispers are circulating that he might be poised for an even more influential role—one that could significantly impact national policy on cannabis. Reports suggest that Gaetz is being considered for a top position in the Justice Department, potentially as U.S. Attorney General. If this comes to pass, it would place one of the few Republican congressmen who actively supports and has voted for marijuana legalization at the helm of the nation's law enforcement.

Such an appointment would send a strong signal that the federal stance on cannabis might shift towards a more progressive approach, aligning with the ongoing efforts to reschedule marijuana—a move Gaetz has been on the record saying “is not enough”. His concern that merely rescheduling cannabis could open the door for large pharmaceutical companies to dominate the industry indicates he might push for reforms that protect small businesses and ensure equitable growth within the market.

Interestingly, while Gaetz voted in favor of federal legalization, he parted ways with some of his colleagues on a recent state-level measure to legalize adult-use cannabis in Florida, which failed at the ballot box. He argued that such significant policy changes should be enacted through the legislature rather than constitutional amendments, allowing for more flexibility and refinement over time.

If Gaetz does ascend to a higher office, his blend of conservative principles with progressive views on cannabis could significantly reshape the national conversation and legislation surrounding marijuana. It would be a fitting next chapter in a career that's been anything but conventional. As with any good roller coaster, just when you think the ride is over, there's another loop. With Matt Gaetz, it's wise to expect the unexpected—the journey ahead is sure to be as unpredictable as ever.

📈 Dog Walkers

MediPharm Reports Q3

MediPharm Labs (TSX: LABS) is trimming down and tuning up, reporting a narrowed adjusted EBITDA loss of $743K for Q3 2024, a huge leap from last year's $2.4M loss. With revenue up 15% to $9.8M, it’s clearly gaining ground, especially in international sales, which now make up 36% of revenue, spiking 37% year-over-year. Gross profit hit 32% thanks to efficiency gains and better product mix, while paying off $2.2M in convertible debt means MediPharm is now debt-free. With $13M in cash, MediPharm’s refresh of its Beacon brand in Germany and booming Australia sales underscore its focus on global growth, particularly in high-value markets like the UK, Brazil, and New Zealand.

C21 Outperforms Again

C21 Investments (CSE: CXXI) is enjoying a growth spurt, courtesy of its new South Reno dispensary. Revenue jumped 14% to $7.5M in Q2, largely driven by this location’s 50% sales growth from July to September, and another 14% boost in October. Gross margin hit 43.5%, up from 31% last quarter, highlighting gains from operational efficiencies. Adjusted EBITDA soared to $1.3M, quadrupling Q1's $0.3M, while free cash flow turned positive at $0.8M. CEO Sonny Newman credits these gains to "strong performance" and sees room for more as they optimize existing operations and explore further expansion. Though Nevada sales dipped, the Reno store's success underscores C21’s potential for sustainable growth in a competitive market.

👾 Number Of The Day

$314.8M Total number of pre-roll sales in MA over the last year.

🗞️ The News

C21 Investments Reports Second Quarter Financial Results

MediPharm Labs Reports Third Quarter Results

Charlotte's Web Reports 2024 Third quarter Financial Results

Marijuana stakeholders walk fine line to join rescheduling hearing

Green Lady Dispensary receives first water shipment of marijuana to Nantucket, Massachusetts

Texas Lawmakers Prefile Bills To Legalize Marijuana In 2025 And Expand Low-THC Medical Cannabis Program

📺 YouTube

Cannabis News: VFF Earnings + Senate Leader Announced | Trade to Black

What we covered:

✅ On our latest Trade To Black Podcast at 4pm EST, Michael DeGiglio, CEO of Village Farms (NASDAQ:VFF) joins us to talk about the companies latest earnings, and explains how the cannabis segment saw a 29% year-over-year growth in total net sales.

Some of the other notable highlights from their earnings included international medical cannabis sales doubling year over year, with significant growth in Germany, Australia, and the UK.

Plus, earlier today it was announced that Senator John Thune will become the new Senate Majority Leader come January 20th, 2025 on the day Donald Trump officially becomes the 47th President of the United States of America.

Shadd & Anthony will discuss whether or not that's a good thing for the cannabis industry long term, and the effect it will have on cannabis stocks moving forward.