The GreenWave Buzz

our proprietary analysis and commentary on what’s relevant in the cannabis space 

RE-SCHEDULING CANNABIS: LEANING INTO FREE CASH FLOW AND CAPITAL MARKETS

RE-SCHEDULING CANNABIS: LEANING INTO FREE CASH FLOW AND CAPITAL MARKETS

Key Points The Department of Health and Human Services (HHS) released details of its recommendation to re-schedule cannabis from schedule I to III; Drug Enforcement Agency (DEA) approval is pending but opposition and court proceedings could still delay re-scheduling....

U.S. Cannabis: A Reset Looming

U.S. Cannabis: A Reset Looming

With the progression of individual state regulated markets, entrepreneurs, investors and other industry participants have remained intoxicated by the prospects for federal cannabis reform. These interests have been further inspired by the U.S. Federal Government’s...

WEEDING OUT THE ILLICIT MARKET (UPDATE)

WEEDING OUT THE ILLICIT MARKET (UPDATE)

Arguably, one of the greatest challenges confronting the U.S. cannabis industry is the continued pressure from a thriving illicit market. Consequently, same-store top line increases have generally been insignificant and near- term consensus revenue growth projections...

A Comparative Look at Valuation

A Comparative Look at Valuation

Cannabis stocks have advanced sharply since August 29th when the U.S. Department of Health and Human Services announced its recommendation to remove cannabis from a Schedule 1 narcotic to Schedule III. The precise timing of the Drug Enforcement Agency ruling...

RE-SCHEDULING MARKS A NEW DAY FOR NET OPERATING LOSS (NOL) CARRYFORWARDS

RE-SCHEDULING MARKS A NEW DAY FOR NET OPERATING LOSS (NOL) CARRYFORWARDS

Section 280E of the Internal Revenue Code disallows businesses from deducting otherwise ordinary business expenses from gross income associated with the “trafficking” of Schedule I or II substances, as defined by the Controlled Substances Act. Once moved to Schedule...

Distribution Mayhem In California: Who’s Left Holding the “Bag”?

Distribution Mayhem In California: Who’s Left Holding the “Bag”?

Herbl, one of California’s largest licensed cannabis distributors is in receivership. Last year it served ~1K retailers and accounted for ~18% (~$700M) of the state’s $3.8B retail sales amount. Other licensees could be at or near a similar breaking point. California...

ONE STEP FORWARD ON THE ROAD TO FEDERAL REFORM

ONE STEP FORWARD ON THE ROAD TO FEDERAL REFORM

The announcement last week by the department of Health and Human Services (HHS) that it is now recommending the rescheduling of cannabis from schedule I to III, marks a significant inflection point for federal cannabis reform. The timing of the Drug Enforcement Agency...

The GreenWave Buzz – May 3, 2023

The GreenWave Buzz – May 3, 2023

The long-term prospects for industry growth remain compelling as more states legalize cannabis. Near-term fundamentals are hampered by a thriving illicit market, lack of law enforcement, price compression and added costs associated with prohibition most notably, the...

Terrascend Sets In Motion Up-listing to the Toronto Stock Exchange

Terrascend Sets In Motion Up-listing to the Toronto Stock Exchange

TERRASCEND SETS IN MOTION UP-LISTING TO THE TORONTO STOCK EXCHANGE Last week, Terrascend announced that it filed an application to list its shares on the Toronto Stock Exchange (TSX).  The company indicates that in order to qualify for listing, it will need to...

Recent Headlines, Commentary and Upcoming Catalysts – 9/9/2022

Recent Headlines, Commentary and Upcoming Catalysts – 9/9/2022

Q2 Earnings Season Recap Generally speaking, the larger MSOs continue to execute, while it’s becoming increasingly more challenging for the smaller players to scale and generate cash flows needed to support current operations. Q2 revenues were in line with our...

Q2 Earnings Season Commentary – 9/1/2022

Q2 Earnings Season Commentary – 9/1/2022

Summary Generally speaking, the larger MSOs continue to execute, while its becoming more of a struggle for the smaller players to scale and generate cash flows needed to support current operations. Q2 revenues came in as expected – minimal sequential growth, but...

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