💸 The Tape

The Congressional Cannabis Caucus turned nine years old this year. In Washington terms, that's old enough to have built a legislative record. The question is whether that record amounts to meaningful progress — or a well-intentioned exercise in frustration.

The answer, honestly, is a bit of both.

The Origin Story

The caucus was founded in 2017 during the 115th Congress by a genuinely bipartisan group: Republicans Dana Rohrabacher and Don Young alongside Democrats Earl Blumenauer and Jared Polis. The mission was straightforward — harmonize federal laws that conflicted with the growing number of states legalizing medical and recreational cannabis. At the time, roughly 30 states had some form of legal cannabis. Today, that number exceeds 40. The federal laws remain largely unchanged.

The caucus's current leadership reflects an intentional diversity of perspectives. Democratic co-chairs Dina Titus (NV) and Ilhan Omar (MN) took over in January 2025 from retiring co-chairs Blumenauer and Barbara Lee. On the Republican side, Dave Joyce (OH) and Brian Mast (FL) continue in their co-chair roles. Titus brings banking expertise from representing Nevada, Omar approaches reform through social justice and expungement, Mast — a military veteran who lost both legs in combat in Afghanistan — fights to de-stigmatize cannabis access for veterans, and Joyce pushes to remove marijuana from the federal controlled substances list entirely.

"We're coming at it from all angles," Titus has said. And that's both the caucus's strength and its limitation.

What They've Actually Accomplished

The honest accounting of the Cannabis Caucus's legislative wins is shorter than its members would like.

The most tangible achievement predates the caucus itself: the Rohrabacher-Farr amendment (now Rohrabacher-Blumenauer), first passed in 2014, which prevents the Department of Justice from using federal funds to interfere with state medical cannabis laws. That rider has been renewed annually and remains one of the only durable federal cannabis protections on the books. Caucus members have been instrumental in ensuring its survival through successive appropriations cycles.

The House has twice passed bills to federally legalize marijuana under Democratic majorities, and has advanced cannabis banking legislation seven times. Caucus members were central to shepherding those votes. The MORE Act — which would deschedule cannabis, provide expungement, and create a federal tax framework — currently has 60 cosponsors in the 119th Congress, making it the most widely backed cannabis bill of the session. The STATES 2.0 Act, the Veterans Equal Access Act, and the RESPECT Resolution focused on equity are all caucus-driven efforts.

In December 2025, caucus members introduced the RESPECT Resolution, encouraging state and local governments to adopt policies expanding cannabis business access for communities disproportionately harmed by prohibition.

And just weeks ago, Titus and Omar introduced the Higher Education Marijuana Research Act, aimed at eliminating barriers to academic cannabis research and protecting universities conducting studies on state-regulated products.

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What They Haven't

Here's where the record gets uncomfortable: none of the major legislation the caucus has championed has become law.

The SAFE Banking Act (and its successor, the SAFER Banking Act) passed the House seven times but was never brought to a vote in the Senate. Under Republican House Speaker Mike Johnson, the bill didn't even receive a committee hearing. Cannabis banking reform — the single most broadly supported, least controversial piece of cannabis legislation in Congress — has died repeatedly despite bipartisan backing.

Federal legalization bills have passed the House twice and gone nowhere in the Senate. The Veterans Equal Access Act has been introduced in multiple sessions without reaching the president's desk. Research reform bills have been filed, praised, and forgotten. The caucus has been extraordinarily effective at building coalitions and passing legislation through the House — and extraordinarily ineffective at getting anything through the Senate or signed into law.

The fundamental problem isn't the caucus itself. It's the structural reality that Senate leadership and House Speakers control what reaches the floor, and neither chamber's leadership has prioritized cannabis reform — regardless of the bipartisan support that exists among rank-and-file members.

Recent Commentary: The Frustration Is Getting Louder

This week, during what advocates are calling "Cannabis Week of Unity" on Capitol Hill, the caucus co-chairs delivered their most pointed commentary yet.

Rep. Ilhan Omar declared: "It is about damn time Congress caught up with where the American people are." But she went further than a simple legalization call, arguing that "if we legalize cannabis and simply allow large corporations to make huge profits while the very communities destroyed by the War on Drugs are left behind, then we have failed." She called for full descheduling, record expungement, community reinvestment, and an end to the federal hemp ban — a comprehensive vision that goes well beyond incremental rescheduling.

