NDAA TRACKER
Yesterday, the MSOS declined 2.6% as volume accelerated 69% day-over-day. The MSOS is now down four straight days and six of the last ten days. As the rally was fading on 11/15, I speculated on Twitter, "let me guess the news causing the sell-off - McConnell said he doesn't want anything other than defense-related amendments to NDAA." I was close as Politico reporter Natalie Fertig was all over Twitter yesterday posting:
- "I do not believe we should spend nothing on defense. There are real threats to our nation and real interests we must defend. There are some situations that may require military solutions. But this defense bill goes far beyond that threshold." - Elizabeth Warren.
- "WaPo confirming our {Politico} reporting from the last few months: Booker doesn't want #SAFEBanking in the NDAA, and Schumer is backing him. The convo is no longer IF Congress is willing to pass cannabis legislation — the devil is now in the details."
- "#SAFEBanking sponsor @SenJeffMerkley puts it bluntly in his story: "As long as Sen. Schumer and Sen. Booker are opposed, it's not going to happen."
MSOS Holding Cash
Instead of purchasing more stock in the last four days, the MSOS has only grown its cash holdings. On 11/14, the ETF had cash of $150 million, representing 12.2% of their total holdings. As of yesterday, the MSOS has $179 Million in cash, representing 14.5% of their overall holdings. In total, the MSOS manages about $1.24 Billion. It seems as though they are waiting for the correction from the news of Safe not being added to the NDAA to come before deploying this capital. Currently, their top holdings are Trulieve, Green Thumb, and Curaleaf, in that order. The names which the ETF is most overweight are AYRWF, TRSSF, and JUSHF.
Schumer Interview
Chuck Schumer appeared in an interview with a channel called Green Enterprise. His main talking points were that he wanted to keep the "Big Boys" out of the marijuana industry and create opportunities for smaller operators when it is federally legalized. He mentioned that his bill would do that. However, he made no mention of the Safe Ac,t, which is a much more popular bill compared to the CAOA. "We're going to make sure that the money that's made doesn't just go into the federal treasury, but goes into good kinds of activities in terms of restorative justice, dealing with community violence initiatives, and dealing with so many other things—community centers and things that will have kids have a great place to go and some hope so they won't get caught up by the drug dealers and anybody else," said Schumer. Although these are essential things when legalizing, they are not popular amongst the other side of the aisle. Under Nancy Mace's States Act, the excise tax revenues would go to funds supporting veterans and small businesses rather than communities hit by the war on drugs the most. Unfortunately, Republicans do not see the same perspective as the democrats with legalization, so the CAOA is not a bill that will likely get passed under the current senate.
Germany Legalizes
Germany legalized recreational cannabis yesterday. A group called the "traffic light" coalition pushed for a change in legalization. It is expected the German market will produce revenues of about USD 5 Billion a year. Legalization will also create over 27,000 jobs across the country. Having a regulated market protects the quality and prevents the transfer of contaminated substances. It also guarantees the protection of minors, said, politicians.
TILT Holdings Inc.
TLLTF is a LONG
TLLTF announced that the Massachusetts Cannabis Control Commission had awarded the final adult-use cultivation, manufacturing, and retail establishment license to Commonwealth Alternative Care's Taunton location. Retail and wholesale sales of adult-use cannabis will commence upon final inspection by the CCC. "Receiving the adult-use licenses for our Taunton location on the heels of obtaining final approval to commence adult-use operations at Brockton are key pieces to unlocking exponential growth in Massachusetts. The activation of these licenses represents a significant turning point for TILT, providing our wholesale and brand partners greater visibility and access into the market and delivering shareholder value. We look forward to deepening our community impact, strengthening our industry relationships, and offering the best-in-class products and services to all consumers in the state." This announcement follows the CCC's final approval for adult-use sales at CAC's Brockton location in October and its recent order authorizing CAC to commence operations at that location. The table is set for 2022.
