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The German government kept the cryptocurrency market on tenterhooks with its sale of state-owned Bitcoin (CRYPTO: BTC) in recent weeks. The process culminated earlier this month, with nearly 50,000 BTC, worth $2.89 billion, dumped in the open market.
One of the most vocal critics of the entire exercise has been Joana Cotar, a member of the German Bundestag. In an interview with Benzinga, she explained the grounds for her disapproval and why this was a "monumental missed opportunity."
The German lawmaker warned that selling the Bitcoin could cost the country billions in future value, which might have been realized by holding it as a long-term strategic asset. "This action sends a concerning signal about Germany’s readiness to adapt to the realities of the 21st-century digital economy," she argued.
The Eastern German state of Saxony carried out the liquidation. In a blog post, authorities cited a legal obligation to liquidate the seized assets if there is a threat of significant price loss.
Cotar criticized this explanation as "flawed" arguing it demonstrates a critical misunderstanding of Bitcoin’s nature. She proposed changing the law to allow government institutions to hold Bitcoin for extended periods, supported by secure storage guidelines and periodic review mechanisms
Like other maximalists in the space, the German politician expressed optimism about Bitcoin's inflation hedge potential due to its fixed supply. Additionally, she praised its decentralized nature, which could provide immunity against geopolitical risks and manipulation by big players.
When Benzinga questioned her about the possibility of Bitcoin becoming a legal tender in a large economy like Germany, the lawmaker said the idea was “worth exploring.”
"Germany could consider creating a regulatory sandbox for Bitcoin businesses, similar to Switzerland’s “Crypto Valley” in Zug, to foster innovation while managing risks," Cotar suggested.
See Also: Peter Thiel, Founders Fund Lead $11M Investment In Pudgy Penguins Parent Company: ‘Excited to Drive the Consumer Crypto Revolution Forward’
Other incremental steps advocated by her were offering tax incentives for clean energy-powered Bitcoin mining and integrating Bitcoin education into financial literacy programs.
"The mid to long-term goal should be to fully integrate Bitcoin into our economy and government operations."
The Bundestag member also had words of praise for Nayib Bukele's pro-Bitcoin measures for El Salvador. She praised initiatives such as Bitcoin bonds and the proposed Bitcoin City and stated that Germany may benefit from some of these laws, suited to its economic circumstances.
But even as voices around the world build support for cryptocurrencies, major financial institutions like the International Monetary Fund continue to push against their widespread adoption. The IMF has warned that adopting cryptocurrencies could undermine the effectiveness of monetary policy, circumvent capital flows, and lead to money laundering.
Cotar dismissed this opposition as "short-sighted." She said that the IMF has failed to understand the real potential of these technologies in addressing issues that it itself wants to solve, such as financial inclusion. She criticized the IMF's support for Central Bank Digital Currencies, seen as a major rival to cryptocurrency technology at this moment.
The pro-cryptocurrency legislator added that the first country from the Organisation for Economic Co-operation and Development group to embrace Bitcoin as a strategic reserve asset will likely gain a significant first-mover advantage.
"The country could experience an influx of tech talent and innovation, potentially becoming a hub for Bitcoin startups," she opined. "I believe holding Bitcoin as a strategic reserve could provide leverage by reducing dependence on the U.S. dollar."
Joana Cotar was a member of the far-right party, Alternative für Deutschland (Alternative for Germany), until 2022. She is currently an independent member of the Bundestag.
The office of the Saxon State Chancellery is yet to respond to Benzinga’s request for comment on the matter.
These insights set the stage for deeper discussions at the upcoming Benzinga Future of Digital Assets event on Nov. 19.
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Image Credit: Team Joana Cotar
The investing portfolios of former Speaker of the House Nancy Pelosi and Vice President Kamala Harris may differ, with a preference of individual stocks versus exchange traded funds.
What Happened: With President Joe Biden dropping out of the 2024 election, Harris is the favorite to secure the Democratic Party nomination and has received endorsements from many people, including Pelosi.
While they are both Democrats and key political figures, Harris and Pelosi differ when it comes to investing.
Pelosi and her venture capitalist husband Paul Pelosi prefer to buy individual stocks and options, often in the technology sector. Compare that to the investment style of Harris and her husband Doug Emhoff, who have their money parked in mutual funds and ETFs.
Benzinga recently polled readers to see which investment style could be better.
"Kamala Harris' investments include mutual funds and S&P 500 holdings, while Nancy Pelosi and her husband have purchased stocks like Nvidia, Apple and Tesla. Who do you think is a better investor?" Benzinga asked.
The results were:
The Benzinga Government trades page for Pelosi shows recent purchases of NVIDIA Corporation (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO) and Palo Alto Networks (NASDAQ:PANW).
According to a report from Barrons, Harris and Emhoff have between $2.9 million and $6.6 million in investments and cash based on financial disclosures. Among the investments include Harris having between $250,000 and $500,000 in a Target Date 2030 fund and between $100,000 and $250,000 in an S&P fund and large-cap growth fund.
Emhoff has investments in several ETFs, including the iShares Core MSCI EAFE ETF (BATS:IEFA).
A Quiver Quant report shows the Vanguard Growth ETF (NYSE:VUG) and the Vanguard Value ETF (NYSE:VTV) as two of the largest holdings by the vice president and first gentleman. The Vanguard Growth ETF is heavily weighting in technology stocks, making up 60% of the ETF.
One thing the two political figures have in common with their investments is a preference to large cap stocks and not having large weightings of small cap stocks in their portfolios.
Why It's Important: The net worth of Harris and Emhoff pales in comparison to her 2024 election opponent Donald Trump, who is a billionaire thanks to his investments and large stake in Trump Media & Technology Group (NASDAQ:DJT).
"Does the difference in wealth between Kamala Harris and Donald Trump make her a more or less appealing candidate?" Benzinga asked.
The results were:
The poll found that potential voters don't care too much that Trump is worth significantly more than Harris. A larger amount of respondents said Harris is more appealing than less appealing based on her lower wealth amount.
Benzinga also asked if people were surprised by the $2.9 million to $6.6 million figure that is being reported for Harris and her husband's wealth.
