The Highlights
Cannabis stocks had a volatile week but finished almost exactly flat. The US cannabis MSOS ETF ended the five days down 0.27%, while the global YOLO ETF gained 0.43%. Among the larger MSOs, Green Thumb Industries (CSE: GTII, OTCQX: GTBIF) at +6.11% and Verano (NEO: VRNO, OTCQX: VRNOF) at +5.49% performed best, while Jushi (CSE: JUSH, OTQCX: JUSHF) had the largest weekly loss. Cannabis stocks were having a strong week until MSOS fell -8.83% Friday on 86% higher-than-average volume. Investors are frustrated that cannabis stocks were not mentioned during the presidential debate, Biden had a subpar performance, and the IRS reminded businesses they can’t take normal deductions until rescheduling is complete. The news release from the IRS stated, “Although the law has not changed, some taxpayers are filing amended returns. The grounds for filing such claims vary, but these claims are not valid. The IRS is taking steps to address these claims.” Trulieve (CSE: TRUL, OTCQX: TCNFF) applied for and received $113 million in 280E refunds. Several other MSOs have applied for similar refunds that now appear more in question while we await a final ruling on rescheduling. Investors also expressed concern about the Supreme Court overturning the 40-year-old Chevron decision. This has the potential to allow for challenges and delays to the rescheduling process. On the positive side, on Wednesday, the NCCA voted to remove cannabis from its banned substance list for Division 1 athletes. The NFL stopped suspending players for cannabis in 2020 and the Ultimate Fighting Championship (UFC) removed cannabis from its banned list in December of last year. In an X Post, the NCAA said, “Cannabinoids will be addressed like other non-performance enhancing drugs like alcohol.” If only our politicians could apply such a logical position. Curaleaf (TSX: CURA, OTCQX: CURLF) became the first major MSO to launch a line of hemp-derived THC products. It offers edibles ranging from 5mg to 10mg per piece, with 50mg per package. Edibles come in rapid onset, extended release, and classic formulations. There’s also a 1:1 THC/CBN sleep formulation. The beverages are infused seltzers and offered in lime, berry, orange, and mango flavors. They are 5mg per can with rapid onset formulation. A four pack is $24.99, or $6.50 per can. We did a price comparison of popular hemp-derived beverages and shared the data on X and LinkedIn. Links in our full report. Curaleaf (TSX: CURA, OTCQX: CURLF) CEO Matt Darin joined us on Higher Exchanges this week to discuss the new hemp-derived line. We also shared due diligence tips investors can use when visiting a grow or dispensary. Those interested can catch the episode on Apple Podcasts, Spotify, or X Spaces. Links in our full report.
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