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While you’re still savoring those leftovers and trying to dodge the Black Friday crowds, Nicolás Rodríguez and Patricio Liddle here, bringing you the lowdown on the latest cannabis headlines. RIV Capital’s revenue is soaring with big plans ahead, including covering 25% of the U.S. population across the South, Texas included. Meanwhile, cannabis reform faces setbacks on opposite sides of the globe. And don’t miss how Big Pharma’s rules could change cannabis. So kick back, relax, and let’s dive into these hot takes!

RIV-ing High: 186% Revenue Jump & Merger to Cover 25% of the U.S. 

RIV Capital (NYSE: RIV) (OTC: CNPOF) reported an 186% year-over-year revenue surge in Q3 2024, reaching $4.9 million, driven by strong growth in retail and wholesale cannabis sales. Retail revenue grew to $3.4 million, led by the Etain brand in New York, while wholesale increased to $1.6 million. Despite a $63.4 million net loss due to intangible asset impairments, adjusted EBITDA showed improvement with a $3.2 million loss. The company is set to merge with Cansortium Inc. in December 2024, creating a cannabis powerhouse serving 25% of the U.S. population through 42 dispensaries and eight cultivation facilities.

A Bloody Disgrace: Cannabis Reform Hits Global Roadblocks

Cannabis reform efforts hit a wall this week on opposite sides of the globe. Australia's Senate rejected the Greens' Legalizing Cannabis Bill 2023, with Senator David Shoebridge decrying the move as “a bloody disgrace” and vowing to fight on. In Costa Rica, the Constitutional Court struck down a recreational cannabis referendum, citing conflicts with international treaties. While both nations grapple with resistance, medical marijuana, and hemp industries show progress, offering hope for incremental change amid broader legislative setbacks.

Liberté, Égalité… Légalité? France’s Costly Cannabis Paradox

France, Europe’s top cannabis consumer, enforces strict prohibition while Germany thrives with progressive cannabis policies. Despite channeling 200,000 people annually through its judicial system, experts estimate France could unlock €2.8 billion in fiscal revenue and create 80,000 jobs by legalizing cannabis. 

Yet, political delays threaten its medical marijuana trial, leaving over 2,000 patients in limbo. As Germany’s cannabis market surges, France faces growing pressure to embrace legalization, offering a potential solution to mounting debt and an opportunity to reclaim its place in Europe’s economic and cultural vanguard.

Big Pharma Meets Big Cannabis: Rescheduling’s Billion-Dollar Question

The rescheduling of cannabis from Schedule I to Schedule III could revolutionize the industry, opening doors for big-box pharmacies like Walgreens and CVS to carry cannabis products. However, this transformation isn’t without challenges. Experts predict that meeting FDA pharmaceutical-grade standards and adapting to interstate commerce regulations could significantly increase operational costs for cannabis businesses.

Denise Pollicella, a cannabis attorney and head of Omnus Law‘s cannabis practice, highlights how rescheduling would push companies toward stricter compliance and pharmaceutical-grade production. States like Michigan, with rigorous testing standards, could dominate wholesale markets, while multi-state operators (MSOs) such as Trulieve (OTC: TCNNF), Green Thumb (OTC: GTBIF), and Curaleaf (OTC CURLF) are already investing in CapEx to meet these demands.

Interstate trade would reshape supply chains, allowing producers in states like Michigan, Pennsylvania, and Florida to sell across borders. Yet, this expansion would have complexities, including excise taxes and tighter regulations.

Additionally, rescheduling could catalyze mergers and acquisitions as smaller players struggle to adapt. Analysts foresee consolidation favoring companies with scalable production and strategic foresight.

While rescheduling promises new revenue streams, the looming uncertainty of federal policy keeps the industry on edge. Pollicella notes, "The real challenge isn’t the steps; it’s the political will to move forward."

Weekend Weed Reads:

• The Mold-Killing Machine For Weed That Would Survive The New Shark Tank Season

• Greenway Greenhouse Cannabis Sees 52% YoY Growth In Q2 Revenue Amid Rising Losses And Cost Challenges

• Cannabis Fintech POSaBIT Systems Q3 Revenue Plunges Amid Temporary Processing Disruptions, But Gross Profit Margins Surge

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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