In our newest Trade To Black Podcast, Shadd Dales and lead financial writer Benjamin A. Smith interviewed President and Chief Investment Officer of JW Asset Management, LLC, and TerrAscend Corp. (CNSX: TER) (OTCMKTS: TRSSF) Chairman of the Board, Jason Wild. The panel was also joined by Chief Investment Officer of Seymour Asset Management and CNBC host, Tim Seymour. On the agenda, commentary regarding the catalyzing news that president Biden will pardon all prior federal offenses of simple cannabis possession, as well as initiate a review on cannabis rescheduling.
While the news was profound, we wanted to know whether the announcement changes the dynamics in the public markets, which have been mired in bear market conditions for the past several quarters.
On one hand, the announcement doesn’t change much from the status quo. Mr. Seymour does not believe it will bring new institutional money to the sector right away—especially as custody issues linger leading to a lack of liquidity. As well, a re-scheduling review by the Attorney General/U.S. Department of Health & Human Services could take many months, although estimates on potential timelines are wide-ranging.
On the other hand, the administration clearly signaled a bold policy drive on cannabis. For the first time in forever, skepticism about reform has been replaced by hope and anticipation. The federal pardons seemingly increases the odds of SAFE Banking passing in the lame duck session of Congress by pre-implementing one of the key demands from Senator Schumer & Co. on social justice. The administration has finally taken tangible and realistic steps to tackle the issue.
So while nobody knows for certain whether MSOS has seen the bottom, the panel agrees that a key pivot has taken place. That won’t help stagnant growth, price compression or institutional involvement now, but it does give existing investors a big reason to not sell, to look forward. Policy trajectory just got a whole lot clearer, and now it’s only a matter a time before the strategics & institutions take notice.
To view our previous Trade To Black Podcast, click here.