Higher Exchanges Water Tower Research

Off the top, the guys discuss Verano's announcement of a share repurchase program. The company authorized the repurchase of up to $50 million of shares and we debate whether this is a good use of capital. Toby is more bullish on the program, while Morgan is more concerned about preserving cash and investing for growth. The Cannabist Company CEO David Hart joins the show to cover their recent restructuring and Florida divestiture news. David explains the rationale behind the Florida decis...

The episode begins with Toby elaborating on a recent X post stating that a large $90b pension plan recently invested >$100m in a leading cannabis-focused fund. This led to a broader discussion about how institutions are approaching investing in cannabis. The conversation evolves into what's taking place in Florida. We recently saw a Fox News poll showing 66% support for legalizing adult-use cannabis. Meanwhile, Governor DeSantis recently came out against legalizing cannabis while simultane...

It's merger mania week--or merger maybenia as Morgan called it--and this week's show is dedicated to the potential partnerships between GTI and Sam Adams and Cansortium and RIV Capital. We tackle GTI and SAM off the top with an overview of the proposed merger and discuss the timing and synergies. We debate the timing and wonder why now as we are just approaching potential federal reform and meaningful TAM expansion if Florida flips adult use. The group also covers potential synergies in ...

With Toby on holiday this week, Morgan and Jesse kick off this week's show by reviewing recent price action and contrasting it with reality. While falling share prices have eroded sentiment, there are positive developments. Ohio is beginning to turn on adult-use stores next month, and we analyze key dates, estimate the potential size of the adult-use market, and dig into MSO exposure in the Buckeye State. With 43 MSO-owned stores that may expand up to 70 in the near term, this is an impo...

Nick Gastevich, known as CannaVestments online, joined us this week. He is one of the most experienced cannabis investors and manages a family office that is active in the space. We discussed cannabis stock’s adverse reaction to the positive momentum on rescheduling and debated time frames for a final ruling. The heart of the conversation centers on first-quarter earnings, and we evaluated top-line growth and EBITDA conversion and analyzed cash flow metrics. The conversation ...

Cresco CEO Charlie Bachtell joined us this week to discuss the proposed rule on Schedule III and the company's recent earnings results. Cresco is active in Washington, and Charlie shared his perspective on Schedule III’s next steps, timing, and impact on Cresco's business. We also dug into Cresco's progress. 2023 was the year of the core, and Charlie highlighted the tough decisions they made to cut costs and rationalize the footprint. He also explained Florida's importance and the effort...