The Highlights
This week, MSOS dropped 9.34%, while YOLO fell 4.46%. All the top 10 (by enterprise value) MSOs finished down. Verano (NEO: VRNO, OTCQX: VRNOF) -17.11% and Cannabist (NEO: CBST, OTCQX: CBSTF) -14.17% felt the most pain. Jushi (CSE: JUSH, OTCQX: JUSHF) held up best, losing 5.17% over the past five sessions. MSOS peaked 1,223 days ago on February 10, 2021, and is in a -87.31% drawdown. Despite positive momentum on Schedule III, stronger-than-expected 1Q earnings, and a recent Fox News Poll showing 66% support for adult-use in Florida, MSOS is up just 3.40% YTD. Cannabis trades like a call option on federal reform, and when there is less threat of a political catalyst, we tend to suffer more. The rescheduling comment period ends in 35 days, the Democratic National Convention is 63 days away, and the elections are in 141 days. Perhaps as the elections heat up, so will cannabis stocks. On Thursday, we learned that New Hampshire would remain the only New England state to not allow adult-use cannabis. Governor Chris Sununu’s proposal to have government operated cannabis stores failed to pass the House by a vote of 178-173. New Hampshire’s attempt to mimic its state-run liquor store model would have created 14 retail locations overseen by the state and would have been the first state-run cannabis program. Governor Sununu is not running for reelection, which may open the door for New Hampshire to pass a non-state-run adult-use measure in 2025. Seventy percent of New Hampshire voters favor adult-use legalization. Nevada-focused CLS Holdings (CSE: CLSH, OTCQX: CLSH) announced exciting new products for its City Trees line. The company is launching a line of solventless rosin vape cartridges through a partnership with SOMA that is expected to launch July 1, 2024. City Trees is also developing a new line of distillate vape cartridges using cannabis-derived terpenes and all natural flavors. This week on Higher Exchanges, we discussed a pension fund’s recent large allocation to cannabis. We also dug into Florida Governor Ron DeSantis’ mixed messages and what they may mean for its burgeoning hemp and cannabis markets. Those interested can listen to the latest episode on Apple Podcasts, Spotify, and X Spaces. Links accessible in our full report.
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