January 27, 2025
Has Wall Street abandoned cannabis?
It’s the title of the article I’m covering today and a valid question asked by its author, Debra Borchardt of Green Market Report.
Copy and paste that prompt into ChatGPT and you’ll get a less refined explanation of why, but the logic-based answer’s nearly identical…
Not entirely.
Borchardt’s piece paints a bleak, yet realistic portrait of an American cannabis industry that has seen a significant decline in Wall Street interest as the once immenent promise of federal legalization has remained unfulfilled.
Borchardt goes on to say the lion’s share of stock analysts and investors have shifted focus to more attractive and profitable sectors, making it harder for cannabis operators to prove their worth.
Equity deals have gone dry and debt refinancing existing’s the new norm, even for non-plant touching ancillary businesses.
She then lists the top Cannabis ETFs that’ve lost their buzz, with some funds losing up to 90% of their value and several being liquidated:
AdvisorShares Poseidon Dynamic Cannabis ETF (PSDN): Quit trading August 2023.
Global X Cannabis ETF (POTX): Liquidated January 2024.|
AXS Cannabis ETF (THCX): Liquidated February 2024.
Subversive Cannabis ETF (LGLZ): Quit trading March 2024.
With just a few active ETFs left in the sector… the strip’s lookin a lot more like Reno than Vegas.
No hate, just perspective…
Borchardt then goes into all the investment firms scaling back on cannabis coverage, with several prominent analysts all out leaving the sector for higher-profile roles elsewhere.
Canaccord Genuity and Alliance Global Partners are still here, but all the other majors dipped out a while ago.
So yeah, Debra said the party’s over.
At least she ended the piece with a small asterisk-attached glimmer of hope…
“Do over? Of course, Wall Street is always happy to make a buck and if full legalization or at least rescheduling occurs, there is no doubt the investment firms will return.”
Seeing things from a gambler’s perspective, the energy HAS left the craps table.
Sure, it was poppin just a few hours ago, but now?
The Chads all bounced.
Way fewer active rollers.
The screams and cheers all gone silent.
The bets are much lighter.
Shooter after shooter’s sevening out.
And now, with Biden and Harris gone, we got a new dealer…
You still got a few bucks left, so it’s three choices:
Hit the strip club, take your ass upstairs to the room, or put it all on one last roll…
Choose wisely.
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