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It’s Monday again, and this newsletter comes with your third cup of Joe to keep you going until tonight. We’re Nicolás Rodríguez and Patricio Liddle here, bringing you a microdose of cannabis information—just enough to keep you informed and up-to-date on the latest industry news. The recent appointments to lead the FBI and the DEA could potentially signal a shift in budget allocations. Could this trend have implications for cannabis policies? Plus, several global cannabis companies have released their earnings reports, and the cannabis industry seems to be gaining momentum in the Southern Hemisphere. Let’s dive in.

Pot Luck: Budding Profits & Withering Losses

The cannabis industry continues to be a mixed bag of green shoots and red flags. Here's a narrated look at the latest financial performances of some key players:

Entourage Health (OTC: ETRGF): Revenue bloomed 8% YoY to US$6.7 million, and net losses withered 15% to US$5.9 million. Gross profit reached US$2.1 million.

Ayurcann Holdings (OTC: AYURF): Net revenue surged 28% year over year to US$5.9 million, but the company's net loss widened to US$253,000.

Red White & Bloom (CSE: RWB): Revenue remained flat year over year at US$15.4 million, but the net loss narrowed to US$1.3 million. After fair value adjustments, gross profit rose to US$7.3 million, and adjusted EBITDA reached US$2.7 million.

PharmaCielo (OTC: PCLOF): Revenue soared 270% YoY to US$0.9 million. Gross profit increased to US$264,000, and the net loss decreased to US$1.8 million. Adjusted EBITDA improved to a loss of US$414,000.

Trump's Kash Patel FBI Pick And DEA Nominee

Trump nominated Kash Patel, a former national security official, to lead the FBI and Chad Chronister, a Florida sheriff, as the Drug Enforcement Administration (DEA) administrator. Both appointments, subject to Senate confirmation, align with Trump’s broader law-and-order agenda. Patel's vision for the FBI involves a sweeping restructuring, which includes reforms that could impact how federal resources are allocated to drug enforcement, including cannabis-related offenses.

"We're going to come after the people in the media who lied about American citizens who helped Joe Biden rig presidential elections," Patel told Steve Bannon in a podcast last December.

Today, Monday 2nd, the DEA launched its inaugural hearing to address the Biden administration's proposal to reclassify marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA).

According to a DEA advisory released on November 26, the primary goal is to organize the procedural groundwork for addressing the merits of rescheduling. While this initial meeting is procedural, it sets the stage for a series of substantive discussions slated for 2025 that could redefine the landscape of cannabis regulation in the United States.

Latin America's Cannabis Momentum

Big things are happening south of the continent. In Uruguay, history is about to be made as psychoactive cannabis seeds will be sold legally for the first time. At ExpoCannabis Uruguay on December 6th, folks can pre-order these seeds. “This is a game-changing move”, said Mercedes Ponce de León, founder of the exposition, which reinforces Uruguay's pioneering role in the cannabis world.

Over in Brazil, the Superior Court of Justice just gave the green light to cultivating, processing, and selling industrial hemp for medical use. This landmark decision opens up a massive market in a country of over 200 million people, potentially turning Brazil into a heavyweight in the global medical cannabis scene.

Not to be outdone, Paraguay is gearing up to reform its THC limits to boost its economy. The government aims to increase the allowable THC content beyond the current 0.5%, positioning Paraguay as a leading exporter of cannabis products. With over 20 authorized dispensaries already educating and serving the community, Paraguay is set to make some serious moves on the international stage.

Germany's Weed Woes Worsen

While Latin America celebrates progress in cannabis reform, Germany is grappling with challenges in its legalization rollout. Loopholes in the law, like restrictions on wiretaps and online surveillance, are complicating efforts to combat the illicit market. A recent high-profile smuggling case has reignited debate, with justice ministers scrambling to close legal loopholes.

Hawaii Caregiver Crisis Looms: Patients Face Uncertain Future

A looming crisis is threatening to disrupt the lives of thousands of Hawaii’s medical marijuana patients. Due to legal oversight, caregivers who grow and process cannabis for patients will be banned after December 31, 2024. This could force many patients to rely on the black market or go without their much-needed medication.

The ban is not only a health issue but also an economic one. Caregivers provide a vital service, especially in rural areas, and their loss could have a significant impact on local economies. Furthermore, this crisis highlights the ongoing regulatory challenges faced by Hawaii’s medical marijuana program. A more streamlined and consistent regulatory framework is crucial to ensure patient access and public safety.

If you’re enjoying these updates, share this newsletter with your network and help us spread the word!

Stories In The Spotlight:

• Yale Center Invests $600K+ On Cannabis Research Grants: These Are The Key Conditions Being Studied

• Silicon Valley Titans And Their Psychedelic Journeys: The Experiences That Shaped Them

• Cannabis Retailer Tokyo Smoke Moves Forward After Major Restructuring

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.

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