In our latest Trade To Black podcast presented by Flowhub, hosts Shadd Dales and Anthony Varrell welcome Terry Mendez, CEO of Safe Harbor Financial (NASDAQ: SHFS), and Flowhub CEO Kyle Sherman, as breaking rescheduling news jolts the sector.
Fresh off three weeks of conferences, Mendez says banks are now weighing how to compete as larger institutions eye the space. Many still won’t lend beyond commercial real estate, he explains, because cannabis loans now pay only a point or so more than real estate rates.
Mendez argues DEA registration may not pencil out for operators with small medical programs, given the separate accounting and tax work it requires. Registration also lists every vendor, which is pushing ancillary providers toward cannabis-friendly banks. He adds that DEA site visits remain uneven, with inspectors asking operators’ compliance staff how audits should work.
Mid-show, news broke that ALJ Derek Julius has paused the rescheduling hearing. Opponents had moved to add a recent GAO report detailing gaps in the DEA’s scheduling procedures, and the DEA has until October 13 to respond. Varrell calls it a procedural speed bump, not a ruling on the merits, even as MSOS fell about 6% after hours.
In segment two, the NuggMD Check In Poll of the Week finds that half of consumers say their tolerance has increased, while just 10.5% say it has decreased. Sherman, whose own tolerance has dropped with age, questions why the industry hasn’t embraced self-regulation on potency.
A new CommonWealth Beacon and MassINC Polling Group survey shows 61% of likely Massachusetts voters oppose the ballot measure to roll back legalization, with only 27% in favor. It’s the third recent poll with similar results.
We also revisit federal data showing past-30-day teen marijuana use at an all-time low of 12.9%, down from 23.1% in 2011, even as adult-use legalization has expanded.