Rep. Dina Titus echoed the urgency: "States have been way ahead of the federal government the whole time. What we're trying to do here now is bring the federal government up to the level of the states, because dragging behind is just not realistic and just doesn't make any sense — morally, ethically, legally, health-wise, you name it."

On the Republican side, Brian Mast has continued his long-running advocacy for veteran cannabis access through the VA — a cause that carries particular moral authority from a decorated combat veteran. Mast's focus on removing the stigma around medical cannabis use among service members and ensuring VA physicians can openly discuss state-legal cannabis options with patients represents one of the most practically achievable reforms the caucus promotes.

Where This Leaves Things

Nine years in, the Cannabis Caucus has built awareness, introduced dozens of bills, passed legislation through the House multiple times, and created a bipartisan framework that didn't exist before 2017. Those are real contributions to the policy landscape.

But the scorecard on enacted legislation remains essentially blank. Banking reform hasn't passed. Federal legalization hasn't passed. Research reform hasn't passed. Veterans access hasn't passed. The caucus has been a prolific bill factory with a near-zero conversion rate — not because the ideas lack support, but because the institutional gatekeepers in Congress have consistently refused to let the votes happen.

The irony is that the executive branch just accomplished in weeks what the caucus has been unable to achieve in nearly a decade — moving cannabis to Schedule III through administrative action. That shift wasn't driven by legislation. It was driven by a presidential executive order.

The Cannabis Caucus has proven that bipartisan support for reform exists. What it hasn't been able to do is translate that support into law. Until the people who control the congressional calendar decide that cannabis reform deserves floor time, the caucus will continue to be the most effective advocacy group in Congress that can't get a bill to the president's desk.

The frustration, after nine years, is earned.

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$CBWTF ( ▼ 3.33% )  Auxly Crushes Q1 Profits

Auxly Cannabis Group is quietly putting together one of the most impressive financial profiles in Canadian cannabis — and Q1 2026 might be the quarter that forces people to notice.

The consumer packaged goods-focused cannabis company reported net revenue of $39.8 million, up 22% year-over-year, with adjusted EBITDA of $12.3 million — a 65% increase that produced a 31% EBITDA margin. Gross margin on finished cannabis inventory expanded to 55%, up from 48% a year ago. And cash flow from operations before working capital changes doubled to $11.3 million, representing a 92% conversion rate from adjusted EBITDA.

Those aren't just good numbers for cannabis. Those are good numbers for any consumer packaged goods company, period.

The revenue growth was driven by the Back Forty brand's continued market strength, contributions from new innovations including South Point and All-in-One Boosted Vapes, and improved distribution across the Canadian market. The flower segment was particularly strong, benefiting from increased demand and expanded retail presence. Vape pricing compression provided a partial offset, but the overall mix shift toward higher-margin products more than compensated.

The margin expansion story is equally compelling. The 700 basis point improvement in gross margin reflects manufacturing process improvements, higher cultivation yields, efficiency gains at the Auxly Charlottetown facility, and strategic procurement initiatives. When a company grows revenue 22% while expanding gross margins by seven full points, it signals an operating model that scales profitably — not just a business riding volume.

CEO Hugo Alves highlighted the balance sheet strength: Auxly finished Q1 with $42.7 million in cash, total debt of $45 million, and a debt-to-EBITDA ratio of just 0.9x. That's fortress-level leverage for a cannabis company and provides flexibility for the company's $10–$12 million capital investment program at its Leamington facility, the recently announced share buyback of up to 68.9 million shares, and potential opportunistic capital deployment.

Looking ahead, Auxly is actively evaluating international export opportunities, supported by its partnership with Imperial Brands and scalable production infrastructure. The company plans to invest in export capabilities through 2026, though Alves emphasized a "purposefully rigorous" approach to ensure international activities are accretive and don't compromise domestic momentum.

Net income was $3.5 million — the kind of bottom-line profitability that remains rare in Canadian cannabis.

In an industry still searching for operators that can grow profitably, Auxly is delivering 22% revenue growth, 55% gross margins, 31% EBITDA margins, and real cash flow. The quiet ones are sometimes the most dangerous.