The results were:
The poll results were close, with the majority of respondents indicating that Harris’s wealth was in line with their expectations. Additionally, about one-third of the respondents felt that the amount was less than they anticipated.
Disclosures of investments for political figures has been a hot topic in recent years, with calls to ban members of Congress from trading stocks and options. The significant allocation to ETFs and mutual funds indicates that Harris has not been actively buying and trading individual stocks like some members of Congress and their spouses.
Harris and Pelosi may have investment commonalities of preference for technology and large-cap stocks, while both also mostly avoid small-cap stocks.
Interested in learning more about small-cap stocks and ETFs? Then you don’t want to miss Benzinga Small Cap Conference, Oct. 10 in Chicago. Click here for more information.
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The study was conducted by Benzinga in July 2024 and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 172 adults.
Image created with photos from Shutterstock and Midjourney.
In a recent fireside chat hosted by Pablo Zuanic, senior equity analyst, former U.S. Rep Ed Perlmutter shared his insights on the evolving cannabis landscape.
With Congress grappling with cannabis rescheduling and banking reforms, Perlmutter's insider knowledge offers a crucial perspective for cannabis investors.
"When I first introduced this in 2013-2014, I had to deal with the chuckle factor," said Perlmutter, often hailed as the founding father of the SAFE Banking Bill.
The recent passage of a modified version, SAFER, in the Senate Banking Committee marks progress, yet the path forward remains uncertain. "We're in campaign season now," Perlmutter warned, underscoring the time constraints.
During the chat, Perlmutter delved into the intricate process of cannabis rescheduling initiated by President Joe Biden. The administrative procedure, bound by the Administrative Procedures Act, involves specific steps and timelines for public comment and hearings.
Perlmutter expressed optimism about Vice President Kamala Harris potentially taking the helm. Her prior sponsorship of the SAFE Banking Bill signals a strong understanding and support for cannabis reforms.
However, the upcoming elections introduce uncertainty. Perlmutter outlined a scenario where the current administration's initiatives might face challenges depending on the election outcomes.
He also highlighted the role of key players in Congress, such as Senate Majority Leader Chuck Schumer whose efforts to integrate cannabis reforms into broader legislative packages, such as the National Defense Authorization Act (NDAA) or a financial services bill could be pivotal. "If he just brought it to the floor, it would pass," Perlmutter said, reflecting on the strategic legislative maneuvers necessary to secure passage.
Perlmutter discussed the potential impact of a GOP victory, suggesting it could stall or reverse progress on cannabis reforms. He noted that if Republicans take the White House, there could be a shift in priorities away from cannabis legislation.
Perlmutter remains optimistic about cannabis banking reform, possibly
through a larger financial services bill incorporating cryptocurrency regulations. "There is a lot of discussion...where [banking reform] would be added to a financial services piece of legislation," he said.
Although cannabis rescheduling is in motion under the Administrative Procedures Act, the primary focus for Democrats would be winning the elections. He indicated that VP Harris and her potential running mate would prioritize election efforts, pointing out that cannabis policy is a crucial issue for many voters, enhancing its role in any forthcoming campaign strategy.
The methodical approach taken by the Biden administration ponders the question of whether rescheduling can happen in time or not. Perlmutter acknowledged the complexity of the situation. "From the White House's point of view and the HHS, they've done what they could do." He explained that the next phases are dictated by the Administrative Procedures Act, which requires specific timeframes for comments and hearings.
Perlmutter suggested a nuanced approach to cannabis policy even under conservative leadership. Discussing the hypothetical scenario of a Trump presidency, Perlmutter pointed out that despite Jeff Sessions rescinding the Cole Memo, the FinCEN guidance remained intact. "The president could have said to Secretary Mnuchin, let's get rid of the FinCEN guidance. And he didn't."
Regarding the future, Perlmutter expressed cautious optimism. "The clock is ticking, no question about it. But at least it's ticking." He highlighted that despite the lengthy process, the momentum towards rescheduling is significant and unprecedented in over five decades.
Find the complete conversation here.
Read next: Harris Vs. Trump: Will Cannabis Rescheduling Survive Biden's Exit? Analyst On Potential GOP Victory
These issues will be among the hot topics at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.
Photo: AI-generated image.
Securing prime real estate for cannabis operations is a nuanced endeavor, requiring expertise and a keen understanding of local regulations. Meilad Rafiei, CEO of WeCann, a cannabis entitlements, licensing and property brokerage firm, shares insights into this intricate process.
Rafiei explained that finding the best cannabis property starts with thorough research and a feasibility study to identify cannabis-friendly municipalities.
Digital mapping tools like ArcGIS help highlight viable properties and create a detailed property database. The next steps involve conducting inspections and negotiating terms with landlords while ensuring compliance with all local regulations.
Thus, finding the right location for cannabis operations, whether retail or cultivation, involves thorough research and strategic planning. "Identifying as many properties as you can that qualify is crucial," says Rafiei.
For retail, key factors include good frontage, ample parking, and proximity to reputable retail neighbors. "Retailers want good signage and shouldn't be tucked away in industrial areas," he adds.
For cultivation, the priorities shift. Being off the beaten path and ensuring robust security measures are essential. However, both retail and cultivation face challenges related to construction costs and timelines.
"We create maps that highlight all viable properties within a municipality," Rafiei explains.
These maps are available via a subscription service, enabling clients to use them independently or with WeCann's assistance. The maps help identify optimal locations based on zoning, demographics, and the presence of complementary businesses.
Understanding local regulations is another critical aspect. WeCann develops feasibility reports that break down tax implications, operational costs, and timelines for different municipalities.
These reports also include economic factors like demographics and complementary businesses. "If a client wants to be near a 7-Eleven, we can customize the map to highlight those specific businesses," Rafiei noted.
Winning a lottery for a cannabis license involves more than just luck. Rafiei stresses the importance of thorough preparation and understanding of the local political agenda.
"We've submitted about 200 licensing applications across nearly 60 municipalities. We've experienced a little bit of everything when it comes to politics and regulations," he noted.
"You need a strong business plan and an operational work plan," he advises. Community benefit plans that genuinely address local needs can also significantly enhance an application's chances of success.
