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! Hope you enjoyed your weekend because the cannabis market sure didn’t rest. With the Farm Bill battles heating up, California cracking down on hemp THC, Missouri easing up, and D.C.’s gift economy facing new crackdowns the regulatory rollercoaster continues. Meanwhile, Ispire is navigating growth with sharp revenue increases, while others face delistings and financial shake-ups. Plus, Pelorus is making moves to take control of StateHouse after loan defaults—a lot is happening this Monday, so let’s dive into what you missed.

What The F'arm?: Can We All Just Get On The Same Page?

The hemp-derived products market is experiencing quite a regulatory rollercoaster, especially as the Farm Bill comes up for renewal. The introduction of two contrasting bills in Congress last week highlights significant differences in approaching the issue. Senator Ron Wyden’s (D-OR) Cannabinoid Safety and Regulation Act (CSRA) aims to create a federal framework for hemp-derived products, pushing for stricter regulations and a ban on synthetic cannabinoids like Delta-8 THC. In contrast, Senator Rand Paul’s (R-KY) HEMP Act seeks to relax THC limits, tripling the cap from 0.3% to 1%.

This comes at a time when Governor Gavin Newsom's ban on hemp THC products has taken effect in California, while Missouri’s regulators backtracked on similar measures. With such a turbulent backdrop, the call for clear and cohesive regulations starts to sound like the question in this subheading.

PRESENTED BY CANNABIS CAPITAL CONFERENCE

D.C.’s 'Gifting' Regulation On The Brink. Iowa Dems Push For Legalization

As the presidential race heats up, discussions surrounding drug policy continue to emerge as one of the central points in the debate. However, neither side is genuinely addressing the root cause of pretty much all drug-related issues: the failed War on Drugs. As a result, users continue to deal with the consequences, and the political maneuvering around cannabis reform—such as Biden’s marijuana pardons and the delayed rescheduling efforts—offers little in the way of real, lasting change.

Meanwhile, D.C.’s cannabis 'gifting' economy faces a crackdown, pushing unlicensed stores toward the regulated market, and the landscape at the state level is equally dynamic. In Iowa, Democrats are betting on cannabis reform to boost voter support, highlighting that over 60% of residents favor legalization as a strategy to sway undecided voters.

Delistings, Splits, And A Vape Escape

2024 has been a wild ride for cannabis companies. Bright Green and Heritage Cannabis hit the delisting wall, struggling to keep up with financial and market rules. Aurora (NASDAQ: ACB), though, played it smart with a 1:10 reverse stock split, keeping its Nasdaq spot secure. Meanwhile, High Tide (NASDAQ: HITI) is riding high with 486% growth, earning a top spot among Canada’s fastest-growing businesses.

On the innovation front, Ispire Technology (NASDAQ: ISPR) saw a 31% revenue jump to $151.9 million, driven by their bet on vaping as the future of cannabis consumption. With partnerships like Acreage Holdings (OTC: ACRDF) and new products like their One technology -which avoids leaking, Ispire addresses common industry challenges.

All Loan and No Play: Pelorus Seeks to Take Over StateHouse

Pelorus Fund REIT is stepping in after StateHouse Holdings defaulted on four loans, pushing for a court-appointed receiver to manage the struggling cannabis company. Despite a 10% bump in Q2 revenue, StateHouse faces a hefty $156 million working capital deficit. Pelorus aims to protect assets while restructuring the business.

Stories In The Spotlight

• New York Legal Cannabis Sales Poised To Reach $1B, Following Crackdown On Illicit Retailers

• 'Get Ready For A Nationwide Game Of Whack-A-Mole': What California's Hemp Ban Means For The Industry

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: Where we highlight the movers and the losers, the upgrades and the downgrades, the top stories and opportunities in the trillion dollar REIT and real asset industry. Subscribe here.

Advisor: Tailor-made for Financial Advisors, this weekly newsletter has industry-specific insights, analysis, and news. Subscribe here.