💸 The Tape

The Progress Around Cannabis Is Real But Far From Done

The latest findings from a Manhattan Institute poll suggest that America’s relationship with cannabis is more than a passing fling; it’s becoming a full-blown love affair—at least in policy terms. Nearly three-quarters (73%) of surveyed voters say they back some form of marijuana legalization, and a striking 46% are ready to give cannabis the green light under “all circumstances.” For a measure that once sparked fierce partisan debate, seeing a majority of Republicans jump on board for at least some form of legalization is a true sign of the times.

Still, the public’s newfound cannabis enthusiasm isn’t entirely carefree. Voters aren’t chomping at the bit to see joints lit up on every street corner. More than three-fifths believe adults should be free to consume cannabis within their own homes, but support wanes quickly once smoking moves into public territory. The idea of sparking up in a park, a bar, or near a school garners a hard “no” from the majority. Safety concerns, particularly impaired driving, remain prominent, with over three-quarters worrying about cannabis-related car crashes. Underage use and addiction also ring alarm bells, which suggests that while Americans embrace cannabis freedom, they want guardrails firmly in place.

The market ramifications? Potential sellers, take note: While 61% back the right to possess and 62% say buying is okay, only 43% fully endorse the concept of widespread commercial sales. Clearly, it’s one thing to say, “Go ahead, grow a plant at home,” and another to welcome a dispensary on every block.

These nuanced views may point toward a refined policy environment where regulators must walk a tightrope—allowing cannabis to flourish as an industry, while appeasing communities that don’t want a cloud of smoke drifting past their front yards. On the moral and philosophical side, the majority (57%) think government should butt out of personal choices if no one else is harmed. That dovetails nicely with business narratives of personal freedom and market opportunity.

All this comes as national sentiment hovers at historically high favorability levels for legalization—Gallup recently found a solid 68% in favor. With public support this strong, and with concerns carefully noted, the cannabis sector could be ready to blaze forward. The only challenge is to ensure that growing green doesn’t mean ignoring red flags along the way.

📈 Dog Walkers

WeedMaps Tries To Tap Out From The Public Markets

WM Technology is weighing a buyout proposal from two familiar faces. CEO and Chairman Douglas Francis, along with co-founder Justin Hartfield, have submitted a non-binding bid to snap up the remaining shares of the cannabis tech firm that they don’t already own—roughly 68%—for $1.70 per share. Currently holding about 32% of WM’s outstanding shares, these insiders seem keen on taking greater control at what might be seen as a bargain-basement price.

In response, the Board formed a special committee of independent directors, who’ve tapped Evercore as financial advisor and Allen Overy Shearman Sterling as legal counsel. Their mission? To figure out if this offer is good for shareholders or just a lowball attempt. No deal is done yet, and there’s no guarantee one will emerge. Investors remain on the sidelines, awaiting more clarity.

The Cannabist Goes WOOOOO

The Cannabist Company is expanding its brand portfolio by bringing Ric Flair Drip’s signature cannabis line to Delaware. Co-founded by the wrestling legend himself, Ric Flair Drip brings a flashy personality to the vape aisle, featuring four crowd-pleasing flavors—Love Afflair, Mango Mania, Strawberry Strut, and Relaxed AG. Launching these new products ahead of Delaware’s move into adult-use sales sets the stage for a strong market debut in 2025 and beyond.

From a strategic standpoint, this partnership isn’t just about style—it’s also pushing operational efficiency, expanding production capacity, and deepening the Company’s brand portfolio. Flair’s flair matches The Cannabist Company’s approach: bold, distinctive, and unafraid to jump into growing markets. With a big personality like “The Nature Boy” rolling out the red carpet, the brand’s signature products are poised to stand out on shelves.

MindMed Goes Big

MindMed is heading for an even bigger stage, set to join the Nasdaq Biotechnology Index (NBI) on December 23, 2024. For a clinical-stage biotech focused on innovative treatments for brain health disorders, landing on the NBI is a high-profile nod from the market. CEO Rob Barrow credits 2024’s rapid progress: about $250 million raised across two financings, a patent that protects its flagship MM120 ODT formulation until 2041, pipeline expansions, and the launch of Voyage, a Phase 3 trial targeting generalized anxiety disorder. With this Index membership, MindMed gains added visibility, potentially attracting more institutional investors who track the NBI. In a sector where credibility and long-term pipeline potential are king, this milestone suggests MindMed might be more than just another biotech hopeful—it could be a contender ready to deliver tangible returns and genuine innovation for patients who need it most. It’s one more reason to keep an eye on MNMD.

🗞️ The News

Medical marijuana license protests are flowing into the state

The Cannabist Company and Ric Flair Drip Launch Partnership in Delaware

WM Technology Confirms Receipt of Non-Binding Proposal from Co-Founders Regarding Potential Take-Private

Kentucky Could Legalize Recreational Marijuana If New Medical Program Works Well, Governor Says

MindMed to Be Added to the Nasdaq Biotechnology Index

📺 YouTube

Cannabis Rescheduling: Triumph or Delay Ahead? | Trade to Black

What we covered:

✅ On our latest TDR Cannabis Reform mini-series. Today, we examine Kevin Sabet, co-founder of Smart Approaches to Marijuana, and his influence on the cannabis industry. We’ll discuss some of his claims and their impact on cannabis rescheduling from Schedule I to Schedule III.

Kevin Sabet has long opposed cannabis legalization. As president of SAM, he argues that marijuana is a 'gateway drug,' despite studies disputing this claim. He also claims legalization increases youth usage and public health issues, though data from legal states show stable or decreased youth usage and managed public health concerns through regulation.

Sabet's stance on the economic impact of legalization is that increased healthcare and law enforcement costs outweigh potential tax revenue. However, states with legal markets report significant economic benefits.

If Sabet’s influence prevails, rescheduling cannabis might be delayed, hindering research and business operations. What do you think? Will his influence prevail, or is rescheduling inevitable?