You're receiving this email because you're subscribed to Cannabis Daily from Benzinga. To manage your subscription, click the link at the bottom of this email.

Good morning folks! Nicolás Rodríguez and Patricio Liddle are here, keeping it simple to grasp what happened during the weekend and fuel for tomorrow's big day!

Harris' Progressive Promises, Vance's Conservative Nescience

Kamala Harris’s latest Instagram post offers a bold, all-caps promise: “legalize recreational marijuana,” calling for breaking down “unjust legal barriers” and creating opportunities for Americans in the cannabis industry. It’s a powerful stance, especially for voters wondering if the next administration will finally move from words to action on federal legalization. Yet, as Election Day looms, we can’t help but feel like déjà vu to some similar past commitments that faced delays and uphill battles in Congress. Perhaps Harris’s “this time for real” stance will bring tangible change.

On another note, on Joe Rogan’s podcast, JD Vance, Trump’s VP pick had a moment of candid surprise. When presented with a historical overview of how prohibition has hindered psychedelics research, he responded, "This is the first time I've heard about this." It's always refreshing when policymakers discover decades-old issues—better late than never…

Curious about how the 2024 election will shape cannabis reform? Don't miss our latest episode of Cannabis Insider premiering on YouTube today! We sit down with Saphira Galoob, executive director of the National Cannabis Roundtable, and former U.S. Senator Cory Gardner to explore how both a Harris and Trump administration might tackle federal legalization, rescheduling, banking reform, and balancing federal oversight with states' rights. Hope you tune in!

Election Week Meets Earnings Blitz– Ready For The Aftershock?

Brace yourself—earnings season collides with election week, setting the stage for potential market upheaval in the cannabis sector. Tilray Brands Inc. (NASDAQ: TLRY), High Tide Inc. (NASDAQ: HITI), and Glass House Brands Inc. (OTC: GLASF) are navigating financial pressures with distinct strategies.

High Tide reported a 6% revenue increase to approximately $94.4 million, driven by expansion across Canada, Germany, and the U.S., achieving a solid 12% market share in operational provinces. Conversely, Tilray's cannabis revenue declined by 13%, highlighting challenges in its core segment, despite gains in its alcohol business. Glass House is focusing on cost leadership, aiming to reduce production costs from $130 to $100 per pound.

Key metrics like adjusted EBITDA, gross margins, and cash flow offer deeper insights into financial health. This cannabis earnings guide can help you understand these.

On Tuesday, Trulieve (OTC: TCNNF) and SNDL (NASDAQ: SNDL) report earnings, followed on Wednesday by Aurora (NASDAQ: ACB), Scotts Miracle-Gro (NYSE: SMG), IIPR (NYSE: IIPR), Jazz (NASDAQ: JAZZ), Curaleaf (OTC: CURLF), and TerrAscend (OTC: TSNDF).

On Thursday, MariMed (OTC: MRMD), Cannabist (OTC: CBSTF), Verano (OTC: VRNOF), Village Farms (NASDAQ: VFF), Chicago Atlantic (NASDAQ: REFI), Jushi (OTC: JUSHF), and Green Thumb (OTC: GTBIF) will report. Closing out the week on Friday, Cresco Labs (OTC: CRLBF), Canopy Growth (NASDAQ: CGC), and Planet 13 (OTC: PLNH) will release their earnings.

Metrc's High-Tech Tracking: Costly but Crucial for Virginia

Metrc's new contract with Virginia brings its advanced tracking feature to the state’s medical cannabis market, combining software, RFID, and secure data to trace products from cultivation through sale. Though costly—a point raised at the recent Benzinga Cannabis Conference—this system enhances compliance and transparency, providing patients visibility into product origins and safety while boosting public confidence in the regulated cannabis market.

What Could Change Tomorrow

Voters in four states are weighing cannabis legalization measures that could reshape policies and economies. Florida’s Amendment 3 would legalize recreational marijuana for adults, allowing possession of up to three ounces if it passes with a 60% majority.

North Dakota’s Measure 5 would permit recreational use, allowing up to one ounce and three plants, while South Dakota’s Measure 29 would allow two ounces and up to six plants for personal use. Meanwhile, Nebraska’s Initiatives 437 and 438 would create a medical cannabis program for regulated patient access. But first, both must pass.

Since cannabis rescheduling didn’t happen in 2024, the timeline may be pushed into 2025 as the DOJ and DEA address regulatory complexities.

Congress could still advance cannabis-related bills, like the SAFE Banking Act, to signal support for the industry. But Cannabis reform isn’t just a presidential pen stroke away. The legislative path is complex, and any sweeping federal change requires a concerted Congressional effort, as only Congress can amend or repeal the Controlled Substances Act to fully legalize cannabis.

Judicial challenges may also push reform forward by pressuring regulatory bodies to act faster, but the process remains in the hands of lawmakers and courts.

Stories In The Spotlight:

• South Dakota's Adult-Use Cannabis Legalization Ballot Sparks Major Funding Race

• Mike Tyson's Marijuana Brand TYSON 2.0 Expands To Arizona Via Partnership With Desert Fairways

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 half a century of failed drug prohibition. Beyond his professional expertise, Pato is a committed advocate for social change, passionately working to promote harm reduction and reform drug policies.

BEFORE YOU GO

Were you forwarded this email? Click here to subscribe.

And be sure to check out our other newsletters:

Ring The Bell: Created for market enthusiasts by market enthusiasts, this twice-daily newsletter delivers top stories, fast movers, and hot trade ideas straight to your inbox. Subscribe here.

Future Finance: Where fintech, crypto, and the future of finance collide. Future Finance is a perfect lunch read packed with quick bites for industry enthusiasts. Subscribe here.

Real Estate Weekly: Ready to elevate your real estate game? This weekly newsletter provides actionable insights whether you are investing in REITs, owning property, or delving into the fast-growing world of fractional real estate. Subscribe here.

Advisor: Tailor-made for Financial Advisors, this weekly newsletter has industry-specific insights, analysis, and news. Subscribe here.