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 expectations (based upon the read through of state reports); minimal sequential growth, but improvement from Q1 vs Q4:21. READ MORE

Financial Reporting

• Verano reported that all of its ’21 financials (including its audited YE ) and its Q1:22 cannot be relied upon and will be restated. Jushi as well, advised that it will revise its Q1:22 because of a material misstatement. We have raised concerns in the past that in general, because of federal illegality, the industry is disadvantaged in its ability to attract accounting/finance personnel with the depth of experience that is commensurate with other industries.  These recent announcements validate these concerns but, as the industry continues to evolve, it stands to reason that a deeper, more experienced talent pool is forthcoming.

Interstate Commerce

• California and New Jersey have put in motion legislation allowing interstate commerce. In our view, this could be a game changer for the yet to be implemented New York recreational use market because if west coast product becomes available in New Jersey, it could cannibalize sales in the tri state area (better quality at more affordable price).  We will feature the discussion on interstate commerce in our inaugural GreenWave Buzz podcast, expected for release next week.

SAFE Act

• Recent comments from Senator Jeff Merkley (D-OR) suggest that passage of a revised SAFE Act is possible in this year’s lame duck session. There have been numerous false hopes, but given apparent compromises, this time it may actually pass and as such, there could be a surge in stock performance going into Q4.

Upcoming Conferences

Benzinga Cannabis Capital Conference September 13^th-14^th Chicago, IL.

GreenWave Advisors finalist for “Best Investment Research”

SALT NYC – Jacob Javitz Center, NYC (Use discount code GREENWAVE).