Good morning,
Tomorrow, 4/20, is basically a national holiday for cannabis enthusiasts. And this year there’s even more to celebrate, as 38 states have some form of legal cannabis, and the majority of Americans support legalization, regardless of political party. Plus, the DEA is reviewing an HHS recommendation to reclassify cannabis, which is currently in the same category as heroin.
Still, marijuana remains illegal federally, and national legalization could take some time. That’s led to major hurdles for legal cannabis companies, like not being able to sell their products across state lines. A budding hemp market has sprung up as a result (more on that below).
Nonetheless, leaders in the industry are transforming cannabis from a criminal enterprise into a legitimate one. In our third-annual Cannabis 42.0 list, Forbes identified 42 people who are blazing that path.
More people want to buy homes, but they’re struggling with high interest rates and rising prices, a new report from the National Association of Realtors found. Sales of existing U.S. homes fell 4.3% in March from the month before, the first month sales have declined since December. The average home price last month was $393,500, up 4.8% from March 2023.
Netflix reported blockbuster financial results in its first-quarter earnings report Thursday, as the streaming king returns to explosive subscriber growth. But some question how long the fruits of its password sharing crackdown will last, as “there are increasingly fewer and fewer households in [the U.S. and Canada] yet to subscribe to the streamer,” warned analyst Michael Nathanson.
DAILY COVER STORY
TOPLINE Marijuana remains illegal federally, but its cannabis cousin, hemp, has exploded into a $28 billion industry with products that can legally get you high. In 2018, the federal government legalized hemp and all its derivatives, isomers and extracts through what’s known as the Farm Bill. And since hemp and marijuana are different varieties of the same plant, they contain the same compounds and hemp can be used to make products of similar potencies, or even stronger, than those found in state-regulated marijuana dispensaries around the country.
Armed with the Farm Bill, companies like Indiana-based 3Chi and its competitors sell these hemp-derived products online, across state lines, at gas stations, convenience stores and other places where marijuana is still outlawed. As a result, hemp is becoming a bigger industry than state-regulated marijuana. In 2022, hemp product sales reached $28 billion while legal marijuana products generated $26 billion in sales during that same period, according to cannabis data firm Whitney Economics.
But that massive hemp market operates in a gray area. Hemp-derived cannabinoids, including delta-9 and delta-8 THC, are legal under the Farm Bill so long as they contain 0.3% THC or less. What is not entirely clear is if hemp products made by converting the non-psychoactive cannabinoid CBD into THC through a chemical process, which is how most intoxicating hemp products on the market are made, including 3Chi’s, makes them illegal controlled substances or not. The DEA says synthetically derived THC is illegal, but their definition of “synthetic” is a bit inconsistent, leaving room for debate.
And the animosity between the hemp and marijuana industries is growing. Cannabis companies and lobbyists are urging lawmakers to outlaw hemp products on the state and federal level, especially since hemp companies are subject to far less onerous regulations. “It is, to an extent, a civil war,” says Justin Journay, founder of 3Chi. But, ironically, some of those same marijuana companies that want to see hemp products removed from the market are also dabbling in them. Massachusetts-based Curaleaf, founded by billionaire Boris Jordan, is selling hemp-derived THC edibles online, shipping products to customers in 24 states, including Texas and Indiana.
WHY IT MATTERS Chris Lindsey, a lawyer and director of state advocacy and public policy at the American Trade Association for Cannabis and Hemp, says that intoxicating hemp products are both legal and illegal at the same time. “In a world without federal enforcement, people are willing to gamble and take it as far as they can,” he says. “The reality is that there are no rules.”
MORE Why Hemp-Derived THC Drinks Are Riding High
O.J. Simpson died from cancer at the age of 76 earlier this month, and when it comes to his estate, it’s complicated. Under Nevada law, expenses get paid, then debts like the civil judgment won by the families of Ron Goldman and Nicole Brown for their murders—before heirs. It’s unclear whether the former football great might have assets elsewhere.
Tech marketing firm Ibotta’s stock rocketed Thursday after its IPO, blowing past its offering price and valuing the company at $3.55 billion, per Reuters. Ibotta, founded in 2011 and backed by Walmart, offers an advertising platform for consumer brands’ promotions and provides cashback opportunities for shoppers.
Richard Palmer of Global Clean Energy used Exxon money to overhaul an aging California oil refinery in order to process the oil-rich seeds of a plant called camelina and make biofuels. But cost projections soared during the pandemic, and, citing project delays, Exxon pulled out of its guaranteed offtake contract in early 2023 and sued Global Clean Energy last July.
Shares of Tesla sank again Thursday following a downgrade from Deutsche Bank analysts criticizing Tesla’s apparent “thesis-changing” shift away from its core electric vehicle business. Shares of Tesla are now down 40% year-to-date, coinciding with a tough start to the year for other electric vehicle stocks as the industry grapples with demand challenges globally.
Verne, a San Francisco startup that’s developing a cheaper, lighter tank and fueling system to help hydrogen semis match the driving range and hauling ability of dirty diesel big rigs, recently notched its first substantial funding from private investors to commercialize the technology. The company, founded by Forbes 30 Under 30 alums, has raised a total of $15.5 million, and if its technology works as tested, heavy-duty hydrogen vehicles could become an attractive option for emission-free trucking.
Twelve jurors were selected this week in former President Donald Trump’s New York hush money trial following a rigorous round of questioning and the dismissal of dozens of prospective jurors, including some due to social media posts. Trump has pleaded not guilty to 34 felony charges for allegedly falsifying documents stemming from hush money payments ahead of the 2016 election.
President Joe Biden and First Lady Jill Biden earned $620,000 before taxes last year, according to their 2023 tax return, a 7% increase from 2022 mostly due to a jump in their interest income. But it didn’t make much of an impact on their net worth: Forbes estimates the Bidens’ fortune still stands at $10 million, the same as in August when the couple’s net worth was last calculated.
The Treasury Department unveiled sanctions Thursday against more than a dozen individuals and two entities involved with Iran’s drone program, in response to the country’s drone attack on Israel last weekend that further escalated tensions in the region. The attack marked the first time Iran had ever struck Israel directly.
MORE: The Israeli military reportedly launched airstrikes targeting Iran early on Friday in response to Tehran’s drone attack. Iranian officials publicly dismissed reports of the strike on state TV.
FACTS AND COMMENTS
Taylor Swift’s new album The Tortured Poets Department is available as of today, and it has the potential to shatter records, many of which she set herself:
1.359 million: The number of copies sold of 1989 (Taylor’s Version) in the album’s first week
Six: The number of times Swift has sold more than 1 million copies of an album in one week
14: The number of No. 1 albums Swift would have on the Billboard 200 with The Tortured Poets Department, which would tie her with Jay-Z for solo artists
STRATEGY AND SUCCESS
Typically, retirement planning focuses on the financial aspects, but it’s also important to plan for your overall wellbeing so you don’t get bored with all your free time. A decade or so before you retire, start thinking about places and activities that spark your interest, look into social groups you want to pursue, and revisit shared interests with a partner.
QUIZ
Weight loss and diabetes may just be the beginning for the burgeoning weight loss drug industry. A late-stage trial found that Zepbound meaningfully improved symptoms of what disorder?
A. Depression
B. Sleep apnea
C. Hypertension
D. Chronic kidney disease
ACROSS THE NEWSROOM
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