DOJ Ignoring Booker/Warren?
According to POLITICO, the DOJ had until October 20 to respond to a letter sent by Sens. Cory Booker (D-N.J.) and Elizabeth Warren (D-Mass.), but no response has yet been received. The letter called on Garland to use his authority under the Controlled Substances Act to remove marijuana as a scheduled drug in consultation with the HHS secretary. "Decriminalizing cannabis at the federal level via this descheduling process would allow states to regulate cannabis as they see fit, begin to remedy the harm caused by decades of racial disparities in enforcement of cannabis laws, and facilitate valuable medical research," the senators wrote. While Congress could pass a bill to decriminalize marijuana, the executive branch also has power over drug scheduling decisions. For example, the attorney general can request a scientific evaluation from the HHS secretary, including recommendations for moving the drug to a lower schedule or removing it entirely from the list of controlled substances. In the past, HHS Secretary Xavier Bercerra had defended California's marijuana legalization laws when he served as the state's attorney general. "Cannabis is last century's argument," he said in a 2017 interview with POLITICO.
TLRY'S BS Press Release
Yesterday was a prime example of a meaningless press release from TLRY. According to the PR, TLRY was selected by the Luxembourg Ministry of Health as a supplier of Good Manufacturing Practice (GMP) certified medical cannabis products for the country's medical cannabis program. Following this selection, Tilray will supply pharmaceutical-grade medical cannabis products, including extracts and dried flowers with different degrees of THC and CBD for patients with varying medical conditions. Tilray operates two GMP-certified cannabis cultivation facilities in Europe located in Cantanhede, Portugal, and Neumunster, Germany. The company now offers branded medical cannabis in 20 countries, according to Chairman and CEO Irwin Simon. Here is what's crucial that was left out of the PR: (1) How much is this deal to supply Luxembourg worth to $TLRY?; (2) Tilray is the 3rd LP to supply Luxembourg, after Aurora and Canopy; (3) according to MJ BIZ, the current market in Luxembourg is appears to be a $3.5M market; (4) the population in that country is less than 700,000.
CNTMF Moves
CNTMF is a USA Long.
Cansortium was down 8.5% on the day yesterday after being up 26% since last month. Though there is no explicit news on the stock, Robert Beasley, Cansortium CEO, participated in a podcast at Cannabinoid Connect. In the interview, he says, "Since I have been sitting in this chair, we have always had an offer or multiple ones. The issue with the offers is it has to be the right time for the buyer and the seller." Confirming our beliefs, Cansortium is a hot target for M&A activity and will likely be acquired shortly. The company has assets in Florida, Pennsylvania, Michigan, and Texas, which are very attractive to the larger MSOs. The cannabis space is consolidating every day, and Cansortium will continue to be an attractive target.
Click Here to listen to the podcast.
New Cannabis REIT
Chicago Atlantic Real Estate Finance, a newly-formed commercial mortgage REIT focused on the cannabis industry, filed on Tuesday with the SEC to raise up to $129 million in an IPO. Chicago Atlantic Real Estate Finance is a newly-formed commercial real estate finance company whose objective is to originate, structure, and invest in first mortgage loans and alternative structured financings secured by commercial real estate properties. Its current portfolio comprises senior loans to state-licensed operators in the cannabis industry, secured by real estate, equipment, receivables, licenses, or other assets. As of September 30, 2021, the company's portfolio includes one loan subordinate to a first mortgage. The Chicago, IL-based company was founded in 2021 and booked $5 million in revenue for the 12 months ended September 30, 2021. It plans to list on the Nasdaq under the symbol REFI. Chicago Atlantic Real Estate Finance filed confidentially on August 10, 2021.