Once a company secures a property and state approval, navigating municipal requirements becomes the next hurdle.
"Municipalities often demand a detailed business plan, including operational workflows," explained Rafiei. Additionally, municipalities frequently request a community benefit plan, especially in competitive licensing scenarios.
Read Also: This Cannabis Lender Is Sitting On A Stack Of Capital: 100% Dividends Meet Equity-Like Returns
Converting properties for cannabis use presents unique challenges. "It's usually better to find existing buildings rather than starting from scratch," Rafiei says, citing post-COVID construction delays and increased costs.
Yet, properties with deferred maintenance can be problematic, underscoring the need for detailed inspections. For example, securing adequate power is a significant challenge in cannabis real estate.
"Property owners might claim they have 12000 amps, but you can't just take their word for it," Rafiei explained. Misjudgments can take up to 18 months. "It's crucial to double-check how power is split and delivered to avoid unforeseen issues," he added.
Securing cannabis real estate involves significant legwork, starting with cold-calling property owners who may know little about the cannabis industry. "Winning them over is part of the game," Rafiei explains.
Building credibility often begins with educating property owners about market trends.
Understanding local dynamics is also crucial. Rather than delving into the historical context of cannabis, Rafiei focuses on current events and regulations in the property owner's city and state. "Once they realize their city council and mayor support cannabis businesses, it eases their concerns," he notes.
These markets require navigating evolving regulations and building local relationships. Establishing a connection through relevant, localized information helps build trust. Financial discussions are also inevitable in this process. Rafiei stresses the importance of clear communication about potential earnings and risks.
"Property owners take on additional risks with cannabis tenants due to federal laws," he says. Addressing these concerns, while highlighting the financial benefits such as increased foot traffic for surrounding businesses, is essential. "Cannabis tenants can positively impact nearby retailers," he adds, underscoring the broader economic advantages of retail cannabis.
Rafiei highlights that finding the right property for cannabis operations is a full-time job.
"You can't just do this part-time; it requires dedicated effort," he asserts. Engaging a firm like WeCann, with specialized knowledge and resources, can be costly upfront but saves significant time and money in the long run.
As Rafiei sums it up, "Time kills deals. Having the right team can make all the difference."
Read Next: Brick-And-Mortar Investments Build Cash Flow And 11% Price Uptick For This Cannabis Stock
These issues will be among the hot topics at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.
Photo: AI-generated image.
When Drew Bledsoe left Washington State University, he joined one of the highest elections in sports: number one overall NFL draft pick.
A few years later, Bledsoe found himself in a position he never thought he'd be in as a backup to Tom Brady.
Bledsoe shared his journey and rollercoaster experience in the NFL with Benzinga founder Jason Raznick in a recent episode of The Raz Report podcast. Bledsoe, who now owns and operates three wineries in his home state of Washington, spoke candidly about the challenges he overcame as a football player and how that has shaped the rest of his life and now business career.
Quoted: "It's life, right?" Bledsoe said. "In life shit's going to come your way, positive or negative, you can't control what's coming at you, you can control what you do with it. That's the deal with me, I tried to handle it the right way at each juncture to the best that I could and because of that I ended up with a great relationship with all of the cities I played in and great relationships with all these teammates."
Bledsoe was the starting quarterback for the New England Patriots for eight seasons before an injury sidelined him, leaving the door open for Brady to take over. Before the 2001 season, Bledsoe signed a then-record $103 million contract for 10 years with the Patriots.
Set Backs: But, just two games into the season, Bledsoe was injured on a hit by New York Jets linebacker Mo Lewis that sheared a blood vessel in Bledsoe's chest, causing a hemothorax that led to rapid blood internal blood loss. If the trainers hadn't caught the injury soon after the conclusion of the game, Bledsoe's life could have been in danger.
Brady stepped in for Bledsoe and ended up taking the Patriots to the playoffs where the team would eventually win the Super Bowl. Bledsoe, who stepped in for an injured Brady during the AFC Championship game, spoke about the difficulties of being sidelined for the Super Bowl.
"To have a chance to come in and play in that game [AFC Championship] was great," Bledsoe said. "The thing that really sucked about it though, was I came in and played, we won, then we're going to the Super Bowl then Tommy's back in for the Super Bowl. I was like man this is bullshit, it's like you're giving a starving man a snack. You get to go play a little bit, then you get to the ultimate game and no dice."
Second Chances: After that season, the Patriots traded Bledsoe to their division rival the Buffalo Bills, giving Bledsoe a chance to rebuild his career following the injury-shortened season. Bledsoe threw for more than 4,000 yards in the 2002 season and earned a trip to the Pro Bowl, the NFL's All-Star Game.
Bledsoe went on to play for the Dallas Cowboys before retiring in 2006. Since then, Bledsoe moved back to Walla Walla, Washington, his hometown and began a new career that comes with a significantly reduced likelihood of serious injury: winemaking.
Bledsoe teamed up with Josh McDaniels (not the NFL coach), who is also from Walla Walla, and has founded three wineries in the region: Bledsoe McDaniels Winery, Doubleback and the Bledsoe Family Winery. Bledsoe realized while playing football that his small hometown of Walla Walla was producing some of his favorite wines, which led to his passion for winemaking.
Watch the full interview with Bledsoe here.
Editor’s note: This story has been updated with additional details from Hunterbrook Media regarding a request for comment to Nano Nuclear ahead of the publication of its short report.
Executives at Nano Nuclear Energy Inc (NASDAQ:NNE) responded to allegations made in a July short report that sent its share price spiraling downward.
Hunterbrook Allegations: Hunterbrook, a hedge fund that doubles as an investigative news outlet, published a report ridiculing the company on July 19.
The report accused Nano Nuclear, a portable nuclear reactor company in its research stage, of having “no revenue, no products, ‘laughable timelines,’ [and] part-time executives.” Hunterbrook’s article said that the development of nuclear reactors would take much longer than NNE’s timeline.
Nano Responds: Jay Yu, Founder and Chairman of Nano Nuclear Energy, responded to the allegations made by Hunterbrook in an email to Benzinga.
