Thriving Thursday

Cannabis Capital Markets

TDR Research's analysis of 43 cannabis companies reveals a broad range of Days Payables Outstanding (DPO), from 13 to 981 days, indicating diverse payment strategies within the industry. Lower DPOs suggest some companies are managing cash effectively by paying suppliers promptly, while higher DPOs may point to strategic cash flow management or potential payment difficulties. Read the report on the TDR Website released this morning.

Executive and Board Turnover Continues - Executive with Munchies experience joins Cannabis Company. Charlotte's Web Holdings, Inc. (TSX: CWEB, OTC: CWBHF) added Matthew E. McCarthy, ex-CEO of Ben & Jerry's, to its board, replacing the retiring Susan Vogt. McCarthy brings extensive Unilever experience and a track record in consumer brand growth and sustainability. He will contribute to Charlotte's Web's strategy in the CBD wellness market and serve on the Compensation and Audit Committees.

New Products are coming out everyday. At Curaleaf Holdings, Inc. (TSX: CURA, OTCQX: CURLF) announced the expansion of its Select brand with the Select Stiq, a 1g all-in-one cannabis oil vape compatible with Select Essentials oil. Featuring a compact design with an auto-draw feature and a USB-C port, the Select Stiq aims to simplify cannabis consumption. Following the Select Briq, this product will first be available in Arizona, with Nevada and Utah to follow. The launch includes brand events at Curaleaf Scottsdale during The WM Phoenix Open.

AYR Wellness Inc. (CSE: AYR.A, OTC: AYRWF) has finalized its financial restructuring, extending debt maturities and managing US$400 million in debt. The process involved issuing new shares and warrants, and raising US$40 million through additional Senior Notes due in 2026. The company is set to announce its financial results for Q4/23 and the full year on March 13, 2024, with a focus on financial stability and strategic growth.

Cannabis Policy

“Guys, get with it at the DEA, it is not 1954”, plus no response when asked if she was high! On The Late Show with Stephen Colbert, Senator Elizabeth Warren (D-MA) advocated for the legalization of marijuana, differentiating between descheduling the drug and fully legalizing it, which would require congressional action. Warren emphasized the DEA's outdated classification of cannabis on par with heroin, stating, “Right now marijuana is scheduled, it’s called, as a drug by the DEA at the same risk as heroin,” and criticized the federal barriers that prevent research and progress. Despite Colbert's questions about her personal use, Warren focused on the policy, urging the DEA to align with the modern stance of over half the states that have legalized marijuana.

In Virginia the House Committee has moved HB 698, a marijuana legalization bill, to the floor, alongside a different Senate bill, SB 448. HB 698 plans for retail sales starting January 1, 2025, emphasizing social equity by favoring licenses for those from low-income backgrounds or impacted by cannabis prohibition. SB 448, in contrast, opens license applications to all simultaneously and permits outdoor cultivation for smaller licensees. The bills' differences set the stage for complex negotiations, with stakeholder preferences evolving based on equity and access changes in the proposals.

Florida’s Senate Committee approved a bill to set THC limits on adult-use marijuana ahead of a potential legalization vote. The bill, SPB 7050, limits marijuana flower to 30% THC and other products to 60%, with edible servings capped at 10 mg THC. Aimed at differentiating medical and recreational cannabis markets, this move addresses concerns about THC's impact on mental health. The House also advanced a similar bill, HB 1269. Some senators voiced concerns over the bill's timing and its preemptive nature before the public vote. An amendment was added for a 15% THC potency variance, similar to medical marijuana regulations.

Arkansas activists resubmitted a medical marijuana expansion initiative, addressing earlier concerns raised by Attorney General Tim Griffin. The updated proposal prevents legislative changes without a public vote, allows patient and caregiver cultivation, broadens certification to more healthcare providers, introduces telemedicine assessments, and extends patient card validity. It sets a trigger for recreational legalization based on federal law changes and seeks to amend the constitution to restrict legislative alterations to voter-approved amendments. The group needs 90,704 signatures by July 5 to qualify for the ballot.

Hawaii House committees approved a bill by Rep. Della Au Belatti (D) for a psilocybin therapy program for specific mental health conditions, with legal protections for qualified users. Despite law enforcement's safety concerns, the Office of Wellness and Resilience supports the bill for its potential to offer new treatment options. Mental health professionals could prescribe psilocybin for conditions like PTSD and depression, with usage capped at five grams per session. The proposal awaits further legislative evaluation.

The South Carolina Senate debated a medical marijuana bill, led by Sen. Tom Davis, to allow access for certain health conditions. This effort follows a previous bill's failure due to House procedural issues. The bill outlines a program where licensed dispensaries, staffed with pharmacists, can sell cannabis for specified medical conditions. It bans smoking and personal cultivation, and includes a sunset clause for review eight years after legal sales begin. The legislation also aims to prevent market consolidation and allows local government regulation. The move reflects increasing support for medical marijuana in South Carolina, emphasizing a regulated, conservative approach to cannabis for therapeutic use.

