Trade To Black: Cannabis Sector Meltdown?
On today’s Trade To Black Podcast for Friday, December 13, 2024, hosts Anthony Varrell and GUAP break down some of the most pressing cannabis headlines from around the industry. Among the headlines: South Carolina and Nebraska’s efforts to establish a medical marijuana program, Seth Rogen has entered the Delta-9 hemp space in beverages, and venture capitalist Marc Andreesen has been supporting cannabis industry banking on socials. And is the cannabis sector having a meltdown? We’ll share our thoughts.
Speaking of social, there was feuding between top CEOs and fund managers in the cannabis space on X. With so much potential for misinformation and the lack of a constructive forum for resolving these disputes, Anthony extended an invitation to Ben and Noah to conduct a moderated discussion on the podcast.
We’ll discuss the ongoing slump in cannabis stocks. Tax-loss selling and lack of market activity during year-end is contributing to some of the meltdown in the cannabis industry, but there’s optimism for recovery tied to upcoming ALJ hearings and administrative changes.
In the headlines, there’s good news out of South Carolina, where a new bill aims to establish a medical marijuana program—long overdue and much needed. But there’s a downside. The proposed legislation is restrictive, requiring a doctor’s prescription and pharmacist distribution. This limits access compared to more liberal medical marijuana programs that include dispensaries. Also, the list of qualifying conditions is narrow, focusing on severe illnesses like ALS or cancer.
In Nebraska, Governor Pillen has signed measures into law permitting the possession and sale of medical marijuana after voters approved them at 71% and 67%. Smart Approaches to Marijuana attempted to block these measures but had their motion denied by a judge who emphasized the importance of respecting the will of the people in a democratic process. It’s a big win for the Cornhusker State, as it becomes the 29th state to legalize.
Meanwhile, Seth Rogen is returning to the spotlight by entering the Delta-9 hemp space through the beverage category. His HousePlant seltzers are set to hit shelves later this year. Additionally, famed venture capitalist Marc Andreesen was originally caught out by backlash for Tweets that expressed some negative sentiment about cannabis and users. He later backpedaled, and expressed public support for cannabis industry banking on X. We’ll explore the implications.