“We're not sure what we did to deserve any attention from these so-called ‘journalists' who also short sell the stocks that they write about. Since there are clearly ulterior motives none of what is said can be taken seriously, by anyone,” Yu said. “We're proud that NANO is being built at the right place at the right time, contributing to a sustainable energy future.”
James Walker, Chief Executive Officer of Nano Energy, responded to Hunterbrook’s assertion that Nano’s timelines are unrealistic.
"NANO has followed the guidance of the U.S. Nuclear Regulatory Commission (NRC), who currently estimate and advise a 40-month timeline from submission to the issuance of a license for NANO's micronuclear reactors,” Walker said. “This does not even consider potential timing efficiencies stemming from the ADVANCE Act, which was recently signed into law, and which looks to streamline the regulatory process and shorten licensing timeframes.”
“NANO has consulted and is working with NRC veterans with decades of experience and feels comfortable with its development and regulatory timeframes, which are of course subject to risks that we've been very clear to our investors about,” Walker added.
Also Read: Google’s Cookie Monster: Why The Tech Giant’s U-Turn Is Making Waves In Ad Industry
Walker said that the named experts in the report (Allison Macfarlane, a former chair of the FEC, and Paul Dorfman, a visiting fellow at the University of Sussex) are “known to be anti-nuclear and would never say anything good about any nuclear venture.”
Walker went on to say that the authors of the short report “lack education” on nuclear and that microreactors historically took two to three years to license, not 10 to 15 (Hunterbrook reported on an even longer timeline of 15 to 20 years).
The report also claimed that Nano did not respond for comment, which Yu disputed.
“NANO has no missed calls, messages or emails from Hunterbrook through any of our multiple channels. If they did reach out, we would have educated them on all these topics, but they clearly have ulterior motives, which is well documented,” Yu said.
Hunterbrook Media provided Benzinga with two emails it said were sent to Nano Nuclear earlier in July requesting comment.
Yu defended Nano executives’ part-time employment as “sweat equity,” saying that they will be employed full-time when the company is capitalized further.
Yu also referenced Hunterbrook’s short report on Nuscale Power Corp (NYSE:SMR) in June.
“We can all see how that turned out for Hunterbrook,” Yu said. Nuscale shares are trading nearly 30% higher since Hunterbrook’s report.
Price Action: Nano Nuclear went public in May, rising over 500% to a market capitalization of over $600 million.
Its share price declined over 10% after Hunterbrook released its report on July 19 before rebounding later in the day and closing near its open.
NNE was down 3.01% to $15.27 on Tuesday, falling nearly 20% through the first two days of the week. It is still trading more than three times higher than it did during its IPO, though down from its peak of $37.51.
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Image created using artificial intelligence via Midjourney.
Each week, Benzinga's Stock Whisper Index uses a combination of proprietary data and pattern recognition to showcase five stocks that are just under the surface and deserve attention.
Investors are constantly on the hunt for undervalued, under-followed and emerging stocks. With countless methods available to retail traders, the challenge often lies in sifting through the abundance of information to uncover new opportunities and understand why certain stocks should be of interest.
Here’s a look at the Benzinga Stock Whisper Index for the week of July 26:
The AES Corporation (NYSE:AES): The global power company saw strong interest from readers during the week. The interest comes ahead of second-quarter financial results set for Aug. 1. Analysts expect the company to report earnings per share of 37 cents and revenue of $3.19 billion, compared to 21 cents and $3.03 billion respectively in last year's second quarter. The company has beaten analysts' earnings per share estimates in three straight quarters and missed analysts' revenue estimates in three straight quarters.
AES recently launched the Kuihelani Solar-plus-Storage facility in Hawaii, which will reduce Maui's reliance on oil. The company has secured a 25-year purchase agreement with Hawaiian Electric for generated power from the facility.
The stock has also seen strong interest from hedge funds in recent quarters, which comes as the company has exposure to clean energy and artificial intelligence. In June, the company announced a strategic partnership with AI Fund, which is working to increase artificial intelligence being used to accelerate the energy transition.
"By combining our expertise of the power sector with AI Fund's expertise in artificial intelligence, we are uniquely positioned to lead the energy transition with AI-powered innovations that will benefit not only our portfolio but the entire industry," AES CEO Andres Gluski said.
The Benzinga Pro chart below shows AES stock down 1.6% over the last five days.
The Kraft Heinz Company (NASDAQ:KHC): The food and beverage company saw strong interest from readers during the week, which comes ahead of second-quarter financial results. The company will report Q2 results on July 31. Analysts expect the company to report earnings per share of 74 cents and revenue of $6.55 billion, compared to 79 cents and $6.72 billion reported in last year's second quarter. The company missed earnings per share estimates from analyst in the last quarter, which came after a streak of more than 10 straight quarters of beating analysts' estimates. The company has missed revenue estimates in three of the last five quarters.
Analysts have been lowering their Kraft Heinz Company stock price targets ahead of the quarterly results.
Kraft Heinz shares were up 1% in the last five days as viewed on the Benzinga Pro chart below, but remain down 10% year-to-date.
Illumina Inc (NASDAQ:ILMN): The genetics company saw strong interest from investors, which comes ahead of quarterly earnings and a company update that could put shares in the spotlight in the month of August.
Illumina will report second-quarter results on August 6. The company is also scheduled to hold a "Strategy Update" company event on Aug. 13 with members of the executive team presenting and a question-and-answer segment to follow.
In July, Illumina announced the acquisition of Fluent Biosciences. The acquisition could be a key topic during the August event.
Illumina shares were nearly flat over the last five days as seen in the Benzinga Pro chart below. Shares are down over 15% year-to-date in 2024.
Charles Schwab Corporation (NYSE:SCHW): The financial company saw strong interest from investors, which comes shortly after second-quarter financial results were reported. Charles Schwab reported second-quarter revenue and earnings per share that came in ahead of analysts' estimates.
In the quarter, the company saw brokerage accounts up 4% year-over-year to a total of 35.6 million. Year-to-date enrollments for all wealth solutions are up around 30% according to CEO Walt Bettinger.
Analysts were mixed on the Charles Schwab quarterly results.
