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  • 🧐 When Will We Up List? 🧐

🧐 When Will We Up List? 🧐

GM Everyone,

There's a new flavor of the week in the cannabis sector, ladies and gentlemen, and that flavor is "Up Listing." With concrete confirmation that the wheels are in motion to bring Schedule 3 from proposed rule to implemented law and the capital markets quagmire that followed, investors quickly had a come-to-Jesus moment and realized that the ultimate issue here is "custody and up listing," and we won't see efficient capital markets until then. The clarity around uplisting is about as clear as a glass full of motor oil, so for the time being, we are going to tap our resources to set the record straight and keep a close eye on how this develops in the coming months.

Today’s letter can be read in 6 minutes and 08 seconds.

What's Driving the Market Today?

Stock market futures are up this morning, these are the top highlights:

  1. U.S. 10-year Treasury yields saw their biggest weekly drop this year, fueling optimism for potential Federal Reserve rate cuts.

  2. Asian markets rose, with MSCI's broadest index of Asia-Pacific shares outside Japan reaching a year-high.

  3. U.S. job growth slowed in April, leading money markets to price in two potential 25 bps Fed rate cuts this year.

  4. The U.S. dollar strengthened against the yen despite expectations for Fed rate cuts, indicating persistent currency market pressures.

Canopy Growth Funds Strategic Expansion

Facts that matter:

  1. Canopy Growth raises $50M and focuses on stabilizing finances.

  2. Canopy Growth restructures $27.5M in debt and issues 3.35M warrants.

  3. Canopy Growth’s U.S. expansion is supported by institutional investors.

Quick Hit: Canopy Growth, a major Canadian cannabis producer, is improving its financial health by restructuring its debt and raising new capital. The company has announced an agreement to restructure approximately C$27.5 million (around $20.3 million) in debt that was set to mature in September 2025. As part of the deal, Canopy will issue an investor 3.35 million common share purchase warrants, exercisable at C$16.18 per share over five years.

Small Cap Stocks: Angostura Marks Bicentennial Milestone

Facts that matter:

  1. Angostura celebrates two centuries of beverage market success.

  2. Angostura’s financial strength underscores small-cap viability.

  3. ESG principles integral to Angostura’s market strategy.

Quick Hit: Angostura is a leading Caribbean manufacturing company known for its exceptional rum brands, including Angostura 1824, 1919, and 1787, as well as its unique flavored rums and bitters. The company also offers innovative beverages like Angostura Chill. As a Royal Warrant holder to Queen Elizabeth II, Angostura aromatic bitters have a global reach in 170 markets. The company’s iconic bitters recipe remains unchanged since 1824. Angostura has delighted generations in Trinidad and Tobago, and its premium rums have earned numerous international accolades, with over 25 prestigious awards received.

Trade to Black Podcast: Cresco Labs and DEA Policy Changes

Facts that matter:

  1. Cresco Labs CEO discusses DEA’s new cannabis scheduling proposal.

  2. Cresco Labs’ strategic responses to DEA regulatory changes discussed.

  3. CEO Bachtell optimistic about future cannabis regulation impacts.

Quick Hit: Charlie Bachtell shared his insights into this important period, emphasizing the potential effects on Cresco Labs‘ operations and strategic positioning. “My understanding is legally, those timeframes are not explicit, they’re just based on precedent. So, I would expect, at a general level, that this is going to follow a fairly traditional process. I think that’s for the better,” Bachtell stated, highlighting the procedural expectations.

Small Cap Sunday Episode 2

Yesterday on Small Cap Sunday, we provided an overview of research for four small-cap companies: New Lake Capital (OTCQX: NLCP), Andrew Peller (TSE: ADW.A), Angostura Holdings (TTE: AHL), and IMAX (NASDAQ: IMAX). Our analysis covered their business models, revenue drivers, historical financial performance, and creditworthiness. Find out if Shadd and Bill would buy these companies and their reasons for investing or sitting on the sidelines. Watch the video at this link.