Dan Ahrens on MSOS Inflows, Uplisting Rumors and Psychedelics
Cannabis and psychedelics continue to gain momentum as investors position for what could be a transformative period for both industries. In this episode of Trade To Black, Shadd Dales and Anthony Varrell welcome AdvisorShares MSOS ETF Managing Director Dan Ahrens to discuss cannabis stock inflows, recent market activity, uplisting speculation, the upcoming DEA Administrative Law Judge hearing, and the growing interest surrounding psychedelic medicine.
We kick off with a developing story on the hemp front: a congressional committee had blocked amendments that would have preserved the legality of intoxicating hemp-derived THC products, further cementing the likelihood that the federal hemp ban will take effect on November 12th as scheduled.
Dan Ahrens, Managing Director of the AdvisorShares MSOS ETF, offered a candid assessment of where the cannabis investment space currently stands. Ahrens acknowledged that trading volumes remain low and that the universe of cannabis investors has actually shrunk since 2021. He noted, however, that the recent wave of reverse stock splits and corporate redomiciling among major multi-state operators are deliberate steps being taken with full awareness of exchange listing requirements — and that the NYSE and Nasdaq are more receptive to cannabis listings than at any point in history.
Ahrens also addressed investor anxiety around reverse splits, drawing a clear distinction between the splits currently underway in U.S. cannabis and the dilutive capital raises that accompanied similar moves by Canadian licensed producers. He emphasized that market capitalization — not share price — is the only rational metric for evaluating these companies, and that with 280E tax relief on the horizon and debt already refinanced at favorable terms, there is little reason for any major operator to tap equity markets at current valuations.
The second segment featured the return of Dr. Paul Shields, Chief Medical Officer of Vantage, for the podcast’s ongoing weekly series examining the CBD pilot program. Dr. Shields outlined the core reasons physicians remain reluctant to engage with CBD: medical schools have historically not taught the endocannabinoid system, the substance was long classified as a drug of abuse with no recognized medical purpose, and the continuing education infrastructure has yet to catch up. He estimated that roughly 20 percent of a typical adult patient panel has used CBD in the past year, yet the prescribers treating those patients largely lack the foundational knowledge to discuss it.
This and more when you tune in