$AVCNF Avicanna’s Science + Sales = Profits

Avicanna is building something most cannabis companies talk about but few actually execute: a pharmaceutical-grade cannabinoid platform backed by real clinical data, real revenue growth, and real peer-reviewed publications.

The Canadian biopharmaceutical company reported record Q1 2026 revenue of $6.68 million, up 6% year-over-year, alongside record gross profit of $3.84 million at a 58% gross margin — the highest in the company's history. The growth was driven by an 11% increase in revenue from MyMedi.ca, Avicanna's medical cannabis platform, and a 24% increase in Canadian product sales.

The numbers are modest by MSO standards, but Avicanna isn't competing on that playing field. This is a company positioning at the intersection of cannabis and pharmaceutical development — and the Q1 results show the commercial side catching up to the scientific ambition.

MyMedi.ca delivered its fourth consecutive quarter of growth, posting record unit sales of 220,246 units — up from 195,705 a year ago. Avicanna-branded product sales through the platform jumped 42%, while total proprietary product unit sales across all Canadian channels grew 24% to 45,419 units. The company ended the quarter with 52 commercial SKUs and 170 listings across medical and adult-use channels, representing 24% and 26% growth respectively.

On the clinical side, Avicanna advanced on multiple fronts. A real-world evidence study conducted through MyMedi.ca and led by Dr. Hance Clarke at the University Health Network was published in the peer-reviewed Canadian Journal of Pain, demonstrating statistically significant improvements in pain, anxiety, depression, and quality of life over 24 weeks. The company also initiated a Phase I dose-finding clinical trial with the University of Calgary evaluating oral THC for anxiety and stress using Avicanna's proprietary self-emulsifying drug delivery system.

Internationally, subsidiary Santa Marta Golden Hemp completed its first commercial export to Australia — the 21st market for SMGH and 24th for Avicanna products overall — validating the platform's ability to produce standardized, organic-certified flower at commercial scale.

CEO Aras Azadian framed the quarter as evidence of "increasing operational leverage" and "growing alignment between our commercial execution and scientific strategy."

With U.S. Schedule III rescheduling now in effect, Avicanna is evaluating pathways to leverage its scientific platform, proprietary formulations, and clinical data for potential U.S. market entry — focused on FDA-aligned pharmaceutical development and evidence-driven medical cannabis models.

Small company. Big thesis. And the data is starting to back it up.

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Cannabis Earnings Keep Rolling As Reform Momentum Builds | TTB Presented by Flowhub

• Rubicon Organics: CEO Margaret Brodie discusses Q1 revenue of $13.7 million (up 11% YoY) and why management is accepting near-term margin pressure from the Cascadia facility ramp to position brands like Simply Bare, 1964 Supply Co., and Wildflower for a stronger second half of 2026.

• Jushi Holdings: CEO Jim Cacioppo breaks down the company's $66.4 million quarter, improving margins, wholesale momentum, and a major refinancing, plus his outlook on Virginia adult-use, Ohio, Pennsylvania, and why tightening hemp enforcement could be a significant catalyst for licensed operators.

• The Bigger Picture: Earnings season is revealing a clear split — some companies are betting on operational execution and premium brands, while others are positioning for regulatory upside and market expansion — and both strategies are starting to show which operators are built for what comes next.

💸 The Tape

Glass House Brands is in the middle of the most uncomfortable kind of growth story — the kind where you're investing heavily in scale while the current market punishes you for it. The Q1 2026 results are objectively rough. But the thesis behind them hasn't changed, and management is betting that the payoff is coming.

The California-focused cannabis producer reported Q1 revenue of $40.5 million, down 9.6% from $44.8 million in Q1 2025 but up 4.1% sequentially from Q4's $38.9 million — and ahead of the company's own $39 million guidance. The top line beat expectations, which is about where the good news ends on the income statement. Gross margin compressed to 25%, down dramatically from 45% a year ago and 34% last quarter. Adjusted EBITDA was negative $4.2 million, compared to positive $4.4 million in Q1 2025. Operating cash flow was negative $11.8 million.

Those numbers hurt. But they need context.

The Cost Transition

The margin compression is driven by a specific and transitory dynamic: cost of production per equivalent dry pound spiked to $175, up from $108 a year ago and $129 in Q4. That increase reflects the company's aggressive buildout of Greenhouse 2, which was accelerated and completed during the quarter to prepare for rescheduling-driven opportunities. When you bring significant new cultivation capacity online, the costs hit before the revenue does — and Q1 caught Glass House in that awkward middle period.

