💸 The Tape

We Officially Have Movement Regarding The ALJ Hearing

Apparently, the DEA's list of over two dozen witnesses was as incomplete as a teenager's homework. Chief Administrative Law Judge John Mulrooney issued a preliminary order highlighting that the information provided was insufficient. In bureaucratic terms, the DEA submitted a guest list without RSVPs, dietary restrictions, or even phone numbers. Mulrooney's order politely requests that the DEA gather its paperwork—and its wits—by November 12th, with an eye toward rescheduling (pun intended) the hearing for January or February 2025.

When the Justice Department proposed moving cannabis from Schedule I to Schedule III back in March, optimists hoped for swift action. But anyone familiar with federal bureaucracy knew better. The DEA, never known for its haste, seems content to let the clock run out past the next inauguration. Perhaps they're waiting to see which way the political winds blow—or maybe they're just really into cliffhangers.

Paul Armentano, deputy director for NORML, remains cautiously optimistic. He notes that while the administrative process is "cumbersome," the burden now falls on opponents to argue against rescheduling—a task that may prove impossible based on the fact that S3 does not increase accessibility. "Common sense and evidence will ultimately trump ideology," Armentano asserts. Let's hope he's right, but in the world of cannabis reform, common sense often takes a backseat to red tape.

It's a bit like being stood up on a date but still believing in true love. Investors, on the other hand, might be feeling less charitable. The cannabis industry has been eagerly awaiting federal rescheduling, which could open doors to banking services, tax deductions, and increased medical research—a trifecta of growth opportunities that currently feel like mirages in the desert.

From an investment standpoint, this delay adds another layer of uncertainty to an already volatile market. Companies operating in the cannabis space must now continue navigating the murky waters of conflicting state and federal laws, all while keeping an eye on the ever-elusive federal reform.

The DEA's request for more detailed information from witnesses might seem trivial, but it underscores a larger issue: the glacial pace at which cannabis policy moves at the federal level. While states continue to legalize and regulate cannabis, the federal government appears to be stuck in neutral—or perhaps reverse.

So, as we wait for the DEA to get its administrative ducks in a row, the cannabis industry—and its investors—remain in a state of limbo. Will 2025 be the year federal rescheduling finally comes to fruition, or will we be writing another one of these articles a year from now? Only time will tell, but one thing's for sure: patience isn't just a virtue in this industry; it's a necessity.

📈 Dog Walkers

New York Continues To Crack Down

Looks like some entrepreneurs in Greece, New York, took "going green" a bit too far. Seven men are now facing charges after the local police raided nine businesses allegedly selling cannabis without a license. The haul? A staggering 129 pounds of bulk cannabis, 826 pounds of THC products, 108 pounds of psilocybin products, over $1 million in cash and bank accounts, and five vehicles. The New York State Office of Cannabis Management swiftly closed all the establishments, including multiple "Red Eye" locations that seem to have ignored the red tape. This crackdown underscores the importance of regulatory compliance in the burgeoning cannabis industry. Investors should note that while the market is ripe, navigating the legal landscape is crucial to avoid seeing green turn into red.

Compass Pathways Got Rocked Yesterday

Compass Pathways just gave investors a reality check, announcing delays in their Phase 3 trials for psilocybin candidate COMP360 in treatment-resistant depression (TRD). The first study, COMP005, now expects top-line results in Q2 2025, a substantial push from previous estimates. The second study, COMP006, won't read out until the latter half of 2026, at least a year later than planned. CEO Kabir Nath attributes the setbacks to slower-than-expected patient recruitment and logistical hiccups, as well as a cautious approach to FDA concerns over "functional unblinding"—a lesson learned from the Lykos AdComm proceedings. To tighten the ship, Compass is also trimming nearly a third of its workforce and shelving preclinical programs. Investors might feel like they're on a trip they didn't sign up for.

👾 Number Of The Day

$262.8M Dollar amount of cannabis sold in Michigan in October.

🗞️ The News

7 men charged as authorities raid 9 businesses in illegal cannabis sales investigation

Compass Pathways Announces Third Quarter 2024 Financial Results and Business Updates

Election countdown: Why marijuana capital markets could thrive in 2025

25 participants tapped for DEA’s marijuana rescheduling hearing

Dutchie’s Chris Ostrowski On Cannabis, E-commerce, And AI

Massachusetts Should Legalize Psychedelics To Support Veterans Struggling With Mental Health Issues, Lawmakers Say (Op-Ed)

📺 YouTube

E-Commerce and AI: The Future of Cannabis Retail | Trade to Black

What we covered:

✅ On our latest Trade To Black Podcast, a discussion on the future of e-commerce in the cannabis industry and how it’s expected to grow over the next 5–7 years.

Joining us is Chris Ostrowski from Dutchie, the all-in-one platform powering cannabis with Point of Sale, E-commerce, Payments, and Marketing solutions. With over $22 billion in annual transactions, 1 million daily transactions, and more than 6,500 dispensaries on its platform, Dutchie has its finger on the pulse of cannabis retail.

Chris will break down key consumer trends, industry opportunities, and the current challenges businesses face to meet growing demand. Plus, we’ll dive into the future of AI and discuss if data and automation could eventually replace the modern budtender. Is the industry ready to meet the demands of tech-savvy consumers? Join us at 4 p.m. EST to find out!