TDR’s Top 7 Cannabis Developments For The Week Of October 23

Welcome to TDR’s review of the Top 7 Cannabis Developments for the week of October 23. Aside from presenting a synopsis of news events, interviews and closing market prices for publicly-listed companies.

7. 65% Of Americans Say They’d Use Medical Cannabis For Anxiety, Pain And Sleep

Provider of clinically guided cannabis health and wellness solutions EO Care, Inc., released this week’s results of its new survey showing Americans’ views on marijuana and consumption habits. All of the 1,027 survey participants were employed at least part-time and are from states where cannabis is legal either for medical or adult use.

Survey Highlights

  • 18% of respondents have used marijuana for health reasons in the past year, 19% have used it recreationally and 14% have used it for both purposes
  • The top three reasons for their marijuana consumption are anxiety, pain and as a sleep aid. 88% of medical marijuana users say it reduced their use of prescription drugs, alcohol or both
  • 51% said they would be likely/very likely to use if it were offered by their health plan

6. Pennsylvania House Committee Schedules Marijuana Legalization Hearing For Next Week, With Chair Considering State-Run Stores

A Pennsylvania House committee will convene for an informational meeting next week to hear from experts about adult-use marijuana legalization as legislators chart a path for the reform, with the panel’s chairman considering the possibility of incorporating a state-run cannabis sales model.

While the House Health Subcommittee on Health Care will not take up any specific legislation at its November 1 hearing, members will have the chance to listen to testimony from professors, advocates and addiction specialists about the health considerations of moving forward with legalization in the Keystone State.

5. AWH Announces Strong Preliminary Third Quarter 2023 Results and New Leadership Appointments

Ascend Wellness Holdings, Inc. announced strong preliminary third quarter 2023 financial results as well as updates to its leadership team.  After a preliminary, unaudited review the company is expecting:

  • Record revenue for the 6th consecutive quarter, with net revenue up nearly 15% sequentially to approximately $140 million
  • Significant sequential Adjusted EBITDA growth ranging from $27 to $29 million; and
  • Third consecutive quarter of positive Cash from Operations and first quarter of positive Free Cash Flow2


Chart Of The Week—The Versatility Of Cannabis Is Profound

Interview Of The Week—TDR & Don Murphy, Live From Capitol Hill

Cannabis lobbyist Don Murphy opines on the latest happenings on Capitol Hill, where Mike Johnson was elected Speaker of the House

Widely Held MSOs & LP Weekly Performance

CompanySymbolPrevious Week CloseEnd Of Week Close% Change On Week
AdvisorShares Pure Cannabis ETFMSOS6.685.24-21.55
Aurora CannabisACB0.44620.4357 -2.35
Ayr WellnessAYRWF1.771.18-33.33
Canopy GrowthCGC0.51240.5067-1.11
Cresco LabsCRLBF1.541.16-24.67
Curaleaf HoldingsCURLF3.682.78-24.45
Green Thumb IndustriesGTBIF9.367.96-14.95
High Tide Inc.HITI1.511.34-11.25
Marimed Inc.MRMD0.3980.32-19.59
TerrAscend Corp.TSNDF1.791.53-14.52
Tilray BrandsTLRY1.841.71-7.06
Trulieve CannabisTCNNF5.003.85-23.00
Verano HoldingsVRNOF4.423.25-26.47


4. Top Federal Health Agency Releases Highly Redacted Marijuana Scheduling Recommendation Letter To DEA

The U.S. Department of Health and Human Services (HHS) has released a highly redacted version of a brief letter to the head of the Drug Enforcement Administration (DEA) regarding the agency’s marijuana rescheduling recommendation.

The letter, obtained via Freedom of Information Act (FOIA) request by Law360 reporter Sam Reisman, confirmed certain previously reported details such as the date of the correspondence, August 29, and the author, HHS Assistant Secretary for Health Rachel Levine. But it was redacted to exclude the substance of the message such as the scheduling recommendation itself, as well as the scientific review portion that was attached to the letter.

In the news…

4Front Ventures announced that in connection with its US$10 million senior secured credit facility agreement previously reported on October 16th, the company intends to enter into a restricted stock unit agreement with ALT Debt II, LP, an affiliate of Altmore Capital, to issue a total of 15,900,000 Restricted Share Units to the Lender.

Aurora Cannabis announced the company and WILLOW BIOSCIENCES, INC. have successfully completed a confidential settlement ‎resolving the ongoing patent litigation between the two parties in Canada.

Aurora Cannabis has scheduled a conference call to discuss the results for its second quarter fiscal year 2024 on Thursday, November 9, 2023 at 5:00 p.m. Eastern Time.

Ayr Wellness Las Vegas marijuana shop employees voted in favor of unionizing under the United Food and Commercial Workers Union (UFCW).

Betty’s Eddies has launched a new limited-edition batch of apple pie chews for autumn: Sweater Weather Betty’s. Betty’s Eddies is one of the top-selling and award-winning brands developed and distributed by leading multi-state cannabis operator, MariMed Inc.

Botanical Sciences will be the first to dispense cannabis in Georgia through pharmacies. This marks the first ever sales of medical cannabis in pharmacies, as Georgia has recently become the first state in the nation to allow the distribution of medical cannabis products to registered patients at independent pharmacies.

Canadian consumers, approximately 2/3s of them, buy cannabis only from legal sources, according to a new survey from Toronto-based polling company Pollara Strategic Insights.

