The Highlights
It was another quiet week across cannabis. The US cannabis MSOS ETF returned 0.23%, while the global YOLO ETF dropped 0.26%. While the plant and support for federal reform have never been more popular, real progress continues to be held hostage by politicians. While there are reasons to think reform could be imminent, soon, or in the days ahead, investors are becoming impatient with empty promises. It’s been 2,555 days since SAFE Banking was first introduced, 1,195 days since President Biden took office, 1,174 days since MSOS peaked, 682 days since the Attorney General said the Justice Department would address marijuana issues in the days ahead, and 244 days since the HHS recommended Schedule III. This week, President Biden pardoned 11 people who were convicted of nonviolent drug charges and commuted the sentences of five others. While better than nothing, it is far from fulfilling his campaign promises of decriminalizing and automatically expunging all prior convictions. Despite the lack of political progress, companies are persevering and improving operations. LEEF Brands (CSE: LEEF, OTCQX: LEEEF), the leading producer of bulk concentrates in California, reported much-improved 1Q results. Revenue increased 35% sequentially and the company recorded positive cash flow from operations in FY23 and 1Q24. Those interested can read our recent update note. Link in our full report. Nevada’s CLS Holdings (CSE: CLSH, OTCQX: CLSH) also recently reported earnings and outperformed a difficult Nevada market. The company has also been enhancing revenue and diversifying the business using asset-light licensing deals in New York and New Mexico. Those interested can read our recent update note. Link in our full report. Last week, we were in Florida for the Benzinga Cannabis Capital Conference. We moderated the opening keynote for Glass House Brands (NEO: GLAS, OTCQX: GLASF) CEO Kyle Kazan. Those who are interested or missed it live can watch our presentation and many others on YouTube. Link in our full report. This week’s Higher Exchanges episode begins by reviewing the 4/20 holiday, focusing on the revenue lift and which categories performed best. We debuted a new segment called “buy or sell” that led to fun debates on rescheduling probabilities, how to play a rescheduling bounce, when Florida may eclipse California in legal cannabis sales, and whether dispensaries will exist in 20 years. Listen on Apple, Spotify, or X Spaces. Link in our full report.
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