Management isn't hiding from it. CEO Kyle Kazan acknowledged the results reflect "a build-up of cultivation scale and transitory inflated cost of production" and committed to making changes to "ensure our future performance returns to the standards that we demand of ourselves."

The company reiterated its full-year guidance: approximately one million pounds of cannabis biomass production (a company record), an average selling price in the mid-$180s per pound, and a path to achieving its $95 per pound production cost target on a quarterly basis in the second half of 2026. If Glass House hits that cost target while selling at $185, the margin math changes dramatically from where it sits today.

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Production Held Strong

Despite the cost issues, the production engine performed. Biomass output was 151,531 pounds, ahead of the guided 138,000 pounds and roughly in line with the prior year's 152,568 pounds. The company can grow cannabis at enormous scale — the challenge right now is doing it at the cost profile that makes the business model work.

Average selling price came in at $171 per pound, above the guided $167 but well below last year's $193. California's wholesale pricing environment remains punishing, and Glass House continues to operate in what Kazan described as "challenged California pricing conditions." The company's long-term bet has always been that its greenhouse-based model — which avoids the massive energy costs of indoor cultivation and doesn't rely on third-party water supply — provides structural cost advantages that will separate it from peers over time. Q1 tested that thesis more than most quarters.

Segment Breakdown

The wholesale biomass segment generated $24 million in revenue, accounting for 59% of the total. Retail contributed $11.9 million with a 50% gross margin — up from 47% in Q4 — providing a higher-margin counterbalance to the wholesale challenges. Wholesale CPG added $4.6 million, up 7% sequentially.

The retail segment's margin improvement is notable and suggests that Glass House's dispensary operations are performing well independently of the wholesale headwinds. As the company's California retail joint venture with Vireo Growth comes together — combining 23 dispensaries and the Eaze delivery platform — the retail contribution should become an increasingly important piece of the revenue and margin mix.

The Rescheduling Opportunity

Kazan framed the Schedule III rescheduling of medical cannabis as "a landmark event" with vast implications for Glass House. The company has already submitted DEA registration applications for its medical operations, permitting it to immediately operate under the new Schedule III framework.

But the bigger opportunity Kazan highlighted goes beyond 280E tax relief. He pointed to the potential for interstate commerce and European export — two developments that would "meaningfully increase our addressable market size and unlock greater profit and cash flow generation driven by more favorable pricing dynamics."

That's the strategic logic that underpins Glass House's entire expansion push. If cannabis can eventually move across state lines or internationally, a company producing one million pounds annually at sub-$100 cost per pound from California greenhouses would have an extraordinary competitive position. The current California pricing environment — where wholesale prices are among the lowest in the country — becomes an advantage rather than a constraint when you can sell into markets with significantly higher price points.

Strategic Moves

Glass House was active beyond the financial results. The company announced a collaboration with UC Berkeley on state-funded cannabis crop yield research, appointed Alison Payne (Heineken USA's Chief Marketing Officer) to its board, established a Product Expansion Committee to support new product and business development, and announced a warrant redemption notice — all signals of a company building infrastructure for a much larger future.

The board-level additions are particularly telling. Bringing in a Heineken CMO suggests Glass House is thinking seriously about consumer branding and product diversification beyond bulk biomass — a necessary evolution if the company wants to capture value further up the supply chain.

The Bottom Line

Glass House's Q1 2026 is the kind of quarter that tests investor patience. Negative EBITDA, negative cash flow, compressed margins, declining year-over-year revenue — none of those headlines inspire confidence in isolation.

But the underlying thesis remains intact. Production volume is on track. The Greenhouse 2 expansion is complete. Cost per pound should decline materially through the year. The retail joint venture with Vireo adds scale and delivery infrastructure. DEA registration is filed. And the $95 cost target — which would produce industry-leading margins at current selling prices — remains achievable in the second half.

Glass House is building for a future where cannabis crosses borders — state and international. That future isn't here yet, and Q1's results reflect the cost of preparing for it. The question is whether the company can execute the cost improvements it's promising while California's market remains unforgiving.

