Market Buzz 🐝: Cannabis Earnings, Scaramucci’s Take, and Sports Legends

As earnings roll in, Scaramucci signals caution, while Tyson and Isiah Thomas make their mark in cannabis and hemp.

Author

Nicolas Rodriguez
October 16, 2024

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 everyone! Nico Rodríguez here, bringing you the latest market buzz. Cannabis earnings season is upon us, with AFC Gamma and Ascend Wellness about to release their financial results. While some anticipate growth, industry heavyweight Anthony Scaramucci sees consolidation on the horizon. But it's not all about numbers—Mike Tyson and NBA legend Isiah Thomas are making headlines, pushing cannabis and hemp innovations into the spotlight.

AI-Generated Image.

As cannabis earnings season looms, AFC Gamma (NASDAQ: AFCG) and Ascend Wellness (OTC: AAWH) prepare to reveal their quarterly results, hoping to weather the industry's ongoing storm. AFC Gamma reports on November 13, following four major lending deals totaling $70 million, while Ascend Wellness presents on November 12 after refinancing $235 million in senior secured notes.

Ascend reported a 15% year-over-year revenue growth in Q2, reaching $141.54 million, with a 33% rise in adjusted EBITDA.

Meanwhile, a new report forecasts the U.S. cannabis industry will need up to $130 billion in capital. U.S. cannabis retail sales are projected to skyrocket from $28.8 billion in 2023 to $87 billion by 2035.

Fuel Your Fire at MJBizCon

The premier cannabis event of the year, happening December 3-6 in Vegas! Reunite with the Canna community, attract investors, forge game-changing partnerships, and gain the critical insights you need to thrive in 2025.

With over 1,400 exhibitors, pre-show forums, a 3-day conference with 70+ sessions and 200+ speakers, and endless networking opportunities, MJBizCon is the ultimate investment in yourself and your business.

Buy your ticket before early bird rates expire October 17!

Scaramucci Sees Smoke, Not Fire, in Cannabis Stocks

Anthony Scaramucci, founder of SkyBridge Capital and former White House Communications Director, isn’t optimistic about cannabis stocks, saying "the bloom is off the rose" as the industry faces oversaturation and increased regulation. He predicts a consolidation phase similar to alcohol and tobacco, where only the strongest companies survive.

While he's more bullish on cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), Scaramucci believes strategic opportunities remain in cannabis. Still, the era of rapid speculative growth is over, signaling a shift towards patient, long-term investment strategies.

Polls Show GOP Districts Eye Cannabis for Jobs

AI-Generated Image.

Recent polls in Pennsylvania’s Republican districts reveal strong voter concerns over unemployment and economic opportunities. Support for cannabis legalization is growing, with 72% favoring reform in some areas like Beaver County.

In HD 44 (Allegheny County), 67% of voters, including 56% of Republicans, back legalization. These shifts are driven by hopes for job creation and local economic boosts, as voters look to cannabis as a potential lifeline. This growing support in key GOP districts could serve as a model for conservative regions grappling with similar socioeconomic issues.

Mike Tyson is making waves both in and out of the ring. TYSON 2.0 has teamed up with Royal Queen Seeds to launch a limited-edition Jawbreaker cannabis box, commemorating his return to boxing.

Meanwhile, NBA legend Isiah Thomas is shaking up the automotive industry with hemp-based packaging through One World Products (OTC: OWPC), partnering with Flex-N-Gate for sustainable auto part containers. While Tyson hits hard in cannabis, Thomas aims to replace plastics in cars with hemp, marking a new era for eco-friendly auto solutions.

The CBD Circus Continues

It’s 2024, and yet the absurdity of CBD-related legal drama continues to reach new heights. In the U.S., the Supreme Court is split over the case of Douglas Horn, a truck driver who lost his job after unknowingly ingesting THC from a CBD product. Horn, trying to turn his wrongful firing into a full-fledged RICO lawsuit (yes, the one meant for fighting organized crime), has left the justices at odds.

Horn's fate—and whether CBD ignorance qualifies for triple damages under RICO—remains uncertain, with some fearing this case could set a bizarre precedent for civil lawsuits.

Meanwhile, halfway around the world in Dubai, Georgia veteran Charles Wimberly’s vacation spiraled into a legal nightmare when airport officials found his medically prescribed CBD pills. Despite showing his prescription, authorities charged him with drug trafficking, leaving him stranded with no court date in sight. The kicker? Wimberly was carrying only five CBD pills, far below any rational threshold for trafficking.

Yet, the bureaucratic black hole he's stuck in—complete with diabetic shocks and deteriorating mental health—seems to get deeper by the day.

Thank you for reading! If you enjoy this newsletter and want to stay ahead in the cannabis world, share it with your friends and colleagues—spread the word! And if you're not already subscribed, what are you waiting for? Join us to keep up with the latest insights, big moves, and industry shifts. Let’s grow together! đŸŒ±

Stories In The Spotlight:

Our Writer Today

NicolĂĄs 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.

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.