Repayments And Bans: The Episode Wall Street Should Watch
In the latest Trade To Black podcast, presented by Flowhub, host Anthony Varrell welcomes two heavyweight guests, FundCanna CEO Adam Stettner and famed short seller and activist investor Marc Cohodes, for a deep dive into cannabis lending, early repayments, short selling, and the future of the hemp industry.
In the headlines: Senators Booker, Schumer and Wyden refiled the Cannabis Administration and Opportunity Act. On the psychedelic side, Eli Lilly agreed to acquire AtaiBeckley in a deal worth roughly $2.8 billion upfront and up to $3.8 billion with milestones — validation of the long-standing thesis that big pharma would eventually catch a bid on plant medicine, though the structure wasn’t especially friendly to retail. COMPASS Pathways and Definium Therapeutics remain the other horses in the race.
In segment one, Stettner returned with market-specific lending data from across the industry, breaking down what operators are borrowing for, which state markets are showing strength, and what the numbers signal heading into Q2 earnings season. He said the biggest surprise of the ALJ hearing was that there were no bombshells — almost boring, a formality where arms of the federal government presented genuinely good evidence for cannabis’ medical value while the opposition offered little substance. He then explained the mechanics of an early repayment cycle: FundCanna repayments are running at 97.8 cents on the dollar against a typical 94-to-97 range, with capital cycling faster over the last two months, signalling healthier operators and a desire to scale in a post-Schedule III environment. He argued the sector is being valued as if it’s dead, and that 280E relief plus Treasury guidance would materially change these businesses.
In segment two, Cohodes made his case ahead of the federal hemp ban taking effect November 12, arguing for one plant, one rule — that intoxicating hemp and cannabis are the same product, that synthetics should be banned, and that age-gating, track-and-trace and taxation should govern both. Varrell pushed back hard on whether a hemp lane survives descheduling at all, and they’ll explain where they part ways. Cohodes also detailed how short sellers can distort small-cap stocks through naked shorting, spoofing and manipulation, addressed his continued focus on Glass House Brands (NYSE: GLAS), and previewed the company’s August 28 bell-ringing at the NYSE as the second U.S. plant-touching operator to uplist to a senior exchange.
This and more when you tune in.
