Cannabis

Highlights

North American cannabis stocks rallied late last week on news that Senate Majority Leader Chuck Schumer encouraged voters to sign a petition supporting the SAFER Banking Act

The new email highlighted a step up in the push for legislation and reiterated his support for comprehensive federal cannabis legislation

The SAFER Banking Act aims to normalise financial transactions for cannabis businesses in the US and potentially stimulate significant industry growth

As one of the only ASX-listed companies with North American cannabis operations, Melodiol could benefit from positive changes in regulation

Melodiol’s wholly-owned subsidiary, Mernova Medicinal Inc. has an established product suite of dried cannabis flower and pre-rolled joints which are already sold in all major Canadian provinces

Any change in regulations that allowed Melodiol to participate in the US cannabis market would potentially allow Melodiol to leverage best practices from Mernova

Melodiol generated group revenue from all operations of $21.6m in FY23 up 148% on FY22 ($8.7m)

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Melodiol Managing Director, Mr Will Lay said: “The US is the largest cannabis market in the world and we continue to monitor potential changes in regulation very closely.

“The company applauds the recent efforts of Mr Schumer, which highlight another step forward in delivering legislation which could unlock sweeping changes for the industry and invigorate significant growth across the industry.

“As the potential for regulatory changes looms, we have continued to develop best practices at our 100%-owned recreational cannabis operation, which already generates significant revenue for the company.