📈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 folks! Nicolás Rodríguez and Patricio Liddle writing today. Two heavyweights at the Benzinga Cannabis Capital Conference painted a bold picture of the industry's future. Ross Gerber, CEO of Gerber Kawasaki, called cannabis “one of the biggest opportunities for investors outside of AI.” With federal legalization on the horizon, Tim Seymour spotlighted the commerce clause case as a potential "silver bullet" for the industry. And remember—this isn’t just a spectator sport. The Marijuana Policy Project’s voter guide shows you how to pressure senators and shake up the system.

“Tsunami Of Money, Second Only To AI”

Multi-million investors, Ross Gerber and Boris Jordan laid out their vision for the future of cannabis at the Benzinga Cannabis Capital Conference in Chicago. Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, didn’t hold back, calling cannabis one of the biggest investment opportunities outside of AI. “And that’s why I’m here. Because I think cannabis is one of the biggest opportunities for investors outside of things like AI,” he said.

Later that same day, Curaleaf’s CEO Boris Jordan outlined bold plans for European expansion, expecting the business to double next year. With strong markets in Florida and Arizona, Curaleaf is already seeing early success in Europe, where it's projected to generate over $100 million in sales this year at nearly 50% margins.

“I can’t tell you the tsunami of money that would go into this industry if it was legalized because young people today want to invest in cannabis companies,” Gerber added. Stay tuned to Benzinga Cannabis for the latest and most important developments—right from the source—before you read it elsewhere, without a link.

PRESENTED BY CANNABIS CAPITAL CONFERENCE

Commerce Clause Victory: Could It Be Cannabis' Silver Bullet?

The buzz at the Benzinga Conference centered on a potential game-changer for the industry. Tim Seymour, portfolio manager of the Amplify Seymour Cannabis ETF, zeroed in on a critical legal battle that could drastically impact the cannabis industry: the commerce clause case.

Seymour highlighted the far-reaching consequences of a potential win, noting that this case might be the closest thing to a "silver bullet" for the cannabis sector. The case challenges the federal government’s ability to penalize state-legal cannabis businesses under the dormant commerce clause, which currently prevents interstate cannabis trade and imposes severe tax restrictions like the infamous 280E provision.

Jason Wild, CEO of TerrAscend, said, "If we win the case, 280E goes away," highlighting how this would lift a major tax burden that prevents cannabis companies from deducting expenses.

High Expectations: The Cannabis Industry's Next Big Leap

Yesterday's opening day of the Benzinga Conference was packed with insights into the industry's future. The potential rescheduling of cannabis could unlock hundreds of millions in cash flow by eliminating the burdensome Section 280E tax restrictions. Experts like Aaron Grey highlighted that this could be transformative, allowing operators to invest in growth, M&A, and debt reduction.

However, rescheduling isn't a magic bullet. Frank Segall warned that it won't solve issues like market oversaturation or lack of investor capital. Companies that are not paying taxes now may face serious consequences later.

Amid this potential growth, platforms like Elon Musk's X are poised to play a significant role. Alexa Alianiello, head of cannabis at X, emphasized that it's the only major social platform where cannabis businesses can openly advertise and engage with consumers—an opportunity for brands looking to expand their reach and capitalize on the industry's evolution.

Nasdaq's Cannabis Giants: Canopy’s Brand-First Strategy Vs. Tilray And Aurora

Canopy Growth is focusing on a brand-first, asset-light strategy, scaling U.S. brands like Wana and Jetty without heavy cultivation investment. Analyst Pablo Zuanic points out Canopy’s U.S. assets drive its $724 million enterprise value, setting it apart from Nasdaq peers Tilray and Aurora, which rely on relatively more capital-intensive models.

Hit ‘Em Where It Counts: Target Senators And Spark Cannabis Reform

The Marijuana Policy Project's voter guide is your key to targeting senators and pushing for cannabis reform. With 34 Senate seats up for grabs, now is the time to act. Use the guide to see where your senators stand on cannabis policy, then make your move—write emails, make calls, or even start petitions urging them to support bills like the MORE Act and SAFE Banking Act. Your voice can sway the future of cannabis reform. Visit www.mpp.org for the full guide.

Stories In The Spotlight:

• 100K Medical Marijuana Signatures In Nebraska Under Investigation Amid Alleged Fraud Questions

• California's Largest Cannabis Delivery Service Closes Down, Lays Off 500 Workers

• Crafting A 'Mixed Martial Arts' Plant: Texas Scientists Develop Drought-Resistant Hemp Strain

• NBA Legend Carmelo Anthony Gets Into Cannabis Industry, Leveling Playing Field For New Operators

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.

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.