"While the headline results were largely in line, underlying trends across net new asset growth, interest earning assets, the lack of short-term funding paydown, and lingering (but improving) cash sorting were disappointing," JPMorgan analyst Kenneth Worthington.
Worthington said he is "not yet seeing the light at the endo of the tunnel" for Charles Schwab when it comes to debt paydown and net new asset growth re-acceleration for a "return to normalization."
Charles Schwab shares were up 3.4% over the last five days, as seen on the Benzinga Pro chart below.
Schlumberger (NYSE:SLB): Interest was high for the week in Schlumberger, which is the largest oilfield service firm. The company recently reported second-quarter results, which included revenue of $9.14 billion up 13% year-over-year and ahead of Street consensus estimates of $9.08 billion.
Schlumberger reported revenue up double-digits across three of its four reporting segments in the second quarter. Strength in the Middle East & Asia regions helped offset weakness in the North American market for the quarter.
"Looking ahead to the second half of the year, we expect ongoing momentum in the international markets, strong digital sales, and our cost efficiency programs will enable us to expand margins and deliver our ambition to grow full-year adjusted EBITDA in the mid-teens," Schlumberger CEO Olivier Le Peuch said.
Peuch added that the company has a "long tailwind of growth opportunities."
Schlumberger also recently announced the co-development of an AI-driven digital platform for Aker BP. The project will increase production and lower costs for Aker BP and could lead to more interest in Schlumberger's AI-driven products.
Stay tuned for next week's report, and follow Benzinga Pro for all the latest headlines and top market-moving stories here.
Read the latest Stock Whisper Index reports here:
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A new study utilizing data from Leafwell, a telehealth platform that provides access to licensed physicians, sheds light on medical marijuana patients under 21, who are often overlooked in research. The study details the frequency and rate of teen and young adult cannabis patients in the U.S.
Using data from 2019 to mid-2023, the study analyzed 13,855 patients, of whom 5.7% were minors and 94.3% were young adults. Leafwell, which operates across 34 states, helps patients receive their medical cards, has a substantial patient database.
Key findings include:
Read Also: 76% Of Primary Care Patients Use Cannabis For Symptom Management, UCLA Study Finds
The study provides a step toward understanding the demographics and medical conditions of pediatric medical marijuana patients.
It is important to note that different state policies might have impacted the results. For example, it's plausible to assume that patients with anxiety living in a state where this condition is not considered qualifying for medical marijuana might list another condition to qualify. "Our finding that anxiety is the most common secondary condition for using medical cannabis does somewhat speak to this phenomena," the study authors pointed out.
Other limitations include the reliance on self-reported data and the sample size that may not fully represent the entire population of medical marijuana users under 21.
"This study underscores demographic distinctions between minor-aged medical cannabis patients and young adults," wrote the authors. "There is a need for comprehensive clinical research addressing efficacy, safety, and tailored guidelines specific for pediatric medical cannabis patients. Such insights are pivotal for healthcare providers and policymakers in navigating medical cannabis treatment protocols."
According to a 2017 study published in the National Library of Medicine, relief from chronic pain takes the top spot. Other studies concur with this finding. Others find anxiety to be the most common condition, for which medical marijuana is used. Overall, for adults, chronic pain and anxiety are the main reasons for turning to cannabis. This is even the case with recreational users, who often consume it to treat various conditions but don't consider themselves medical marijuana patients.
As of 2023, 38 states, three territories and the District of Columbia allow the use of medical marijuana products. There are around 3.87 million registered medical marijuana patients across the U.S.
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Learn all about the future of the cannabis industry at the Benzinga Cannabis Capital Conference this October in Chicago. Hear directly from key industry players and policymakers. Get your tickets now by following this link.
Photo: Tim Mossholder on Unsplash
SHF Holdings, Inc., doing business as Safe Harbor Financial (NASDAQ:SHFS) — a facilitator of financial services and credit solutions for the cannabis industry, has partnered with BIPOCann, a Denver-based consulting firm dedicated to aiding social equity and minority entrepreneurs in the cannabis sector.
Under this partnership, BIPOCann will offer its full membership benefits, valued at $600, to all of Safe Harbor’s existing social equity clients at no additional cost. Additionally, BIPOCann members will receive a 75% discount on application fees for financial services, complementing Safe Harbor's existing social equity discount program.
"For years, access to reliable banking services has been one of the biggest challenges for small businesses in the cannabis industry," stated BIPOCann founder and CEO Ernest Toney.
"I'm excited for BIPOCann's partnership with Safe Harbor to mitigate that challenge for social equity entrepreneurs and business owners across the country. This partnership strengthens our collective abilities to serve social equity operators with financial resources and tools that empower business development and growth."
Earlier this month, Safe Harbor successfully exited a $3.1 million loan previously in default.
In addition to the full repayment of the principal, the company received $202,175 in accrued interest, all of which will be reallocated into its lending and credit line capacity.
Read Also: EXCLUSIVE: Colorado Cannabis Gets A Boost As 3 Operators Land $550K In Credit Lines
To further support minority-owned businesses, Safe Harbor is launching a new webinar series focused on social equity and small operators across the country. The first session – Navigating Social Equity in Cannabis with BIPOCann & Safe Harbor Financial: Cannabis Banking Solutions – will take place on Wednesday, August 21, 2024, featuring participation from BIPOCann representatives and members.
This monthly series aims to provide valuable insights and resources on rescheduling, legal, lending, and capital topics, to help these businesses overcome barriers and accelerate growth.
Sundie Seefried, CEO of Safe Harbor, also commented on the partnership, "We're excited to team up with BIPOCann to help create an inclusive, equitable cannabis industry. By combining our expertise and resources, we aim to provide these businesses with the financial support and tools they need to thrive. This collaboration not only reinforces our dedication to social equity but also sets a benchmark for the industry, demonstrating how targeted support can drive meaningful change."
Price Action: Safe Harbor shares closed Wednesday market share 3.98% lower at 64 cents per share, according to Benzinga Pro.
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Pro tip: Learn all about the future of the cannabis industry at the Benzinga Cannabis Capital Conference this October in Chicago. Hear directly from key industry players and policymakers. Get your tickets now by following this link.
