Unlikely Allies: Cannabis Makes For Strange Bedfellows

By Todd Harrison via Cannabis Confidential (July 19)

As the Republican National Committee (RNC) convention came to a close, a number of Republican congressional lawmakers shared predictions about the prospects of cannabis policy if President Donald Trump wins another term in the White House.

Rep. Brian Mast (R-FL), co-chair of the Congressional Cannabis Caucus, when asked if Trump or GOP-controlled Congress would block rescheduling, said, "I don't think so, no—if you support the states' rights philosophy of the U.S. Supreme Court case that overturned abortion rights under Roe v. Wade, you should apply that same principle to state cannabis laws."

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State Farms

The Golden State racked up more than $2 billion in legal cannabis sales in the first half of 2024—and despite strong competition from the illicit market and high state + local taxes, California still averages about $347 million in sales per month.

The only state that even comes close is Michigan, which recorded $1.6 billion in sales in the same time period. Michigan only began selling legal adult-use cannabis in 2019, but it quickly became a leader in the industry, with average monthly sales of $270 million.

Key Stoners

The governor of Pennsylvania says the administration and lawmakers will "come back and continue to fight" for marijuana legalization and other policy priorities that were omitted from budget legislation he signed into law last week.

However, key lawmakers have suggested that the state's top official hasn't been very engaged in efforts to enact the reform to date and there is splintering among Dems over the specific details of a legal cannabis market.

"The things that I laid out in my budget I still believe in and we're going to continue to fight for in the future." PA Governor Josh Shapiro (D)

Blue Grass

Gov. Andy Beshear of Kentucky joined an effort to urge the U.S. Drug Enforcement Administration to ease restrictions on marijuana. In a letter to DEA Administrator Anne Milgram, the governor wrote that a move to Schedule III would help patients have an alternative treatment for pain and help reduce crime and illicit drug use.

"As governor, my job is to move our state forward and rescheduling marijuana to Schedule III is a significant, common-sense step forward for all Kentuckians, especially those with significant medical conditions." Gov. Andy Beshear (D-KY)

Stocks & Stuff

U.S. cannabis bided time this week as U.S. politics saw a seismic shock, global markets rotated, and tensions manifested. U.S. cannabis ETF MSOS weathered the storm on a relative basis, but remains a show-me story with alotta wood left to chop.

Below, we'll chew through the news and views that drove the sector, take a fresh look at both sides of the aisle, check on the credit markets and share the human condition that belies the policy decisions and unacceptable delays inherent in the war on drugs.

All that and more, just scroll down.

SPY -0.93%↓ QQQ -1.23%↓ IWM -1.07%↓ MSOS -3.36%↓

Top Stories

• GOP Lawmakers Discuss Marijuana Rescheduling Impact Of Another Trump Presidency In Interviews At RNC
• California leads the industry in cannabis sales at six-month mark
• Michigan sold $1.6B in cannabis in the first half of 2024
• Pennsylvania Gov. Pledges To Keep Up Canna Fight Despite Budget Setback
• Gov. Beshear calls for easing marijuana restrictions in the U.S.
• Delaware Gov Signs Marijuana Bills, Including One To Let Medical Dispensaries Begin Recreational Sales Early
• Ohio Officials Approve State's First Recreational Marijuana Licenses For Growers And Processors Ahead Of Sales Launch
• Bahamas introduces legislation to regulate cannabis industry
• Three Out Of Four Patients Say Medical Marijuana Reduces Their Use Of Opioids And Painkillers, Ohio Study Shows
• Fired Jersey City Cops Say ALJ’s Ruling Backs Their Off-Duty Pot Use

Industry Headlines

Sunburn Cannabis rises to the top of Florida's medical sales leaderboard

Markets

Gonna keep this section tight as most of the day-to-day stock stuff is now on X-subs but the obvious storyline is the evolving presidential election that is less than four months away. For the incumbents, it's feels increasingly likely that Joe Biden will step aside by next week, with Kamala Harris the current fave for the top of that ticket.

That shouldn't derail any of the cannabis initiatives in motion—if anything, one could argue the Dems need a win now more than ever and she's been extremely vocal, if not already taking victory laps touting their progress on this issue. If Kamala picks Andy Beshear (D-KY), as rumored in some circles, the shift could be perceived as a positive.

