MSOS Dry Powder
The MSOS ETF has seen historic inflows in the past week. According to the Advisor Shares website, the fund has $150 Million in cash ready to deploy into US cannabis names. This $150 Million represents 12.2% of their overall holdings. If the MSOS allocates this cash in the order of their current holdings, GTBIF, TCNNF, and CURLF have the most to gain as they are its top holdings. Although these are the stocks that will see the most significant inflows, some smaller cap names such as AYRWF, TRSSF, and JUSHF are all ones the MSOS is overweight compared to the overall plant-touching US cannabis industry.
Florida Tracker
Sales in Florida have remained flat for the past three months. This past week, THC sales were down 2% and CBD sales down 3%. Looking to market share trends, Surterra Wellness, GrowHealthy (ITHUF), and Verano have been gaining market share, while Curaleaf, Trulieve, and Cansortium have been losing market share. Trulieve and Sunnyside both added one dispensary location to their footprint in the state.
GERMANY IS CLOSE
According to Bloomberg, negotiators for three political parties are closing in on a deal to legalize adult-use marijuana. Germany is already home to one of the largest medical marijuana markets in Europe, and negotiations are part of broader talks to form a new ruling coalition government. The Social Democrats, Greens, and Free Democrats are hoping to form a new administration by December. The deal is by no means done, but Germany would be one of the largest marijuana markets if it regulates recreational use of the drug. The effort is partially driven by fears that illicit marijuana is laced with heroin, which some media outlets have debunked.
