MedMen (MMNFF) (MMEN) closed 1.9% higher on Thursday. On August 22, a Marijuana Moment article stated that MedMen wants to make marijuana legal in Florida. The company launched a 2020 ballot initiative called “Make it Legal Florida.”
MedMen’s “Make it legal Florida” campaign
MedMen registered a political committee earlier in August. Nick Hansen, MedMen’s director of government affairs in the southeastern US, chaired the committee. The committee started a ballot initiative called “Make it Legal Florida.” The intention is to “legalize the safe, adult use of marijuana.” Hansen mentioned that Florida voters are eager to support the initiative.
The proposition also ensures that cannabis products are “clearly labeled and in childproof packaging.” Currently, the Florida Division of Elections is reviewing the petition. The “Make it Legal Florida” campaign will compete against a campaign started by Sensible Florida. Two weeks ago, Marijuana Moment reported that MedMen supports starting a ballot measure to legalize marijuana in Arizona in 2020.
MedMen’s fourth-quarter results
MedMen reported its unaudited first-quarter results on August 13. Notably, the company’s revenues of $42 million rose 104.3% year-over-year. The stock has gained 3.4% in August. However, MedMen has lost 25.5% YTD (year-to-date). MedMen already has licenses to open 35 retail stores in Florida. The company already secured 20 leases in the state. MedMen plans to open 11 more stores in the second half of 2019.
Canopy Growth’s (CGC) (WEED) results weren’t impressive for the first quarter of 2020. Weakness in the cannabis industry’s fundamentals impacts some major players’ performance. Canopy Growth’s huge losses in the quarter drove the stock down. The stock has fallen 23.0% in August and 6.4% YTD.
However, Canopy Growth fell to its lowest point on Monday. To learn more, read Canopy Growth Earnings Impacted the Cannabis Sector and Canopy Growth: Analysts’ Views after Its Earnings.
In contrast, Tilray (TLRY) beat analysts’ second-quarter revenue estimates. Legalization in the Canadian adult-use market and the Manitoba Harvest acquisition drove Tilray’s revenues. The stock has fallen 28.9% in August and 58.8% YTD.
Marijuana legalization in the US
MedMen didn’t share any of the Florida campaign’s funding details. However, the company wants to legalize marijuana in the state. The 2020 election is getting closer. Notably, many candidates support cannabis legalization. Andrew Yang, Joe Biden, Bernie Sanders, and Beto O’Rourke support cannabis legalization.
President Trump hasn’t shared his views. However, he might discuss the topic soon. Read President Trump: Is Marijuana Legalization a Key Weapon? to learn more.
Currently, marijuana is a Schedule 1 drug under the Controlled Substance Act in the US. However, marijuana is legal for recreational use in ten states. Meanwhile, cannabis is legal for medical use in 33 states.
Peers in the cannabis industry
The cannabis sector has faced some ups and downs this year. Regulatory scandals and disappointing earnings results impacted the sector. Also, FDA regulations and FBI investigations drove cannabis stocks.
CannTrust (CTST) got involved in the Health Canada regulatory scandals in July. The company’s troubles seem to be never-ending. CannTrust has fallen 17.8% in August and 61.4% YTD.
On Thursday, Canopy Growth closed 5.4% lower, while Tilray fell 10.2%. CannTrust rose 3.7%. Aurora Cannabis, Cronos Group, HEXO, and Aphria fell 0.85%, 3.5%, 3.6%, and 1.06%, respectively.