Photo: Courtesy of ShutterstockProfessional via Shutterstock
An early exposure to financial markets, a strong desire to build on his father’s legacy, and an innovative approach to an archaic industry helped turn Robert McEwen into one of the most successful mining executives.
After completing a round of financing for an advance-stage copper project in Argentina, McEwen spoke to Benzinga about his beginnings, Goldcorp‘s transformation, and plans for his current venture, McEwen Mining (NYSE:MUX).
After contracting polio in WW2, Robert's father, Donald McEwen, turned to business, becoming a stockbroker and a fund manager.
"Our dining room table was always a discussion about gold, and he had me charting stocks when I was around 10 years old," Robert noted, stating that he bought his first stock when he was 12.
"Father took a keen interest in gold, looking at the IMF numbers and fund flows, and I guess by osmosis, I picked up that gold bug. That is how hard assets became a mantra of my life," he added. After getting an MBA, Robert spent time at Merril Lynch before returning to work in the family business.
McEwen's father structured Goldcorp as a closed-end investment company, allowing institutions to circumvent the prohibition against having exposure to foreign shares and gold bullion.
"It was an exciting time. This approach went viral. It was an innovation in the marketplace, and by the end of the 1970s, gold ran up to $850 an ounce."
Following his father’s death, McEwen took over and began making radical changes, taking advantage of marketplace dislocations caused by holding companies falling out of favor.
"We had mining companies trading at two to three times NAV, and I thought – we are trading at a 50% discount, I could make a mining company stronger if I merged with it. So I jumped in and bought control of two mining companies and then rolled the holding company into a mining company," McEwen said.
McEwen's experience of navigating of turbulent markets, hostile takeover attempts, and personal threats gave him the tools to recognize and take advantage of burgeoning opportunities like the Internet and make mining a more exciting industry.
"We were exploring the mine at Red Lake and found quite a bit of gold, but our head of operations didn’t know how big the deposit would be nor how long it would take to find out. Meanwhile, I enrolled in a course at MIT through a Young Presidents organization. On the second day, they started talking about Linux and open-source code, and all of a sudden, a light bulb went off, and I realized that’s how I’m going to reach the world."
Contrary to other mining firms that guarded their geological data, McEwen uploaded it all to the Internet, offering a prize of half a million dollars to the person with the best idea.
"We were looking for people to tell us where to find the next six million ounces of gold. It was the number I derived from the neighboring mine, the Campbell Mine, that produced that gold, and we were basically in the same ore body."
Over 1,500 contestants looked at the data, and the results redefined the geological interpretation of the deposit.
"We found over $3 billion worth of gold," he said, chuckling that nuggets don’t fall far from the ore body; the creativity gene runs in the McEwen clan.
Owing to successful exploration and a thorough restructuring of the Red Lake asset, by 2004, Goldcorp produced 628,000 ounces of gold for $115 per ounce, ending that year with 5.2 million ounces in reserves. The firm was among the lowest-cost large-scale miners globally when McEwen decided to step down as CEO.
"We had gone from $50 million to $8 billion in a market cap, and I thought about whether we could drive that type of growth. That was going to get harder and harder, and I was getting tired of corporate governance," he said before clarifying that having corporate governance is necessary but cumbersome.
"We had a ton of money in the bank, no debt, and were one of the lowest-cost gold producers in the world. It was a good time to step away," he added.
During the Goldcorp days, McEwen invested heavily in the junior mining sector.
"It was a listening post to what was happening in the industry. I thought we could bring them in, but some of these companies grew quite quickly, so I instead sold the positions to pay for the development of the new Red Lake Mine," he noted.
Accordingly, after stepping down as CEO, he constructed new roles for his involvement, setting the stage for a new venture.
"I wanted anywhere between 10% and 30%, not to serve on board, first right of refusal on future financing, veto on major acquisitions, divestitures, and M&A. I wanted a safeguard against them doing something that I thought was foolish."
Eventually, the consolidation of these stakes created McEwen Mining.
“I put two of the companies together where I had 25 and 27 percent, with interesting projects in the United States, Mexico and Argentina.”
McEwen Mining has four mines in production, two in development, and one advanced exploration project. Currently, the market focuses on copper, with numerous institutions like Bank of America predicting a supply shortfall of 5 million tons by 2030.
McEwen plans to mine copper at the Los Azules project near San Juan, Argentina, through a subsidiary, McEwen Copper.
"I haven’t heard that copper is new gold, but I have heard it is new oil. I like to compare the prices and calculate the gold equivalent. The size of the gold equivalent resource at Los Azules changes daily with the price fluctuations. Still, right now, it would equal around 64 million gold ounces of deposits – which is a very big deposit, and our all-in-sustaining just around $925, and it is for a 27-year mine life, and that’s only mining 40% of the resource we know."
Various manufacturers are following McEwen, rushing to acquire copper before anticipated shortages hit the market.
"The second-largest shareholder in our copper project is Stellantis (NYSE:STLA), the fourth-largest car manufacturer in the world. Some metals are essential to modern technologies, and if we’re sourcing them from countries we don’t have good relationships with, we have to find new sources," McEwen said, clarifying that President Javier Milei‘s new policies would add up to over a billion of dollars in net present value to the project.
Junior miners often look the same, and hundreds, if not thousands are out there. Still, McEwen has advice on how to look for nuggets.
"Investors should be aware that there is cyclicality and seasonality. They can come together, as there is a seasonal pattern in commodity prices. You might want to buy during the tax-selling period at the end of the year, or you might want to buy in the summer. In the fall, precious metals usually do better," he said. "I try to avoid companies that sell royalties. I just feel that it’s like the siren on the rocks that beckons the sailors. That’s happening to some producers – they give much of their future margin."
As a prominent figure in the mining community, McEwen said he often gets pitched ideas.
"The first thing I ask is, how much have you committed personally? Have you loaded up with options or mortgaged your house?" McEwen thinks it is important to have skin in the game.
Carrying the title of Chief Owner Officer, McEwen is proud of putting his capital behind his ideas.
