💸 High Impact

Ascend Wellness Expands Brand Portfolio

The What - Curio Wellness and Ascend Wellness Holdings (AWH) have entered into a strategic partnership that is poised to significantly impact the cannabis industry. This collaboration, announced recently, represents a calculated effort between two vertically integrated companies to enhance their market presence while minimizing the associated costs typically required for such expansions.

Curio Wellness, a cGMP-certified company renowned for its health and wellness products, and Ascend, a multi-state operator with an extensive manufacturing and distribution network, will leverage each other’s strengths through this partnership. Under the terms of the agreement, Ascend will take on the manufacturing and distribution of Curio’s award-winning products in Illinois, New Jersey, and Massachusetts. In return, Curio will manage the production and distribution of Ascend’s Ozone products in Maryland and Missouri. This capital-efficient strategy allows both companies to extend their market reach without significant financial outlay, a clear advantage in an industry where cost-effective growth is paramount.

Michael Bronfein, CEO of Curio Wellness, emphasized the strategic nature of this partnership, describing it as a “forward-thinking approach to operational strategy.” By utilizing Ascend’s well-established market infrastructure, Curio is able to introduce its products to new markets with minimal risk and investment. Conversely, Ascend benefits by gaining additional production and distribution capabilities in two key states, thereby strengthening its competitive position. This mutually beneficial arrangement exemplifies the type of collaboration that is increasingly necessary in the evolving cannabis industry.

John Hartmann, CEO of Ascend, underscored the importance of collaboration in fostering industry growth. Through this partnership, both companies will be able to enhance consumer access to high-quality cannabis products while also setting the stage for future innovations in cannabis health and wellness. As Curio and Ascend continue to focus on their core competencies, this collaboration is likely to result in further market expansions and the development of groundbreaking products.

In summary, the partnership between Curio Wellness and Ascend Wellness Holdings is a prime example of how strategic collaboration can drive significant benefits without the need for substantial capital investment. As the cannabis industry continues to mature, it is expected that similar partnerships will become more common, allowing companies to pool resources and expertise to achieve greater market penetration.

Big Takeaway

This partnership gives Ascend access to some major brands to bring into their key markets, most notably Illinois, New Jersey, and Massachusetts. Some of the Curio brands that Ascend will be manufacturing include Kaviar, Dixie, and Mary’s Medicinals—brands that have withstood the test of time if you’ve been around the industry long enough.

This is a great deal for Ascend, especially when you factor in that their Ozone brands will now be manufactured and distributed in Missouri and Maryland by Curio.

📈 Dog Walkers

Maryland Workers Unionize

In a decisive 25-0 vote, employees at The Apothecarium Dispensary in Cumberland, Maryland, have unionized with UFCW Local 27, citing poor wages, inadequate benefits, and unsafe working conditions under the parent company, TerrAscend Corp. Despite facing opposition and disinformation from the company, the workers pushed through, motivated by deteriorating conditions like leaking ceilings and exposed wires since TerrAscend's acquisition. TerrAscend responded by affirming its respect for employees' rights to unionize and committed to maintaining a fair work environment. This unionization reflects the growing momentum for labor organization within the cannabis industry.

The Proof Is In The Numbers

A recent NuggMD survey reveals that a solid 77% of U.S. cannabis consumers now source all or most of their products from legal, licensed outlets. Specifically, 65% stick exclusively to legal channels, while 12% occasionally dip into alternative sources like delta-8 shops or unlicensed dealers. This shift underscores the growing legitimacy of the legal cannabis market, even as the industry awaits potential federal rescheduling under the Biden Administration’s plans.

Matt Gaetz Critiques Amendment 3

Rep. Matt Gaetz (R-FL), known for supporting marijuana reform, announced he will vote against Florida's Amendment 3, which would legalize adult-use cannabis. Gaetz argues that the issue should be handled legislatively, not through a constitutional amendment, to allow for future adjustments. His stance contrasts with growing support for cannabis reform, even from figures like Donald Trump, who may soon make a statement on the matter. Despite Gaetz's procedural concerns, polls indicate strong support for Amendment 3, with 64% of voters in favor, surpassing the required 60% threshold for passage.

🗞️ The News

GOP Congressman And Trump Ally Will Vote Against Florida Marijuana Legalization Initiative, Despite Longstanding Support For Reform

Ascend Wellness Announces Partnership

Observations from Canopy Growth’s Latest Earnings

Village Farms And TerrAscend Report Strong Q2 2024 Earnings

Colorado marijuana complaint highlights industry’s ongoing testing scandal

📭 Research

Initiating Coverage: Green Thumb Industries - Download Here

Reconfirming Buy Rating: MariMed - Download Here

Initiating Coverage Of Verano Holdings Corp. - Download Here

Initiating Coverage: TerrAscend - Download Here

📺 YouTube

MSOS Monday + Cresco Labs Latest Earnings with CEO Charlie Bachtell

What we covered:

✅ On our latest Trade To Black podcast as cannabis earnings season continues to march through for the industry. Cresco Labs (OTC: CRLBF) CEO Charlie Bachtell joins us to talk about their latest earnings and whether or not companies like Cresco will continue to separate the gap amongst the majority of cannabis stocks in the space.

Plus we will get updates on rescheduling and SAFE Banking, and the chances of one of them passing sooner rather than later.

Also, Dan Ahrens from AdvisorShares (NYSEARCA: MSOS) joins us to talk about recent price action en lieu of Donald Trump's announcement from late last week concerning his potential support for the marijuana industry.