Cannabis Revenues vs. Arrests, Seriously?💰👮‍♂️

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Good morning everyone! Nicolás Rodríguez here, reporting during the countdown for Friday. Let’s go: In California, Google, Yelp, and Cheech & Chong are caught up in cannabis regulation battles, with LA targeting illegal shops while Governor Newsom’s hemp ban faces legal pushback. Meanwhile, Maryland's cannabis tax revenue soars as the FBI reports over 200,000 cannabis-related arrests in 2023, most for possession. On a different front, ChatGPT creator Sam Altman is investing in psychedelic therapies.

Google, Yelp, and Cheech & Chong Clash Over Cannabis Rules In California 

As Los Angeles pushes search engines like Google and Yelp to remove listings for illegal cannabis shops, California's Governor Newsom faces legal battles over his sweeping ban on hemp-derived THC products. While LA’s initiative aims to clean up cannabis search results and protect consumers from unlicensed businesses, Newsom’s ban is accused of stifling legitimate hemp companies. 

The plaintiffs, including Cheech and Chong’s cannabis company, argue that the ban, which prohibits even trace amounts of THC, unfairly favors the illicit market, ironically making both sides of the cannabis industry feel under attack.

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Booming Revenues vs. Arrests

Maryland’s cannabis tax revenue hit a staggering $22.3 million in Q2 2024—a 52% jump, with much of it earmarked for equity programs repairing the damage done by prohibition. Sounds like progress, right? 

However, here’s the kicker: in 2023, over 200,000 people were still arrested for cannabis-related offenses, 84% for possession alone. So, while states are cashing in and investing in communities, others are still locking people up for the same thing.

ChatGPT Creator Backs MDMA Therapy: Sam Altman’s Psychedelic Bet

Sam Altman, co-founder of OpenAI and the mind behind ChatGPT, is now turning his focus to psychedelic therapy. After personally overcoming anxiety through psychedelic experiences, he’s investing in Journey Colab, a startup exploring MDMA and psilocybin to treat mental health conditions like PTSD and depression. Journey Colab aims to guide these powerful substances through clinical trials.

Small-Cap, Big Potential? Find Out At These Conferences  

Looking for stocks with serious upside? Small-cap cannabis plays like Vext Science (OTC: VEXT), C21 Investments (OTC: CXXIF), and iAnthus Capital (OTC: ITHUF) are standing out in a market where mega-caps often steal the spotlight. What makes these small caps interesting? 

As inflation drops to 2.5%, lower borrowing costs are on the horizon, giving these companies the breathing room they need to expand and innovate. With traditional financing limited for cannabis firms, cheaper debt could unlock serious growth potential.

Add to that the tendency for investors to turn toward riskier assets—like small-cap cannabis stocks—when interest rates fall, and you've got a formula for opportunity. Want to catch the next wave? The Benzinga SmallCap Conference is your chance to connect with the key players driving this trend.

Multi-Billion-Dollar Insights 

Ross Gerber, CEO of Gerber Kawasaki Wealth, managing over $2.6 billion in assets, will delve into cannabis finance at Benzinga’s Cannabis Capital Conference in Chicago, October 8-9, 2024. Gerber will share insights on rescheduling, tax issues, and market strategies, offering valuable perspectives for cannabis investors.

Stories In The Spotlight:

• Cannabis Licensing And Finding Dispensaries In New York Just Got Easier—Here's How

• LIFD's 5x Potential: Is This Psychoactive Hemp Stock The Next Big Speculative Buy?

• Tilray Brands Launches Hemp-Derived Delta-9 THC Drinks In Key U.S. Markets

• Can Novo Nordisk's Weight Loss Drug Ozempic Help Stem The Devastating Addiction Crisis? New Research Says Yes

• Cannabis Reform On The Horizon, But 'Lasting Change' Requires More Than Promises

• 'Investors Are Looking Beyond The Hype': What's Driving Cannabis Investments Today?

Our Writer Today

Nicolás holds a B.A. in International Relations, an M.A. in International Affairs, and an M.Phil in Public Policy. He is a doctoral student in Public and Urban Policy at The New School in New York City. After working for the United Nations in 2014, Nico pivoted his research to studying the relationship between the cannabis industry and economic development.

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