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Good morning folks! Nicolás Rodríguez and Patricio Liddle here. We're in the thick of it—Florida’s $100 million bet on adult-use cannabis is showing mixed results, while TerrAscend locks in a $26 million loan to slash debt in Michigan. Plus, top Democrats are urging the DEA to accelerate cannabis rescheduling. Stay sharp, stay tuned.

Florida's $100M Cannabis Gamble

Florida's cannabis market is at a crossroads despite a $100 million push for adult-use legalization. While companies like Trulieve (OTC: TCNNF) and Curaleaf (OTC: CURLF) have heavily invested—contributing millions to the Smart & Safe Florida campaign—recent figures show mixed signals.

According to Beacon Securities, per-dispensary sales dropped in Q3 2024, with flower sales falling 1% and oil-based products slipping 5%. Despite challenges, Trulieve maintained its market lead, but with dispensary saturation, it's fair to question whether the current market fundamentals can sustain the anticipated boom.

With total cannabis sales in Florida projected to grow at a 12% compound annual growth rate through 2028, reaching $4.5 billion, the potential remains massive. Will these heavy investments pay off as expected? Stay tuned. 

PRESENTED BY CANNABIS CAPITAL CONFERENCE

DEA Dragging Feet, Harris Calls For Change, Industry Holds Breath

Top Democrats in the House are urging the DEA to expedite cannabis rescheduling following a Biden administration review. Representatives Jerrold Nadler (D-NY) and Frank Pallone (D-NJ) argue that cannabis has less potential for abuse and accepted medical use, pushing for reclassification to Schedule III and even considering full descheduling—a possibility we discussed in yesterday's newsletter after VP Kamala Harris stated that “we need to legalize.”

As momentum builds for federal reform, its urgency becomes clear in light of California's new hemp restrictions, which underscore the need for a unified regulatory framework across the nation. These rules, limiting hemp product sales, have sparked debates, showing how fragmented state regulations continue to challenge both the cannabis and hemp industries.

No Strings Attached

TerrAscend Corp. (OTC: TSNDF) locked in the final $26 million loan of its $140 million, targeting high-interest debt in Michigan. With a 12.75% interest rate and no prepayment penalties, the deal strengthens its balance sheet and leaves no major debt maturing until 2027—setting the stage for future growth. Other cannabis companies face key debt maturities before year-end, including Jushi (OTC: JUSHF) with $58 million due in December 2024 (21% of its total debt), and Curaleaf with $475 million maturing in December 2024 (49% of its total debt).

Full Throttle: 4,000 Vapes Per Hour 

Ispire Technology’s (NASDAQ: ISPR) I-80 vapor device filling machine is breaking records, hitting full throttle with the ability to fill and seal 4,000 vapor devices per hour—double the speed of current automated systems and 10x more efficient than manual methods. Ispire will unveil the I-80, designed to save cannabis operators $1,000 per every 10,000 units produced, at the upcoming Benzinga Cannabis Capital Conference in Chicago on October 8-9. 

Stories In The Spotlight:

• Pesticide-Free Food Tastes Better—Wait Until You Try Clean Cannabis This Autumn

• Paul Bilzerian Indicted For Evading $180M SEC Judgment Through Cannabis Brand Ignite

• UK Could Net Up To $12.6B Annually From Cannabis Legalization

• SEC-Approved Cannabis Lender Acquired By Investment Giant, Changes Ticker To $LIEN

• 'Companies With Distinctive Brands Are Gaining Attention': What's Driving Cannabis Investment Today?

• A Gala For Cannabis Justice: Inside The Last Prisoner Project's NYC Event, Featuring Damian And Stephen Marley

• Marijuana Pepsi Has Always Been Proud Of Her Name, More So Now With This Honorific: 'Doctor'

Our Writers 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.

Patricio is a development economist with extensive experience in IT, finance, and banking. He writes about the economic and social opportunities obscured by over fifty years of drug prohibition. Beyond his professional expertise, Patricio is a committed advocate for social change, passionately working to promote harm reduction and reform drug policies.

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