The Alberta Gaming, Liquor and Cannabis (AGLC) implemented updates to cannabis regulations. These updates modify rules on cannabis sampling, sales between stores, event sales authorizations, and product storage. Notably, the changes allow for larger sample sizes and eliminate the 120-day wait for store-to-store cannabis transfers, facilitating better inventory management and offering potential for increased market access at adult-only events. Legal experts see these adjustments as significant, requiring retailers to adapt to the new regulatory framework. Read all about it on the TDR Website.

Cannabis and Exercise: (Probably won't see this section title again)

This takes an even goofier turn, considering the Washington Post rarely reports on cannabis but they made this a big story, lol. This study shows that using cannabis before running can enhance exercise enjoyment and the "runner's high" without improving performance. Conducted by Angela D. Bryan at the University of Colorado Boulder, it found cannabis increased euphoria but also perceived exertion. It suggests cannabis may encourage exercise but advises new users to start slowly.

Psychedelic Capital Markets

Cybin Inc. (NYSE American:CYBN) secured two patents in Japan for its DMT program, focusing on treatments for Generalized Anxiety Disorder (GAD). These patents protect the synthesis and use of DMT and dDMT until at least 2040 and 2041. The company is preparing for a Phase 2a study of its drug, CYB004, targeting GAD, following positive Phase 1 results.

Mydecine Innovations Group Inc. (CSE:MYCO) has been granted two Notices of Allowance from the USPTO for its psychedelic compounds in the MYCO-005 and MYCO-006 families, focusing on psilocin and MDMA analogs, respectively.

Psychedelics Policy

Hawaii House committees approved a bill by Rep. Della Au Belatti (D) for a psilocybin therapy program for specific mental health conditions, with legal protections for qualified users. Despite law enforcement's safety concerns, the Office of Wellness and Resilience supports the bill for its potential to offer new treatment options. Mental health professionals could prescribe psilocybin for conditions like PTSD and depression, with usage capped at five grams per session. The proposal awaits further legislative evaluation.

Medford, Massachusetts, has joined seven other cities in the state in deprioritizing psychedelic plant and fungi related arrests and prosecutions, advocating for a public health approach. The City Council's resolution supports state legislation to decriminalize certain psychedelics and calls for amendments to a legalization ballot question, favoring a regulatory system without a control commission. This move is part of a wider trend in Massachusetts towards reevaluating the legal approach to psychedelics, focusing on health and therapeutic benefits.administrative procedures. Read the whole store on the TDR Website!

Cryptocurrency

Have you noticed that every day we talk about reports of miners facing difficulties in obtaining electricity from local governments in North America? Well, enter Ethiopia!  Ethiopia is attracting Chinese Bitcoin miners with its low-cost hydroelectric power, despite China's ban on the practice. The government cautiously permits mining while prohibiting cryptocurrency trading, balancing potential economic benefits against the high energy demand and limited electricity access for locals. With 21 reported deals with mostly Chinese miners, Ethiopia's future in the volatile mining industry, which is facing environmental concerns, is still uncertain as it navigates regulatory and sustainability challenges. Read our detailed article on the TDR Website.

Ethereum News is Heating Up Daily - The U.S. Securities and Exchange Commission (SEC) has delayed its decision on an ether ETF proposed by Invesco and Galaxy Digital, a move anticipated by analysts. This ETF is intended to give professional investors direct access to ether, alongside the current option of ether futures on CME. Delays in decisions on ether ETF applications, including those by Grayscale Investments and BlackRock, were also noted. Analysts predict that ether's value may increase significantly in anticipation of potential ETF approvals by May, with a specific focus on May 23 as a critical deadline for such approvals.

Bitcoin miners have reduced their reserves by 8,400 tokens since early 2024, indicating sales to strengthen balance sheets before the April halving event, which will cut mining rewards by half. This reduction, reported by CryptoQuant, coincides with Bitcoin's price struggle, which has seen a drop of about 6.7% following the approval of the first U.S. ETFs that directly hold the asset. The halving, occurring every four years, aims to cap Bitcoin's supply at 21 million tokens. Bitfinex highlights that this revenue decrease might hit smaller miners harder, contrasting with larger firms like Marathon Digital Holdings, which have diversified funding strategies to support operations and expansion.

AI

Everyday we see articles of governments and organizations trying to tame AI, it is almost impossible as the progress of AI outpaces the potential for regulation or control.OpenAI is introducing watermarks on its DALL-E 3 images, following the standards by the Coalition for Content Provenance and Authenticity (C2PA). These watermarks, including invisible metadata and a visible CR symbol, help verify the images' origins, although limited to still images. The implementation, which slightly increases image sizes, aims to enhance content trustworthiness without significantly affecting image quality or generation speed. Despite this effort, OpenAI notes that watermark metadata can be easily removed, pointing to the challenge of maintaining digital content authenticity on platforms that frequently remove metadata.

Join us for another TDR Exclusive interview as Shadd Dales, Founder of the Dales Report, sits down with Raj Grover, CEO of High Tide Inc. (Nasdaq: HITI / TSX.V: HITI). In today's interview, we dive deep into High Tide's recent earnings, strategic growth plans, and their outlook for 2024.

Did you miss Trade to Black Yesterday, with Special Guest Dan McDermitt aka Dan the Chart Man!

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