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Good morning folks! Nicolás Rodríguez and Patricio Liddle here, ready to kick off your week with the latest in cannabis and investing. From Cannabist taking heat from its lender to Verano stepping in with Tyson’s knockout force, this week is packed with major moves, legal debates, and a tribute to Dimebag Darrell’s cannabis legacy. Grab your cup of joe, and let’s dive in!

Lender Calls Out Cannabist, Verano Throws Tyson’s Knockout Punch

FiSai isn’t holding back, calling out Cannabist (OTC: CBSTF) for its “pray and hope” strategy while the company buckles under $185 million in debt and liquidity issues. With refinancing options on the table but no response, Cannabist’s leadership is banking on external factors, like favorable changes in cannabis regulation following the 2024 elections, to save the day.

Verano (OTC: VRNOF) is capitalizing on Cannabist’s struggles, strategically acquiring key assets for $105 million, including a Virginia license and operations in Arizona—markets poised for growth. By stepping in, Verano deepens its footprint while leveraging partnerships like Mike Tyson’s TYSON 2.0, securing an edge in competitive markets like Florida and Illinois. Investors may want to watch who’s playing the long game and who’s left in the corner hoping for a knockout.

IM Cannabis (NASDAQ: IMCC), however, is competing in a different league. The company’s German market has surged 50% this quarter, and to keep momentum, it’s launching a $1.6 million non-brokered private placement to repay a loan and consolidate shares. As IMC sharpens its strategy, investors may see it emerge as a heavyweight contender in Europe’s cannabis market.

PRESENTED BY CANNABIS CAPITAL CONFERENCE

Cannabis, Guns & Delta-8

The U.S. Department of Justice continues to defend its ban on gun ownership for medical cannabis users, citing safety risks due to impaired judgment in a case brought by a Pennsylvania DA and medical marijuana patient. However, a recent Texas court ruling contradicts this stance, allowing cannabis users to retain gun ownership rights. This split in legal decisions between federal and state authorities raises questions about the future of gun ownership among the growing number of legal cannabis users across the country.

Texas also faces another critical legal challenge over its proposed Delta-8 THC ban. The state’s Supreme Court is set to decide on the legality of the popular hemp-derived cannabinoid. Industry stakeholders argue that the ban's sweeping language could affect more than just Delta-8 products, potentially limiting the sale of many other cannabinoids. With Texas contributing billions to the hemp market, the impending court ruling could reshape the state’s industry and spark further regulatory debates locally and nationally.

Pre-rolls From Hell

Dimebag Darrell’s Cannabis From Hell launches at Aftershock Festival with limited-edition Pinteras pre-rolls. Created in collaboration with his widow, Rita Haney, the strain "Revolution (Is My Strain)" honors the late Pantera guitarist. Available at select California dispensaries during the festival week.

Al Harrington Warns Big Pharma Eyeing Cannabis Legalization

Al Harrington's exclusive interview with Benzinga dives deep into the political and corporate interests that shaped cannabis prohibition. He emphasizes the need to keep cannabis community-focused and authentic while cautioning about Big Pharma’s looming presence. With Harrington’s personal experiences and insights, this piece offers a compelling look at the fight to preserve cannabis for future generations.

MSOs Brace For 2025

The chart above from Viridian Capital breaks down the 2025 cash sources and uses for 14 major MSOs. The orange line shows EBITDAR, the key funding source for fixed charges, while the black line includes cash reserves. Companies like Green Thumb and Trulieve are well-positioned, but others may struggle without those reserves. If 280E is eliminated, nearly all companies would cover their cash needs. While 2025 looks manageable, refinancing in 2026 could pose bigger challenges.

Stay tuned—there’s a lot at stake for the cannabis industry.

Stories In The Spotlight:

• Cannabis-Based Dronabinol Could Transform Alzheimer's Care, New Study Finds 

• Cannabis In Europe: From Marijuana Busts To New Industry Partnerships, Here's What's New In Poland, Greece And UK

• Cheech And Chong Cannabis Company, Hemp Roundtable Petition Court To Stop Gov Newsom's Controversial Hemp-THC Ban

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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