Canopy Growth will release its financial results for the second quarter fiscal year 2024 ended September 30, 2023 after markets close on November 9, 2023.

Charlotte’s Web Holdings will report its third quarter financial results prior to market open on November 9, 2023. A conference call to discuss the results is scheduled for the same day at 11:00 a.m. Eastern Time.  

Cronos Group will hold its 2023 third quarter earnings conference call on Wednesday, November 8, 2023 at 8:30 a.m. ET.

Delta 9 Cannabis has established an at-the-market equity program that allows the Company to issue up to $5,000,000 of common shares in the capital of the company from treasury to the public from time to time, at the company’s discretion.

Full retrace of HHS rescheduling rally has occurred in the Tier-1A MSOs…

GTI: RISE Dispensaries announced that RISE Dispensary Sun City Center, the Company’s tenth retail location in Florida and 86th nationwide, will open on October 27th.

Health Canada expects cannabis exports to continue to increase significantly, with more than a thousand applications already submitted last report.

Heritage Cannabis Holdings announced that recreational product sales in the state of New York has officially commenced.

High Tide announced that its Canna Cabana retail cannabis store located at 101 Sage Valley Common NW, Calgary, Alberta will begin selling recreational cannabis products.

Humble & Fume reported its fiscal fourth quarter and full-year financial results for 2023.

Lotus Ventures announced that the company received a Notice of Claim from 5008679 Ontario Limited, owned by a former Director of the Company, for approximately $1.15M.

MediPharm Labs has now received $7.27 Million in gross cash proceeds from the settlement agreement announced on October 2, 2023 to resolve  a claim in connection with a commercial agreement dispute.

Michigan: Key findings in firm Rehmann report 2023 Michigan Cannabis CFO Outlook Report in partnership with A&K Research, Inc.

NewLake Capital Partners announced that Anthony Coniglio, CEO, will participate in the Zuanic and Associates “Lending in the Cannabis Sector” virtual panel.

Ohio: Early voting has started on Issue 2, a ballot measure that will legalize recreational weed in The Buckeye State if passed.

Ohio lawmakers survey suggests that a majority—54 percent—believe voters will approve a ballot initiative next month to legalize marijuana in the state.

Shiny Health & Wellness signs a letter of intent with Stash & Co. to acquire all of Stash & Co.’s adult use cannabis retail stores.

SNDL closing CA$100 million flagship cannabis facility in Alberta.

The Tinley Beverage Company has settled legal action threatened by the Company’s former CEO, Jeffrey Maser.

Tilray Brands has started to convert some of its packaging and product components to hemp in an attempt to minimize the use of single-use plastics that end up in landfills.

Trulieve Cannabis announced the opening of a new medical dispensary located at 4256 Lafayette Street in Marianna, Florida.

Trulieve Cannabis announced the first state inspection for the sale of low-THC medical cannabis products at one of the company’s partnering independent pharmacies in Georgia, the first state in the nation to allow pharmacy sales of medical cannabis.

Verano Holdings announced the opening of MÜV Satellite Beach on Friday, October 27, the company’s 72nd Florida dispensary and 135th location nationwide.

3. Bipartisan Congressional Lawmakers File Marijuana Legalization Bill

Bipartisan House lawmakers have refiled another bill to federally legalize marijuana, while taking steps to preserve existing state cannabis markets. Sponsored by Rep. Nancy Mace (R-SC), the States Reform Act was first introduced in 2021, serving as an alternative to a Democratic-led legalization proposal that’s cleared the House twice in recent years. At that time, Mace’s bill had only GOP cosponsors.

The text of the new version of the legislation, which has has a handful of both Democrats and Republicans signed on, isn’t available yet, so it’s unclear if there have been meaningful changes. Even more uncertain are its prospects of advancing under the GOP-controlled House, where the speaker position remains vacant after three weeks following the ousting of Rep. Kevin McCarthy (R-CA) from the leadership role.

2. Mike Johnson Wins House Speaker Election—Ending Historic Three-Week GOP Impasse

The House elected Rep. Mike Johnson (R-La.) as its 56th speaker Wednesday, concluding a leadership fiasco that exposed deep divisions within the Republican Party and deadlocked legislative business at a consequential time for Congress.

Johnson won 220 votes, 3 more than the 217 needed to win. No Republicans voted for another candidate, while all 209 Democrats present voted for House Minority Leader Rep. Hakeem Jeffries (D-NY). The speaker’s office has been vacant for an unprecedented three weeks, since Rep. Kevin McCarthy (R-Calif.) became the first speaker in history to be removed by the House on October 3.

1. Cannabis MSOs & Partners File Federal Lawsuit Seeking Equal Treatment For Cannabis Businesses

A coalition comprising U.S. cannabis operators (MSOs) and investors engaged in state-legal medical and adult-use cannabis markets have taken legal action by filing a lawsuit against U.S. Attorney General Merrick Garland. The coalition, represented by the esteemed law firm Boies Schiller Flexner, is seeking an injunction against the federal government’s enforcement of the Controlled Substances Act (CSA) in a way that obstructs the intrastate cultivation, production, possession, and distribution of cannabis, as mandated by state law

The core objective of this legal action is to affirm the rights of Massachusetts and other states in regulating cannabis within their own boundaries while also delineating the federal government’s limitations in regulating commerce. The authority of the federal government to regulate commerce is rooted in the Interstate Commerce Clause of the United States Constitution.

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