"Between McEwen Mining and McEwen Copper, I have personally invested $225 million. That’s my cost, and I take a dollar a year in salary. I’m committed to seeing this grow."
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Photo courtesy of McEwen Mining.
By Javier Hasse via El Planteo
The Terraflos Group, renowned for its investments in technology and biology aimed at harnessing the power of plants, has announced a strategic investment of $2 million in the Peruvian company Nutri Co., El Planteo has learned exclusively. This investment will not only bring capital but also Terraflos’s vast experience and resources, supporting Nutri Co.’s growth and international expansion. The first notable product from this Nutri Co. line is a cannabis-infused cereal bar.
Nutri Co, which uses artificial intelligence to create healthy foods, has experienced explosive growth over the past year, leading the market in Peru and expanding to Mexico and Chile. With this investment, the company plans to extend its presence to Colombia and Argentina next year, capturing the attention of major retailers and consumers in new territories.
Carlos Noceda, co-founder of Nutri Co, expressed his excitement: "We are thrilled to partner with Terraflos. This investment will allow us to accelerate our growth and expand our operations, launching new products that enable us to continue democratizing access to nutritious products for more people."
Facundo Garretón, founder of Terraflos Inc., added: "We see a great opportunity in Nutri Co to support a company aligned with our mission of improving health and wellness through natural, sustainable, and science-based products. We are eager to collaborate closely and help Nutri Co achieve its global goals."
Additionally, Daniel Núñez, co-founder of Nutri Co, commented: "Terraflos’s support not only validates our vision and business model but also provides us with the resources needed to continue innovating and expanding our reach. We are ready to bring our products to more consumers and make a positive difference in their lives."
Among the key projects of this collaboration is the development of cannabis-based foods and other innovative functional ingredients developed in the laboratories of Caliz.bio, another company linked to the Terraflos Group. The production of foods in Colombia through Nutripharma, also affiliated with the group, is also planned.
The partnership between Terraflos and Nutri Co not only marks a strategic milestone for both companies but also signifies a new chapter in the evolution of the health and wellness industry. With a shared vision of innovation and excellence, these companies are poised to transcend borders and redefine what is possible in the pursuit of a healthier and more fulfilling life.
Image courtesy of Terraflos
This article is from a Benzinga partner website. It does not represent Benzinga’s reporting and has not been edited for content or accuracy. The content was partially produced with the help of AI tools and was reviewed and published by El Planteo editors.
In the latest episode of Benzinga’s Cannabis Insider podcast, co-hosts Patricio Liddle and Abbey Higginbotham welcomed Caleb Counts, CEO and co-founder of Connected Cannabis Co. This episode offers an in-depth look into how Counts' personal journey has shaped one of the most recognized brands in the cannabis industry, celebrated for its premium strains and significant connections with the music world.
Starting from modest beginnings, Counts shared his evolution from selling his first bag of weed at an early age. His disappointment with a Sacramento dispensary’s poor quality and customer service was the catalyst for launching his own venture. “I opened up my first spot six months later,” Counts said, making a rapid entry into a burgeoning industry that lacked sophisticated operations at the time.
Under Counts’ leadership, Connected has developed popular strains like Biscotti and Gelato, which have become favorites among prominent artists such as ASAP Rocky and Travis Scott. Counts detailed a strategy of collaborating with influential figures in the music industry, which helped propel their strains into the limelight. “It was a little bit of luck, right place, right time and TMZ,” he told Benzinga, recalling how a TMZ report featuring their product unexpectedly boosted their profile.
Counts also touched on sustainability, a core component of Connected’s operational philosophy. The company has implemented significant sustainable practices, from optimizing cultivation processes to reducing plastic use. “We’ve found a local company…willing to take all of our used grow medium,” he shared.
Counts also talked about the company’s expansion into markets beyond California, including Arizona and Florida, and the unique challenges and opportunities each state presents. The regulatory environment and cultural differences make each new market a distinct project, but Counts notes that Connected has consistently proven its adaptability. In Florida, particularly, the partnership with Trulieve Cannabis (OTC:TCNNF) has been instrumental in navigating the state’s medical-only regulatory framework and establishing a market presence.
Read Also: California’s First Cannabis-Friendly State Fair With On-Site Sales And Consumption
As regulatory landscapes shift, Counts remains optimistic yet realistic about the challenges that pervasive taxation and inconsistent enforcement pose to the industry. His forward-looking approach continues to drive Connected towards further growth and expansion, particularly into states like Michigan and potentially New York. “Michigan, get ready,” he said, hinting at imminent plans to introduce Connected and Alien Labs products to the state.
To dive deeper into more trends and challenges in the industry, from regulatory hurdles to the importance of authentic brand-building, watch the full interview on Benzinga Cannabis' YouTube channel.
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La Rosa Holdings Corp (NASDAQ: LRHC) announced that it has entered into a non-binding Letter of Intent to acquire Celebration Corporate Center LLC.
The Company expects to acquire this entity through its wholly-owned subsidiary, La Rosa Property Management LLC (“LRPM”).
As a result of the acquisition, LRPM will become a direct owner of Celebration Corporate Center LLC and its commercial real estate located in Celebration, Florida.
Also Read: EXCLUSIVE: La Rosa Reports 15% Growth in Q2 Transaction Volume
LRPM specializes in property management services for single-family residential property owners and manages a diverse portfolio of properties across Florida.
The Company anticipates finalizing the transaction in the third quarter of 2024.
According to their management, since its grand opening in 2008, Celebration Corporate Center has been Celebration’s only full-time executive center offering both full-time offices and virtual office solutions.
Celebration Corporate Center specializes in virtual offices, executive suites, reception services, and meeting room rentals. It has 32 full-time offices and 248 virtual offices.
Joe La Rosa, CEO of the Company, commented, “LRPM properties under management increased by 17% year-to-date. We anticipate that properties under management will continue growing throughout the year and expect the annual growth rate to be at least approximately 30%. The continued growth in properties under management is expected to contribute to a significant increase in top-line revenue in 2024. We look forward to continuing on our trajectory toward achieving our annualized revenue run rate target of $100 million by the end of 2024, with the expectation of attaining profitability in 2025.”