Kazan has always bet that scale and cost advantage would eventually win. This is the quarter where that bet gets expensive. The next two quarters will determine whether it pays off.

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$MRMD ( ▼ 18.28% ) Reports Q1

MariMed isn't trying to be the biggest cannabis company in the room. It's trying to be the most efficient — and Q1 2026 suggests the strategy is working.

The multi-state operator reported Q1 revenue of $39.5 million, up 4.2% year-over-year from $37.9 million — a modest top-line improvement that masks more meaningful progress underneath. Non-GAAP adjusted EBITDA grew 44% to $3.6 million, with margins expanding from 7% to 9%. GAAP net loss narrowed to $3.8 million from $5.5 million, while non-GAAP net loss improved to $3.2 million from $3.9 million. The direction is clear: MariMed is generating more profit from each dollar of revenue, quarter after quarter.

The Brand Strategy

CEO Jon Levine framed the results around the company's "Expand the Brand" strategy — a deliberate effort to push MariMed's top-selling brands into broader distribution across both existing and new markets. That approach is showing up in the numbers, with growth driven by expanded wholesale distribution and retail performance rather than aggressive footprint expansion.

Levine highlighted that MariMed's products "maintained or grew their market-leading positions in the most popular categories across our wholesale markets" — a statement backed by what the company describes as operational excellence across innovation, manufacturing, and sell-through. In an industry where many operators are fighting pricing compression with volume, MariMed is leaning into brand strength and distribution discipline to drive incremental growth.

Gross margins held relatively steady at 39% GAAP and 40% non-GAAP, down just one percentage point year-over-year despite the pricing pressures affecting virtually every cannabis market in the country. Maintaining margins near 40% while growing revenue speaks to the quality of MariMed's cultivation and manufacturing operations.

Balance Sheet Cleanup

MariMed also took a meaningful step to strengthen its financial position during the quarter. In March, the company announced a Restructuring and Exchange Agreement with holders of its $14.725 million Series B Convertible Preferred Stock, eliminating a mandatory conversion date obligation that had been looming on February 26, 2026. The restructured arrangement replaces the near-term obligation with a combination of long-dated instruments, extending the weighted average maturity to 4.6 years and eliminating near-term refinancing risk.

That's the kind of quiet balance sheet management that doesn't generate headlines but materially improves a company's financial flexibility — particularly heading into a period where capital allocation decisions could be critical.

The Rescheduling Context

Levine positioned MariMed as "well-positioned to capitalize on this transformative period" following Schedule III rescheduling of medical cannabis. For a company focused on profitability improvement and disciplined execution, the elimination of 280E tax treatment on medical operations represents a direct boost to after-tax economics — additional margin expansion without requiring additional investment.

The Bottom Line

MariMed's Q1 won't make anyone's highlight reel for explosive growth. But 4% revenue growth, 44% EBITDA growth, narrowing losses, and a cleaned-up balance sheet tell the story of a company methodically building a more profitable business. In an industry that has burned billions chasing scale, MariMed's bet on brands, efficiency, and discipline is looking increasingly smart.

$TCNNF ( ▼ 9.14% ) Is Coming Back To The U.S.

The largest U.S. cannabis operator announced it will seek shareholder approval to redomicile from British Columbia, Canada to Delaware — a move that aligns the company's corporate structure with the reality that its entire business operates in the United States. A special shareholder meeting is scheduled for August 5, 2026, with a record date of June 8.

The move, structured as a plan of arrangement involving a continuance out of BC and concurrent domestication to Delaware, reflects a broader trend among U.S. cannabis companies that originally incorporated in Canada to access Canadian stock exchanges — the only major public markets that would list them. Now, with federal rescheduling advancing and the prospect of eventual U.S. exchange uplisting becoming more tangible, the Canadian corporate wrapper is increasingly more burden than benefit.

Delaware offers a well-established, business-friendly corporate legal framework that virtually every major U.S. public company utilizes — predictable case law, flexible governance structures, and a specialized Court of Chancery that handles corporate disputes with expertise unmatched by other jurisdictions. For a company of Trulieve's scale — 240 dispensaries, $287 million in quarterly revenue, over four million square feet of cultivation capacity — operating under Delaware corporate law is a natural fit.

Trulieve emphasized that the domestication is not expected to cause any material change in business or operations. The move is structural, not operational.

