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đź‘€ It's Time! đź‘€

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William McNarland & Anthony Varrell
May 22, 2024

GM Everyone,

Today is the day we get to hear live arguments from the DOJ in the Boies trial related to the lawsuit filed on behalf of the cannabis industry. Due to recent events, such as the OLC memo and the proposed ruling being released to the public, this could be a very interesting start to the case. The DOJ obviously isn't forced to align with what we have seen thus far, but it would be shocking to hear them argue against something they just released into the register. Arguments start at 10 a.m. ET and will be publicly available to stream.

Today’s letter can be read in 7 minutes and 18 seconds.

What's Driving the Market Today?

Stock market futures are flat today; these are the top highlights moving the markets:

  • Nvidia's earnings release after market close has investors on edge.

  • Fed officials signal no rate cuts soon, impacting rate cut speculations.

  • UK inflation data dampens hopes for a Bank of England rate cut.

  • US Treasury yields rise ahead of a 20-year bond auction.

  • Trade tensions between China and Western economies hurt European auto stocks.

Planet 13 Florida (VidaCann) Q1 2024 Financial Earnings:

Facts that matter:

  1. Planet 13’s acquisition of VidaCann to increase Florida market presence.

  2. VidaCann’s $12.51M Q1 revenue marks a strategic win for Planet 13.

  3. VidaCann’s retail operations are key to Planet 13’s Florida strategy.

Quick Hit: VidaCann reported financial earnings for Q1 2024, with total revenue of $12.51 million and a gross profit of $5.58 million, reflecting a 45% gross profit margin. Operating expenses stood at $2.98 million, representing 24% of revenue. The net income before provision for income taxes was $2.48 million, and the adjusted EBITDA was $2.75 million, achieving a margin of 22%. This financial performance positions VidaCann as a valuable addition to Planet 13’s portfolio.

Zappy Zapolin: Advocate for Psychedelic Therapies and Research

Facts that matter:

  1. Zappy Zapolin uses documentaries to advocate for psychedelic medicine’s benefits.

  2. Insurance companies’ interest could accelerate psychedelic therapies’ adoption, Zappy says.

  3. Zappy predicts significant industry shifts with upcoming FDA approvals.

Quick Hit: Zappy’s contributions to the psychedelic renaissance are perhaps best exemplified by his acclaimed documentary,  “The Reality of Truth,” featuring famous figures such as Deepak Chopra, Ram Dass, Bruce Lipton, Michelle Rodriguez, and Marianne Williamson. The success of this documentary was followed up with “Lamar Odom: Reborn,”, which chronicles the recovery journey of former NBA star Lamar Odom. These documentaries not only highlight individual transformation but also serve as a powerful advocacy tool for the broader acceptance of psychedelic therapies.

Coverage Initiated: New Lake Capital Partners

NewLake Capital stands out in the small-cap stock market for its strong financials and its unique position in the cannabis sector. The company’s business model operates on a simple yet efficient premise where it serves as a landlord to cannabis operations, offering real estate solutions that are both strategic and lucrative.They take in the money from the cannabis companies and manage it. The company takes a narrow, thin charge for doing that.

DOJ Begins 60-Day Comment Period to Reschedule Cannabis:

Facts that matter:

  1. DOJ initiates a 60-day period for public comment on cannabis rescheduling.

  2. Rescheduling supported by DOJ follows HHS recommendation.

  3. Rescheduling to Schedule III could transform the cannabis industry.

Quick Hit: The U.S. Department of Justice (DOJ) has initiated a formal rulemaking process to reschedule marijuana from a Schedule I to a Schedule III substance under the Controlled Substances Act (CSA). This development marks the beginning of a 60-day public comment period, a crucial step in the regulatory process. During this time, stakeholders, including members of the public, industry representatives, and advocacy groups, are invited to submit their comments and perspectives on the proposed rescheduling.

Zappy Zapolin’s 2024 Update On The Psychedelic Renaissance | Trade to Black

Facts that matter: Join us today for a podcast with Zappy Zapolin, an award-winning filmmaker and psychedelic entrepreneur. We will ask Zappy for his take on the progress of the second wave of the psychedelic renaissance and the upside for psychedelic stocks. Host Shadd Dales will ask about the ongoing FDA priority review for Lykos Therapeutics MDMA-assisted therapy (formerly MAPS PBC) and the chances of it passing. In addition, we talk about highlights of 2024 including the capital raising of psychedelic companies like Beckley Psytech, Cybin, Mind Med, Reunion Neuroscience, and Lykos Therapeutics and the industry progress in clinical trials.