SAFE is Gaining Momentum
From Politico @Natsfert on Twitter: New this morning: 24 senators signed a letter organized to leaders of both chambers, asking them to keep the #SAFEBanking Act (which makes it easier for banks to serve weed biz) in the COMPETES bill. The letter was signed by 5 Republicans and led by @SenJeffMerkley and @SenJackyRosen. 18 Democrats and one independent also signed the letter. Nearly a quarter of the Senate pushes their leadership to include the language in the China competitiveness bill.
What will Schumer do?
Delaware #LFG
An effort to legalize adult-use marijuana in Delaware has gained new strength after a setback earlier.
Democratic Rep. Ed Osienski, whose previous legalization bill failed on the House floor by just two votes, has a new strategy: He’s running one bill to decriminalize personal possession and gifting and another bill to set up a regulated market. “I would hope my colleagues would just want to get this thing across the finish line, so we don't have to start all over again,” Osienski said in an interview, adding, “that’s what I’ll do if I have to.” The decriminalization bill passed the House floor 26-14 earlier this month. The regulation bill is currently in the House Appropriations Committee. Both bills look strong in the Senate, but Democratic Gov. John Carney could still be a problem given his longstanding opposition to legalization. For years, Osienski has been trying to legalize marijuana but has run into hurdles due to the peculiarities of the state Legislature. In Delaware, any legislation that creates a new tax must be approved by a three-fifths majority. That supermajority requirement has made it difficult to pass comprehensive legislation that prioritizes social equity — provisions supported by progressive Democrats — while picking up the few Republican votes needed to reach that threshold. Separating Osienski's proposal into two bills has seemed to help the effort. Even though it only needed a simple majority to pass, the decriminalization bill topped the three-fifths threshold on the House floor. The decriminalization bill is in the Senate judiciary committee and is expected to sail through that chamber thanks to the support of Senate leadership, Osienski said. But Carney has been a consistent opponent of legalizing marijuana. While he could veto the bills, the Legislature could override with a three-fifths majority vote.
Trulieve Cannabis Earnings
TCNNF is a LONG
TCNNF recorded better than expected revenue for 1Q22 on sequential improvements across multiple financial measures for the quarter.
Revenue jumped 64% YoY and 4% QoQ to reach $318.3M, while gross margin reached 56% from 43% in the preceding quarter and 70% in 1Q 2021. The net loss for the quarter indicated a sequential improvement of 55% to reach $32.0M from $30.0M last year. However, (A) EBITDA was 33% flat QoQ versus 47% YoY. Management reiterated the previously issued revenue guidance at $1.3B – $1.4B and adj. EBITDA at $450M – $500M. However, the company projects further improvements in 2H 2022 compared to the first half. “In 2022, we expect our strong balance sheet, access to capital, and financial discipline will uniquely position us to capitalize on market opportunities created by the macroeconomic factors impacting our industry," Chief Executive Kim Rivers noted ahead of the earnings call at 8:30 A.M. EST.
More after the earnings call
