Musk vs. Harris: Cannabis Cash Clashes

Elon Musk throws cash at Florida's anti-cannabis campaign, Harris pitches legalization, and experts explore funding hurdles and global opportunities.

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Nicolas Rodriguez & Rolando Garcia
October 15, 2024

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Happy Tuesday, everyone! It may not be Friday, but we're here to make your midday a bit more interesting. Nico Rodríguez and Rolando Garcia here, checking in with the latest buzz—Musk's stirring up Florida's cannabis scene while Harris is making waves with her legalization push. Plus, we've got insider tips on cannabis financing and Germany’s booming market. Let’s turn this Tuesday around!

Elon Musk-linked group Faithful & Strong Policies funneled $500,000 to Keep Florida Clean, a campaign opposing Florida’s Amendment 3, which seeks to legalize cannabis.

While this donation is a drop in the bucket compared to the over $100 million raised by pro-legalization forces, including major support from Trulieve (OTC: TCNNF), it underscores the last-minute push against the measure. With polls showing 58% voter support, the race remains tight ahead of the November vote.

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Harris Touts Cannabis Legalization and Economic Uplift for Black Men

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Vice President Kamala Harris rolled out a new policy plan targeting Black men, with cannabis legalization as a cornerstone. The proposal includes legalizing recreational marijuana, which Harris says will create economic opportunities for Black entrepreneurs. Alongside this, she’s promising one million forgivable loans to boost Black-owned businesses.

The socioeconomic angle also extends to health, with Harris addressing disparities in Black men’s health and pushing for more educational opportunities. With polls showing a shift in voter loyalty, this initiative aims to reel in undecided voters.

Harris’s recent focus on Black men in her cannabis legalization plan could be driven by concerns over shifting voter loyalty. While she maintains 77% support among Black voters, recent polling shows about 13% are now leaning toward Trump, especially younger men.

According to Pew Research, “Black voters ages 18 to 49 are less likely to support Harris (68%) compared to those 50 and older (86%),” signaling potential vulnerability in this demographic.

Financing Meets Opportunity: Cannabis Capital Moves from Chicago to Germany

At the recent Benzinga Cannabis Capital Conference, experts offered crucial insights on securing funding and tapping into the booming German market. In the Cannabis Financing 101 panel, strategies like debt versus equity financing were discussed, with advice on navigating tricky cash flow issues and avoiding financing pitfalls.

Meanwhile, Germany was spotlighted as Europe’s cannabis leader, growing from 250,000 to 600,000 medical patients in under a year. With a projected $4 billion market, the opportunities are immense for those who can raise the right capital. Read more on our news site for in-depth coverage of both game-changing discussions.

Post-280E Tax Cash Boost

The potential removal of Section 280E in 2025 could be a game-changer for cannabis operators. A recent analysis by Viridian Capital Advisors shows that if 280E were eliminated, MSOs like Green Thumb (OTC: GTBIF) and Trulieve would see a major boost in cash flow, allowing for stronger financial flexibility.

The chart highlights how much these companies are losing to taxes under 280E and how significant the relief could be. Read more on how this could reshape cannabis finances in the coming years.

Stories In The Spotlight:

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 Public and Urban Policy doctoral student 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.

Rolando is an economist and regulatory analyst with a focus on the cannabis industry. Holding a degree in sociology and a PhD in economics, he combines his expertise in agrifood systems with his role as a cannabis market writer for Benzinga Cannabis.

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