SCHUMER’S AGGRESSIVE PUSH
The Senate Majority leader says marijuana legalization is a top priority, and he’s vowing to release legislation early this year that will “ensure restorative justice, protect public health and implement responsible taxes and regulations.” Two other Democratic senators joined Schumer’s for overhauling federal cannabis policies: Finance Chair Ron Wyden of Oregon and Cory Booker of New Jersey. There’s widespread optimism among the public and the cannabis industry that federal marijuana reform is possible now that Democrats are in total control of the federal government. Senator Schumer has become increasingly vocal about his support for marijuana legalization, including a recent Instagram live event. He vowed that his legislation would leave cannabis regulation largely up to the states instead of FDA involvement. While this is a great start, any major changes to federal cannabis policy will almost certainly require 60 votes to pass in the Senate. Suggesting the DEMS will need a bunch of Republicans to see wide-spread comprehensive federal marijuana prohibition. Right now, that still seems an unlikely prospect. Still in the cards is less-comprehensive cannabis proposals, like banking legislation/tax reform, will have a better chance of passing.
TCNNF LOOKING TO THE FUTURE
TCNNF is a Hedgeye Best Idea LONG.
TCNNF filed a shelf prospectus (valid for a 25-month period). During that time, Trulieve can issue up to C$750 million of subordinate voting shares, debt securities, warrants, subscription receipts, units, or any combination thereof. "Unless otherwise specified in the prospectus supplement relating to a particular offering of securities, the net proceeds from any sale of any securities may be used by Trulieve for general corporate purposes, including funding ongoing operations and/or working capital requirements, to repay indebtedness outstanding from time to time, for capital projects and potential future acquisitions." Currently, TCNNF operates in 6 states and has 75 dispensaries. Given that the company could double the number of states that it operates in, there are many public and private companies it can buy.
MEDICAL IN WV (TRUL, CCHW)
Trulieve announced yesterday that it had been awarded permits for four dispensaries in West Virginia. Trulieve closed on the acquisition of Solevo Wellness in November. Solevo Wellness had three dispensaries in the Pittsburgh area when it was acquired. Solevo Wellness was also awarded three permits in West Virginia. West Virginia is Trulieve’s sixth state. Trulieve received approval for a grow facility in August and received a processor permit in November. West Virginia approved medical cannabis in 2017. The current regulations limit the industry to 10 grow facilities, 10 processing facilities, and 100 dispensaries. Columbia Care also has cultivation and processing permits as well as five dispensaries. Verano, which has cultivation and processing permits, received seven dispensary licenses. West Virginia has been one of the slower states to enact the legislation after passing it. Patient registration applications are set to open this Wednesday.
