Good morning.
It feels like every day there’s an opportunity to do media criticism about the right wing-misinformation engine on cannabis, which has gone into overdrive in recent days.
There is, perhaps, a correlation there with cannabis stocks soaring. Go figure.
Let’s get to it.
-JB, JR, ZH
This newsletter is 843 words or about a 5.5-minute read.
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💡What’s the big deal?
$TOCK$
Cannabis stocks go haywire 📈
Cannabis stocks are having a moment.
Look no further than Canadian cannabis-and-beverage giant Tilray $TLRY ( ▼ 4.19% ): The stock closed up about 28% on Tuesday, a day after President Trump indicated that the White House is “looking very strongly,” at reclassifying cannabis from the most restrictive Schedule I of the Controlled Substances Act to the less restrictive Schedule III.
But we should note that Tilray, despite being one of the most well-known cannabis companies, doesn’t have much U.S. exposure thanks to its Nasdaq listing. The exchange stipulates that listed companies can’t sell cannabis to American consumers, even in legal states.
Still, the stock is up about 75% over the last five days though down 95% since inception. There’s a long way to climb. It’s one of the few recognizable stocks outside of cannabis, hence it’s a sort of index to how much the public is paying attention to our world, even though it’s far from the correct vehicle to invest in US cannabis. But people are certainly paying attention.
US cannabis companies, which will actually benefit from Trump’s executive order, are skyrocketing, too.
The AdvisorShares Pure US Cannabis ETF, $MSOS ( ▼ 26.91% ) which tracks a basket of U.S. cannabis stocks like Green Thumb Industries, Trulieve, and Curaleaf, closed up 20% on Tuesday. Rythm $RYM ( ▼ 15.39% ), which owns a portfolio of cannabis and THC beverage brands, has gained 60% in the last five days.
What’s next: Some reports indicate that Trump may sign the order as early as today. We’ll know when we know.
For those anxiously checking whether Trump will sign, take solace in the fact that Kalshi has the odds of cannabis being rescheduled before next year at 89%.
📣 Quotable
"It’s been two months since a grand jury began probing how $10 million rightfully belonging to Florida’s Medicaid program was diverted to help Gov. Ron DeSantis defeat recreational marijuana and abortion rights ballot initiatives last year," said a Dec. 15 editorial from South Florida's Sun Sentinel.
"The grand jury’s silence is perplexing. Floridians deserve to see consequences for what looks to be a textbook case of money laundering and potential embezzlement. While those wheels grind slowly, it turns out the scandal is three times greater."
Reporting from the Tampa Bay Times and Miami Herald recently revealed that DeSantis syphoned at least $35 million from health care programs in order to campaign against legalizing cannabis and preserving abortion rights last November — about $25 million more than was previously known.
⏩ Quick hits
Michigan prices hit new low post-Croptober 📉
The average price for an ounce in Michigan dropped to $59.79 in November, in the wake of outdoor harvest season. Historically prices tend to drop in late fall each year, thanks to Croptober, but this is the first time that average fell below $60. Crain’s Detroit has more.
At least 60 Alabama doctors are preparing to recommend medical pot 🧑⚕️
Sixty doctors in Alabama have taken the state's mandatory online training course for medical professionals that intend to recommend medical cannabis. The Alabama Medical Cannabis Commission recently approved the state's first retail licenses and the agency anticipates the first sales to take place next year. AL.com has more.
📺 ICYMI
Yesterday, we hosted “Aligning Banks and Cannabis Operators for the Next Phase of Industry Growth” along with our partners at Shield Compliance.
In case you missed it:
🤝 Deals, launches, partnerships
Ascend Wellness to partner with NJ social equity operator 🤝
Ascend Wellness $AAWH ( ▼ 27.78% ) announced on Dec. 10 that it would be partnering with Mister Jones LLC, providing financial, technical and operational support. The partnership was made possible by recently enacted Assembly Bill A4151 which allows for greater investment opportunities from people and organizations who do not qualify as social equity operators.
🧪 Science & research
Cannabis kills cancer cells 🩺
A new study in Frontiers in Pharmacology finds that a 1:1 combo of CBD and THC kills ovarian cancer cells more effectively together than alone, while mostly sparing healthy cells. Researchers say the cannabinoids work by switching off a key cell-growth pathway that cancers rely on and reactivating PTEN, a natural tumor-suppressor — an early but intriguing signal that cannabis compounds could have anticancer potential beyond symptom relief. Read more.
📰 What we’re reading
My Read on the JAMA Cannabis Review | Doctor Approved Cannabis
Greenlane pivots | Cannabis Musings