| Without question, the US cannabis industry is in trouble, at least if you judge from the continuing closure of cultivation facilities and dispensaries and stock prices of the companies in our portfolio purchased in January 2022. At that time, StockWatchIndex (SWI) invested in a portfolio of what we believed to be the most promising companies in the cannabis industry and began monitoring their share prices, return on Investment, and capitalization. In anticipation of Federal legalization and now rescheduling, Most analysts (including us) expected a steady expansion of legal operations and improved financial performance reflected in increasing share prices. It has been painful, to say the least. But, we have not sold and are not going to. The Wheels of Government turn Slowly We believe that Federal Legalization and Rescheduling might not be the incredible Boost expected The Biden Administration announced plans in May to move cannabis to Schedule III, which would move cannabis to a less-restricted level federally. The DEA has scheduled a December 2 hearing for expert testimony. After that, the typical government obstacle course of required approvals, objections, and appeals that end in court decisions begins. Rescheduling Imminent? If cannabis were rescheduled under the federal Controlled Substances Act, legal marijuana businesses in California would see a reduction in federal tax burdens. Currently, licensed cannabis businesses are locked out of many traditional banking services. Rescheduling will increase financial transparency and allow businesses to deduct expenses such as payroll and rent from their federal corporate income taxes. The move to a less restrictive schedule will grant cannabis businesses greater access to financial services, potentially attracting new investments and further increasing share prices. |
| In January 2022, StockWatchIndex (SWI) invested in a portfolio of what we believed to be the fourteen (14) most promising companies in the Cannabis industry and began monitoring their share prices, return on Investment, and capitalization. |
| PORTFOLIO VALUE INCREASED BY 74% While a record number of cannabis operations, from cultivators to retailers, closed their doors since 2022, and stocks took the deepest dive ever in January 2023, there seems to be a dim light at the end of the tunnel now. Stock prices and market caps began to stabilize (albeit at a very low level) and began a slow upward climb in September 2023. As of September 30, 2024, values in our monitored portfolio increased by 74% from June 2023.  |
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| There may be Light at the end of the Tunnel Support for legalizing cannabis hit a record 70% The US cannabis industry is expected to reach almost $40 billion in 2024 There are 440,445 full-time equivalent jobs supported by legal cannabis Cannabis will add $115.2 billion to the economy in 2024 Support for legalizing cannabis hit a record 70%. |
| More than half of the States in the US have legalized the recreational use of Marijuana. According to data from the Census Bureau and other outside sources, more than half of Americans (54%) live in a state where both recreational and medical Marijuana are legal, and 74% live in a state where it’s legal either for both purposes or medical use only. |
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