Capital Punishment
We believe the LONGs on our list will be survivors, but many publically traded companies will disappear in 2023.
The MSOS was punished yesterday, as cannabis banking legislation once again failed to make the cut in a massive government spending package. Its removal again dashes hopes Capitol Hill might help the struggling industry and put the weaker player on notice. The pattern has become almost routine, where certain senators and representatives say they support the legislation, but in the end, it does not make it into the final package. Earlier this month, Senate Minority Leader Mitch McConnell took credit for blocking it from inclusion in the National Defense Authorization Act and suggested he would do the same with the omnibus. We had hoped for some Schumer horse trading to get it included, but he eventually rolled over as usual.
We will discuss the path forward on our Q&A call tomorrow.
Relinquishment of warrantS by Altria
Cronos Group (CRON) is a Hedgeye Cannabis Best Idea Long.
In March 2019, Altria acquired, through its subsidiaries, a 45% ownership interest in Cronos and the Warrant. Cronos Group announced that on 16-Dec-22, Altria Group, Inc. (MO) notified the company that its wholly owned subsidiary, Altria Summit LLC, relinquished a warrant to subscribe for and purchase up to 84.2M common shares of the company at a per share exercise price of C$19.00 and all rights that it may have held in the Warrant or any common shares underlying the Warrant for no consideration. The voluntary relinquishment of the Warrant does not affect any rights of Altria under the Investor Rights agreement between the company and Altria, dated 8-Mar-19. Altria owns 156.6M common shares of the company beneficially and has four designees on the board of the company, one of whom is independent.
Monthly Q&A + Industry Trends Call.
CALL DETAILS:
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We are hosting our monthly Q&A and Cannabis Industry Trends Update call for subscribers next Wednesday. We will answer questions regarding our position monitor, our process, and legalization and give an update on our state-by-state cannabis sales tracker.
Please submit your questions in advance to - You can also submit them live during the event, but chances are you will get a better answer from us by sending them in advance!
Green Thumb Leadership changes.
Green Thumb Industries (GTBIF) is a Hedgeye Cannabis Best Idea Long.
GTI announced the appointments of Anthony Georgiadis to President, Matt Faulkner to CFO, Bret Kravitz to General Counsel and Secretary, Rachel Albert to Chief Administrative Officer, and Dawn Wilson Barnes to the company's board. Georgiadis joined GTI in 2015 and has played an integral role in growing the company into one of the leading multi-state cannabis operators in the U.S. Since 2017. He has served as CFO, directing the company's cash flow and financial planning while overseeing operations for other areas of the business. Faulkner joined GTI in 2018 and was appointed Chief Accounting Officer in 2020.
