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,
I was getting ready this morning to write this week’s newsletter when the biggest news of the week hit: Valley National Bank, a federal bank that is publicly traded, headed a syndicate that loaned Green Thumb Industries $150 Million as a credit line. GTI plans to use this funding, which has a five-year maturity, and its cash to pay off its debt due in April 2025. As I conveyed to my subscribers at 420 Investor this morning, the best big MSO balance sheet just got better.
Valley National, which is based in New Jersey, operates across six states. The company was founded almost 100 years ago as Passaic Park Trust Company. It has $50 billion in deposits and in loans too. The stock is down a lot from its peak near the end of 2023, and it trades below tangible book value. I don’t follow this company, but I have seen it in action in the cannabis sector in the past and am certainly aware of the company. The most recent 10-Q filed with the SEC did not mention cannabis at all, but the company has been involved since 2021.
GTI called it a “first-of-its kind credit facility for the U.S. cannabis industry.” This is correct. Cannabis banking has been a big challenge. We have discussed SAFE Banking in the past, and now this Act, which has passed the House of Representatives many times, is the SAFER Banking Act. Five months ago, just before the DEA disclosed that it is intending to reschedule cannabis, we said that SAFER Banking would be good and is right, but it may not pass. We said then and still believe that the largest publicly traded companies would not benefit, as they already have banking. Today’s announcement is evidence of this!
I have gotten very bullish on cannabis stocks as they have declined. Last night, the New Cannabis Ventures Global Cannabis Stock Index closed at 8.49, which is up 4.7% year-to-date but down a lot from the peak on April 30th.
Today’s news may not get noticed, as investors don’t have cannabis on their radar now. The big story remains: Rescheduling is on track, and it will wipe out 280E taxation it appears. Again, as I have been saying, this is not yet a done deal. Let’s hope that the DEA is able to do what it plans to do.
New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most important content from this week:
Exclusive
Cannabis Sales Growth Remained Challenged
Florida Medical Patient Growth Slows Again
Michigan Cannabis Sales Rise to a Record $295 Million
Capital Raise
Cannabis Company GTI Borrows From Valley National Bank
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Sincerely,
Alan
