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Happy Friday, everyone! Nicolás Rodríguez and Patricio Liddle here, thrilled to kick off your weekend with the latest in cannabis news.

But first, a big shout-out to Steve Bloom and CelebStoner.com for featuring Benzinga Cannabis Daily in their list of Top 20 Cannabis Newsletters! Forward this newsletter to you friends and let them join in on the fun.

Let’s dive into this week’s must-know stories and keep you ahead of the curve!

Hemp’s New Hurdles: Big Alcohol Wins

New Jersey is tightening its hemp regulations under Governor Phil Murphy's new law, much to the dismay of the hemp industry and the delight of Big Alcohol. Hemp businesses face new restrictions under Murphy's bill, while the alcohol industry can sell THC-infused beverages with fewer regulations than cannabis companies. Meanwhile, hemp expert Jim Higdon calls for unity between hemp and cannabis industries. With states like California escalating crackdowns, Higdon argues a united front is the only way forward. 

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Real Estate Grabs, Property Power Plays

Green Thumb Industries just secured $150 million in financing to grow its retail and cultivation operations in a capital-tight market, while Verano Holdings is also on the move, expanding to 79 Florida dispensaries as it positions itself for a potential $4 billion windfall if adult-use cannabis is legalized in November. Over in Nevada, Planet 13 is beefing up its presence by acquiring a Las Vegas dispensary for $6.9M. 

Emerging Markets: Sales Soar, Crackdowns Continue

Michigan is smashing sales records, reaching $295.4 million in August sales, and Connecticut is getting a boost in sales thanks to extra weekends. Meanwhile, New York is (surprise!) cracking down on unlicensed shops and Leafly’s partnership with the New York Cannabis Retail Association aims to curb illegal sales, but with over 1,000 shops shut down, it feels like they’re playing a never-ending game.

Undervalued MSOs: Poised For A Comeback?

The MSO EV/NTM EBITDA multiples chart, provided by Viridian Capital Advisors, highlights the sharp market fluctuations cannabis stocks have faced after key regulatory and legislative events. 

At its all-time peak in February 2021, multiples soared to 24.13x, but recent readings have dropped to 6.64x as of September 2024.

This trend suggests that U.S. MSOs, currently undervalued, could see significant gains, especially if legislative progress continues. Investors may see price multiples double following the

Weekend Weed Reads:

• Billion-Dollar Marijuana Giant Buys Another Brewery From Molson Coors, Expands Great Lakes Footprint

• Cannabis Regulator Whistleblower Sues California, Alleges Retaliation After Reporting Lab Testing Misconduct

• Japan Criminalizes Cannabis With 7-Year Prison Sentence, Medical Marijuana Remains Legal

• 20M Germans Could Benefit From Medical Marijuana But Most Struggle To Find Prescribing Doctors

• Cannabis Retail Giant High Tide Ramps Up Offering For Millions Of Customers

• MDMA Therapy For PTSD Faces FDA Delay: Are There Other Ways Forward?

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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