You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We no longer send these by email as we did in the past, but we post this and all of the newsletters on our website here.

Friends,

This morning, Organigram (NASDAQ: OGI) (TSX: OGI) announced an expansion of its efforts in the U.S. by introducing a new brand of hemp-derived THC products, extending on its entry into the market with beverages that it made recently. The gummy products will be available for sale in 23 states through direct-sale initially, with the company expanding to the retail channel by the end of 2025.

Of course, other Canadian LPs are in the THC beverage market like Organigram, including Canopy Growth (NASDAQ: CGC) (TSX: WEED), Tilray Brands (NASDAQ: TLRY) (TSX: TLRY) and Village Farms (NASDAQ: VFF). Cronos Group (NASDAQ: CRON) (TSX: CRON) exited the market in 2023. None break out the exposure by revenue or profits yet.

Most of the MSOs are not in the market yet and view it as a competitive threat. The three largest MSOs by revenue, though, have made entries into the hemp market. Curaleaf (OTC: CURLF) (TSX: CURA) converted a Florida dispensary to a hemp products store, Trulieve (OTC: TCNNF) (CSE: TRUL)  has created new products sold in its stores and directly, and Green Thumb Industries (OTC: GTBIF) (CSE: GTII) works with and controls a company to create THC beverages.

I am in favor of the state-regulated cannabis industry integrating with the hemp industry. In August of 2023, I discussed the threat of hemp as well as opportunity for the cannabis industry, and no MSOs were yet involved. There is not a lot of adoption yet by other MSOs, but it is nice to see the Canadian LPs, with their NASDAQ listings, enter the space. Maybe one will provide a breakout of the revenue.

Many states are pushing back against hemp (like Ohio this week), and there could be a federal move to regulate the products or ban them. I think that all cannabis products that are similar should be regulated by the same regulator and that they should be regulated. Will the FDA finally step up? Will states bring hemp into their cannabis regulatory agencies? These are important issues that investors should watch closely.

Sincerely,

Alan

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Exclusive article by Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email