While canna wasn't part of the GOP platform in Milwaukee, there were enough signals and signs to suggest this isn't your father's Republican party. Brian Mast echoed what we've said (states' rights + S3 are safe) and there may be more in store—like allowing 500,000 state-legal U.S. canna workers access to U.S. banks, letting U.S. companies list on U.S. exchanges, and pushing long-overdue canna clemencies through the system.

NBC News reported, "The Republican Platform no longer calls for a Federal abortion ban and no longer defines marriage between one man and one woman. Is this a sign Donald Trump is moving to the center.’

That makes all kinds of sense to capture moderates, undecided and minority voters and as I recently shared: there is one substance in the history of mankind that has been used for centuries to help reunite civilizations and that, my friends, is cannabis.

Unlikely Allies: The Weldon Angelos Story

Last year, while at a cannabis event, I walked up to my friend Brett Novey, CEO of U.S. multistate operator PharmaCann, and briefly explained what we were trying to do in building the Mission [Green] Alliance: a program that would allow consumers who buy legal cannabis to "round up" on behalf of The Weldon Project and Mission [Green].

Brett said, "Absolutely" before I could finish my pitch and if I can be honest, he and his crew at PharmaCann have absolutely crushed this program. It says a lot about a team that works that hard on a non-revenue generating initiative, particularly when nobody is paying attention—and doing it during a cannabis depression. Big-time respect.

So when it came time to screen Weldon's documentary in NYC, I suppose it shouldn't have been a shocker PharmaCann again stepped up, hosted and donated an event to remember last night at The House of Cannabis in NYC. With so much drama swirling around cannabis, it was a helluva thing to gather and remember why we fight so hard.

Weldon Angelos and Wyclef Jean

UFC fighter Matt Frevola and Terrascend Chairman Jason Wild

PharmaCanna walking the walk.

By the time Wyclef and Jake Wild—an extremely gifted up-and-comer—shared their lyrical love with the room, PharmaCann's flavorful aromas were wafting through the venue and I saw ear-to-ear smiles as the funds flowed to effect positive change.

Keep your eyes peeled for Unlikely Allies, as the documentary will soon be released far and wide, and word has it a full length feature film is already in the works.

And—this isn't a spoiler alert as much as a head's up: there was one president who is prominently featured in the film for his efforts to support criminal justice reform and for doing the right thing by Weldon. His name, so you know, is Donald John Trump.

Thank you Weldon, Brett, Pat, David and the terrific PharmaCann squad, Verano, Jason Wild, Jeff Schultz, Ann Lefever Gillin, Noah Hamman and the rest of the vibrant canna community that has made it their mission to not only do well, but to do good.

Echelon on Debt

The events of last weekend had us fielding questions about what that meant for the cannabis capital markets. The questions surrounded the perception of a Republican slam dunk in November. Well, there has been no effect in Debt markets (in-fact still better buyers for choice) and MSOS is a smidge higher; debt tones remains positive.

Over the last 6-9 months the canna debt markets have become a more mature sector vs one hinging on hope and therefore creating more order than 1H23. While equities were volatile, debt mkts have straight-lined up. Trump won't be able to put this back in the bottle; too much at stake now. Could it slow progress ? Sure, but the train left the station and canna debt still is very cheap vs the rest of HY market.

Stems & Seeds

Consumers Report Improvements in Anxiety, Depression Following Cannabis Use

Snoop Dogg Launches His First Marijuana Dispensary, Along With New Line Of Cannabis Products Honoring 2Pac

Housekeeping

As Stripe debates whether my Substack actually violates their services agreement as a "cannabis-related business" (scoffs), I’ve decided to take some time off from the daily recaps this summer and write when there’s something to say.

Subscribers won't be charged and we'll revisit this at a later date, if it’s my decision to make, and I'll continue to focus on the intraday market stuff in real-time on X-subs.

Have a safe night and please enjoy responsibly.

If you'd like to help Mission [Green] change federal cannabis policies, please click here.

CB1 has positions in / advises some of the companies mentioned and nothing contained herein should be considered advice

This article is from an external unpaid contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

Images via Wikimedia Commons (Trump / Snoop), edited by Benzinga