Price Action: LRHC shares closed lower by 2.72% at $1.43 on Tuesday.
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Perfect Corp (NYSE:PERF) announced financial results for the three months ended June 30, 2024, the second quarter.
Total revenue was $13.9 million, compared to $12.7 million year ago, an increase of 9.6%. The increase was primarily due to growth in the revenue of AI- and AR-cloud solutions and mobile app subscriptions.
Gross profit was $11.0 million compared with $10.2 million in the year-ago quarter, an increase of 7.8%.
Despite the increase in gross profit, the gross margin slightly decreased to 79.3% for the second quarter, from 80.6% last year, primarily due to the increase in third-party payment processing fees paid to digital distribution partners such as Google and Apple related to the growth in its mobile app subscription revenue.
Net income was $0.8 million for Q2 compared to a net loss of $0.2 million. Adjusted net income was $1.3 million compared to adjusted net income of $0.9 million in 2023, an increase of 43.8%.
Operating cash flow was $2.0 million in the second quarter of 2024, compared to $2.6 million a decrease of 24.6%.
As of June 30, 2024, Perfect Corp held $120.8 million in cash and cash equivalents, compared to $122.0 million as of March 31, 2024.
Perfect Corp had 151 key customers as of June 30, 2024, compared with 152 as of March 31, 2024. The slight decrease in the number of key customers primarily resulted from specific brand clients’ non-renewal of customer contracts due to financial pressure, among other factors.
As of June 30, 2024, Perfect Corp’s cumulative customer base included 686 brand clients, with over 774,000 digital stock-keeping units for makeup, haircare, skincare, eyewear, and jewelry products, compared to 666 brand clients and over 745,000 digital SKUs as of March 31, 2024.
Perfect Corp’s YouCam mobile beauty app active subscribers grew by 18.3% year-over-year, reaching a record high of over 919,000 active subscribers at the end of the second quarter of 2024.
Perfect Corp expects such legacy non-recurring revenue to become increasingly insignificant as it continues strengthening its market leadership in providing AI—and AR-based SaaS subscription solutions for brands and customers.
Based on the growth momentum in enterprise SaaS solution demands and YouCam mobile app subscriptions during the first half of 2024, Perfect Corp reiterates its expectation that the year-over-year growth rate of total revenue in 2024 would range from 12% to 16% compared to 2023.
Price Action: PERF shares closed higher by 1.85% at $2.20 at Tuesday.
At a time when illicit drugs are a leading cause of death among young adults, Transparency emerges as a ray of hope to mitigate the harms caused by drug prohibition and the not so successful abstinence-only approaches. The new harm reduction organization, evolving from the well-known Bunk Police, launched Tuesday with a bold mission of expanding access to life-saving drug testing kits beyond the confines of music festivals to a nationwide audience, addressing a critical gap in public health safety.
In an exclusive interview with Benzinga, Adam Auctor, founder and CEO of Transparency, shared insights into the strategic shift and broader vision of the organization. “Over the last 13 years, we've been growing and learning everything we can about the harm reduction space. We have been focusing on the problem primarily within the music festival scene—simply due to the sheer number of drug use happening at these events. However, it became clear that this problem exists in so many corners of our culture—it's not isolated to one particular group of people,” Auctor explained.
He said the time has come for a more inclusive approach: “We want to reach parents wanting to help their children stay safe, those seeking and purchasing medications online and those who may be operating in semi-legal spaces, not just the clearly illicit ones. Essentially, Transparency is hoping to do even more and to help as many people as possible.”
This new organization is positioned as a hybrid between nonprofit and for-profit, aiming to make drug testing kits as ubiquitous as home health tests. “We believe that everyone has the right to safe, tested substances,” Auctor told Benzinga, highlighting the initiative's commitment to public health and harm reduction.
Read Also: FDA Approves Over The Counter Sale Of Opioid Reversal Drug Narcan
The urgency for such tools is stark. Drug-related deaths continue to be a leading cause of mortality among U.S. adults aged 18-45, many of which are linked to dangerous adulterants like fentanyl. Transparency’s response includes an innovative line of testing kits designed to be portable, affordable and accessible, addressing the barriers of shelf life and ease of use which have limited previous models.
Also, Transparency's AI-powered Harm Reduction app revolutionizes how users interpret drug test results, leveraging the world’s largest substance reaction library. Developed over a decade with analysis of over 300 substances, the app serves as a virtual guide for safe substance use. Auctor praises its capability: “The individual can clearly see what they should expect their substance reaction to look like. If it matches the video, they know if their expected substance is present or not.”
The organization also plans to tackle stigma and accessibility issues surrounding drug testing through strategic expansions into traditional retail channels and a robust educational push. “Our upcoming line of test kits will also make this integration much more plausible,” Auctor added, referring to the improved shelf life and user-friendliness of the new products.
Complementing their launch, Transparency is taking significant strides in the media space to amplify their message. The release of their documentary, “Poison Pills,” exposes the dangers in unregulated pharmaceutical markets, particularly in Mexico. “We decided to make this documentary to expose that adulteration in Mexican pharmacies is, in fact, happening and the repercussions are often fatal,” said Auctor.
Read Also: Study Debunks Myths: No Crime Rise Linked To NYC’s Overdose Prevention Centers
As the drug crisis deepens across the globe, Transparency's efforts aim at marking a turning point in how societies approach the issue of drug adulteration. “Empowerment through education, awareness and accessible resources is a top priority…If this equipment could be government-subsidized or provided free of charge (like we're beginning to see with fentanyl test strips in certain places), that would be ideal,” Auctor said.
"Let's meet people where they are, by not condemning or stigmatizing drug use and instead providing ample education about how to mitigate risk surrounding drug use and the tools to back up the education, like drug checking kits and test strips," he added.
In March, the United Nations Commission on Narcotic Drugs (CND) marked a historic shift by approving a U.S.-proposed resolution recognizing harm reduction as a critical response to overdose crisis.
To support Transparency's mission in advancing public health and making drug safety accessible and stigma-free, visit www.infinitetransparency.com.
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Cannabis rescheduling seems to be right around the corner. Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.
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