FREE

The Highlights

Global equities ended the week up modestly, with the MSCI World Index returning 0.07%. US indices fared worse, with the S&P 500 -0.48%, NASDAQ -0.59%, and Russell 2000 -1.56%. Most of the declines were due to a strong jobs report that sent interest rates higher, and stocks lower. Cannabis stocks fell again this week with the US cannabis MSOS ETF falling 10.83% and the global YOLO ETF dropping 8.19%. MSOS has now retraced more than 50% of the gains since the HHS announcement on August 30. Most of this week’s losses can be traced to concerns about Kevin McCarthy being ousted as Speaker of the House. While McCarthy was not the biggest cannabis supporter, he did vote twice in favor of SAFE Banking. Investors are worried that McCarthy’s replacement may make it more difficult for SAFER to pass the House. SAFER is currently awaiting a floor vote in the Senate. If successful, the House is the next step. AYR Wellness (CSE: AYR, OTCQX: AYRWF) was down 20.56% this week, but is still +117.70% since the HHS announcement. Cresco (CSE: CL, OTCQX: CRLBF) and Trulieve (CSE: TRUL, OTCQX: TCNNF) also were hit hard over the last five days. Curaleaf (CSE: CURA, OTCQX: CURLF) held up best among the top MSOs, down 6.64%. After a few tough weeks, the action in Curaleaf may reflect excitement about a potential TSX uplisting. Grown Rogue (CSE: GRIN, OTCQX: GRUSF) popped 33.33% this week on news it is acquiring 70% ABCO Garden State, LCC in New Jersey. Obie Strickler and the Grown Rogue team specialize in efficiently growing premium flower. The first New Jersey harvest is expected in 3Q24. Verano (CSE: VRNO, OTCQX: VRNOF) announced it is switching its Canadian listing from the Canadian Stock Exchange (CSE) to the Cboe Canada Exchange, formerly known as the NEO Exchange. The Cboe may offer increased liquidity and inclusion in indexes like the FTSE and MSCI. Verano also stated that the move will position the company for a move to major US exchanges if SAFER or rescheduling allows uplisting to the NYSE or NASDAQ.