California's Sales Trends: A November Perspective
In the month of November, a notable shift was observed in the sales trends of California. Month-over-month, there was a decrease of 1.8%, while the year-over-year analysis revealed a more pronounced downturn of 12.1%. Interestingly, when examining the data over a two-year span, the decline in sales showed signs of easing, improving by 110 basis points to a contraction of 10% YoY.
Canopy Desperate Move: A 1-for-10 Share Consolidation to Sustain Nasdaq Listing"
Canopy Growth Corporation (CGC) experienced a significant premarket today. This decline followed the company's announcement of a 1-for-10 share consolidation, a strategic step to maintain compliance with Nasdaq's listing requirements. Under this consolidation plan, every ten shares of CGC's issued and outstanding common stock will be merged into one post-consolidation share. This move is contingent on receiving the green light from the Toronto Stock Exchange (TSX). Canopy Growth's investors backed the decision for this consolidation during a special shareholders' meeting held on September 25. This step reflects the company's proactive approach to align with market regulations and ensure its continued presence on a prestigious platform like Nasdaq. The consolidation process is scheduled to be effective from December 15. Following this, CGC's ordinary shares are set to commence trading on a split-adjusted basis at the market opening on December 20, both on the TSX and Nasdaq. Judy Hong, the Chief Financial Officer of Canopy Growth, commented on the consolidation. She highlighted that this move is not just about adhering to Nasdaq's bid requirement but is also a strategic effort to enhance the marketability of the company's shares.
Green Shift: Navigating the Tides of Change in Cannabis Rescheduling
Should the DEA reclassify cannabis to Schedule III under the CSA, the ramifications would extend far beyond federal policy. According to an article in MJ Moment, this shift could ignite a cascade of legal transformations at the state level. Trigger laws in numerous states would either automatically align their scheduling with the federal change or kickstart a reevaluation process. This domino effect promises to touch various spheres, including politics, criminal justice, and medical cannabis. Our summary thoughts are below:
Positive themes From Rescheduling
Legal and Medical Access Expansion: Rescheduling marijuana to Schedule III would likely broaden access to medical marijuana in states like Texas, where THC limits are currently stringent. In states where cannabis is entirely illegal, such as Idaho, this change could introduce legal medical marijuana, albeit under specific conditions.
Political and Social Shift: The reclassification is expected to influence the broader conversation around cannabis, altering perceptions among healthcare professionals, government officials, law enforcement, and the general public. Recognizing marijuana's medical utility and lower abuse potential under Schedule III could lead to more informed, health-centric discussions and policies.
Research and Industry Growth: Rescheduling would facilitate more extensive research into cannabis, currently hindered by its Schedule I status. This could lead to new medical discoveries and innovations. Additionally, the marijuana industry might see significant growth and development, with potential for interstate commerce and an expanded market.
Negative Themes From Rescheduling:
Regulatory Complexity and Inconsistency: The shift to Schedule III would trigger a complex web of state-level legal adjustments, with varying responses across states. This could lead to a patchwork of regulations, creating confusion and inconsistency in enforcement, legal standards, and access across the country.
Opposition and Political Hurdles: There is notable opposition to rescheduling, particularly from certain political figures and groups. Efforts like the amendment proposed by Congressman Pete Sessions and the bill introduced by two Republican senators to restrict the DEA's rescheduling authority highlight the change's political challenges and resistance.
Potential for Limited Impact in Some Areas: In states with already established legal medical or adult-use cannabis, the impact of rescheduling might be minimal. This could lead to a disparity in the benefits seen across states, with some experiencing significant changes and others seeing little to no effect on their existing cannabis policies and industry practices.
