The Senate seems to have reached bipartisan consensus on the SAFE banking act, a invoice that may open the federal banking and monetary system to marijuana companies that function legally in line with their state’s legislation.
The Senate plans to connect this marijuana laws to one of many yr finish “must-pass” payments, such because the NDAA.
Some extra notes:
The SAFE banking act has handed the home 6 instances however has at all times died within the Senate. The latest try final yr was killed by progressives within the Senate who view the SAFE banking act as a simple win for buyers/bankers whereas not doing a lot for these impacted by the struggle on medicine. A deal has been reached to incorporate the HOPE act together with SAFE, which supplies federal funding for states to expunge prior hashish offenses, appeasing the calls for of the progressives.
The NDAA is predicted to be voted on this week, which means we should always see some main headlines concerning this hashish laws as quickly as Monday.
What does this imply for hashish shares?
Except for the information catalyst itself, the SAFE banking act ought to have a fabric influence on the financials of many of those hashish firms. The language of the ultimate model of SAFE remains to be unknown, however the core of the invoice has at all times been to supply secure harbor for monetary establishments to work with hashish firms which can be working legally inside their state. On the naked minimal, it will open the capital lending market to those firms, enabling them to get higher phrases on debt.
This can even present secure harbor for hedge funds or different massive establishments that could be excited about investing within the house however are unable to for compliance causes.
Lastly, the US hashish firms (MSOs) can not presently commerce on the most important US inventory exchanges just like the NYSE and NASDAQ. There’s some backwards and forwards as as to whether SAFE will enable these shares to lastly uplist, on condition that these are monetary depository establishments. Many consider that sure, SAFE will enable these firms to uplist a minimum of on the TSX (Toronoto Inventory Trade) and certain even the NASDAQ/NYSE, and there might even be particular language added to the ultimate invoice to specify this.
I’ve long run positions in $MSOS, $GTBIF, $CRLBF, $TCNNF and $CURLF, in addition to some small quick time period positions in $CGC and $TLRY.
