💸 High Impact

Kamala Harris Has A “Plan”

Ladies and gentlemen, hold onto your butts —Vice President Kamala Harris has just rolled out a bold pledge to federally legalize recreational marijuana if she clinches the presidency. As part of her newly unveiled "Opportunity Agenda" targeting Black men, this move aims to resonate with a key demographic that has historically leaned Democratic but shows signs of waning enthusiasm.

Currently, recreational cannabis is legal in 24 states but remains a Schedule I substance at the federal level—a legal limbo that's caused more overlap than a Venn diagram convention. This disconnect has led to a tangled web of conflicting laws, creating headaches for businesses and investors alike. Federal legalization could be the green light that propels the cannabis industry into the financial mainstream.

Harris's announcement isn't just about embracing the mellow vibes of legalization; it's a strategic play to address systemic inequalities. Black Americans have disproportionately borne the brunt of marijuana-related arrests and convictions, accounting for 29% of drug arrests despite making up only 13.7% of the population. By pushing for legalization, Harris aims to rectify these injustices and open doors for Black entrepreneurs in an industry where they've been historically underrepresented.

This isn't Harris's first foray into the cannabis conversation. Back in 2019, she co-sponsored the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, aiming to decriminalize marijuana at the federal level and expunge certain convictions. At the time, she quipped on a radio show, "Half my family’s from Jamaica. Are you kidding me?" when asked if she ever smoked pot, highlighting her personal connection to the issue.

From an industry standpoint, federal legalization under a Harris administration could be a game-changer. It would likely unleash a flood of capital into the sector, with institutional investors finally able to partake without legal trepidation. Companies could uplist to major stock exchanges, enhancing liquidity and valuation—talk about a contact high.

However, let's not get ahead of ourselves. While Harris enjoys significant support among Black voters, recent polls show her trailing historic numbers, with only 78% backing her compared to the 92% who supported President Biden in 2020. And let's not forget her Republican opponent, former President Donald Trump, who has surprisingly come out in favor of legalizing recreational weed in Florida, perhaps hoping to blaze his own trail with voters.

In the end, Harris's cannabis gambit is a high-risk, high-reward strategy—to which we have seen and heard this rhetoric before. It aims to energize a crucial voter base and could potentially reshape the industry landscape.

📈 Dog Walkers

Cannabis Medical Research Is Alive and Well Overseas

Avextra is rolling out its next big play in the European pharma space: a Phase 2 trial in Italy, testing a cannabis-based oral medication for ALS and other neurodegenerative diseases. With regulatory nods from the Italian Medicines Agency and the Ministry of Health, the NEUROBIS trial is set to run for three years. It’s a savvy move, with potential upside in the growing cannabis-based therapy market. Sponsored by AOU Maggiore della Carità and funded by Italy’s National Health Research Program, this is a high-stakes bet on cannabinoids. With its dual trials in Italy and Germany, Avextra looks well-positioned to corner a niche market in neurodegenerative disease treatments.

Storz & Bickel Are Coming To Australia Mate

Flora Growth Corp. (NASDAQ: FLGC) is making a bold play in Australia’s booming medical cannabis market by teaming up with Canopy Growth Corp. (NASDAQ: CGC), a heavyweight with a $400 million market cap. The deal? Distributing Canopy's renowned Storz & Bickel vaporizers through Flora’s subsidiary, Australian Vaporizers. With Australia’s medical cannabis market projected to grow at a stunning 33.6% CAGR, this partnership couldn't be timed better. Storz vaporizers, known for their precision and high-tech engineering, are perfectly tailored for medical cannabis users. Flora’s expansion is a savvy move to capitalize on both the domestic demand and the global handheld vaporizer market, projected to hit $5 billion by 2031.

MariMed’s IL Cultivation Is Online

MariMed Inc. (CSE: MRMD) has officially kicked off operations at its new cultivation facility in Mt. Vernon, Illinois. With the first harvest slated for early 2025, the company plans to flood the market with its award-winning Nature’s Heritage flower and concentrates. Illinois, a booming adult-use market, is ripe for expansion, and MariMed's timing couldn’t be better. Alongside cultivation, the facility also churns out cannabis-infused goodies like Betty’s Eddies and Bubby’s Baked. With five dispensaries statewide, MariMed is well-positioned to meet rising demand and strengthen its Illinois foothold.

👾 Number Of The Day

83,094 The amount of 10mg cannabis beverages sold in the entire state of California in September.

🗞️ The News

Flora Growth Corp. Enters $94 million Australian Medical Cannabis Market with Canopy Growth Corp. Distribution Agreement for Storz & Bickel Vaporizers

Avextra to launch Phase 2 trial of cannabis-based medicine in Italy

MariMed Commences Cultivation Operations in Mt. Vernon, Illinois Grow Facility

📺 YouTube

Stocks with Cash Higher Than Market Cap? | TDR Small Cap Sunday

What we covered:

✅In our latest Small Cap Sunday, co-hosts Shadd Dales and Bill McNarland will consider an analytic process to decide if a small-cap stock drowning in cash presents a great opportunity. Some of these stocks are so cheap that they have 2X or 3X the cash compared to their market capitalization!

In addition to looking at the income statement, balance sheet, and cash flow statement, they will also derive a thesis through their conversation of which cash-heavy stocks to buy or they would avoid. If you're interested in extremely cheap stocks, this is a great show to watch!