Completion requires Supreme Court of British Columbia approval, shareholder approval, authorization from BC's registrar, and other customary consents. The board retains discretion to abandon the arrangement even after shareholder approval.

Trulieve joins Jushi and other MSOs in signaling that the era of U.S. cannabis companies wearing Canadian corporate clothing is drawing to a close.

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• Cannabis Sector Stabilization: Scott Grossman of Vindico Capital breaks down earnings season and whether improving investor sentiment has real substance behind it.

• MSO Deep Dive: The conversation covers Green Thumb Industries, Vireo Growth, and AYR Wellness, alongside broader themes of consolidation, distressed assets, private MSOs, Texas licensing, and whether cannabis eventually earns CPG-style valuations.

• Institutional Capital: Grossman weighs in on whether the industry could see another major institutional moment reminiscent of the Constellation Brands / Canopy Growth era.

• New Weekly Feature — Vantage Standard: The podcast launches a recurring segment exploring cannabinoids in regulated healthcare infrastructure, covering pharmaceutical-grade manufacturing, Medicare models, physician oversight, and how the industry intersects with formal U.S. healthcare systems.

• CBD Pilot Breakdown: Rusty Kuchta (Vantage CEO) and Dr. Paul Shields walk through how the federal CBD pilot program could evolve from early-stage framework into a full-scale healthcare model, with a step-by-step look at the process ahead.

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Jushi Holdings has spent the last year doing the kind of unglamorous work that doesn't generate headlines but builds real businesses: fixing operations, improving product quality, and cleaning up the balance sheet. The Q1 2026 results suggest that work is starting to show up in the numbers.

The vertically integrated multi-state operator reported Q1 2026 revenue of $66.4 million, up 4% year-over-year, with gross profit margin expanding 460 basis points to 45% — the kind of margin improvement that signals genuine operational progress rather than accounting noise. Adjusted EBITDA came in at $11.4 million at a 17.2% margin, and the company generated $8.6 million in operating cash flow during the quarter.

For a company that has navigated significant financial complexity over the past two years, the trajectory is pointing in the right direction.

Margin Expansion Is the Story

The headline isn't the top line — 4% revenue growth is modest by any standard. The real story is what's happening beneath it. A 460 basis point year-over-year improvement in gross margin — from roughly 40.4% to 45% — reflects tangible improvements across Jushi's grower-processor network, where operational efficiencies, increased production volumes, and higher product quality are translating directly into better economics.

Gross profit of $29.9 million on $66.4 million in revenue means Jushi is keeping nearly half of every dollar that comes through the door before operating expenses. In a cannabis industry where margin compression has been the dominant narrative, expanding margins by nearly five full percentage points while growing revenue is a notable achievement.

CEO Jim Cacioppo attributed the improvement to "operational efficiencies and increased production volumes" across the company's cultivation and processing facilities — the kind of blocking-and-tackling work that doesn't make for exciting press releases but compounds over time.

Revenue Drivers

The 4% revenue growth was driven by a combination of wholesale expansion and retail footprint additions. Wholesale revenue benefited from increased distribution, higher production capacity, and strong demand in key markets — particularly Massachusetts and Ohio. On the retail side, contributions from the company's Ohio expansion (including a second Beyond Hello™ location in the Cincinnati metro area, bringing the state total to seven) and strong performance across Virginia provided incremental revenue.

Jushi-branded products continued to gain share within the company's own retail network, representing 58% of retail revenue across Jushi's five vertical markets, up from 56% in Q1 2025. That mix shift matters — selling your own branded products through your own dispensaries captures margin at both the manufacturing and retail level, creating the kind of vertical integration economics that justify the complexity of operating across the entire supply chain.

The company also introduced 567 new unique SKUs during the quarter — spanning flower, pre-rolls, vapes, concentrates, and edibles — reflecting an active product development pipeline designed to meet diverse patient and consumer preferences across multiple states.

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The Refinancing

Jushi completed a significant balance sheet restructuring during the quarter, refinancing its 2024 senior secured term loan and second lien notes — which carried a combined principal balance of approximately $132.3 million — through a new $160 million secured term loan at 12.5% interest, due in 2029. The new facility was issued at a 4% original issue discount.

Both Cacioppo (through an affiliated entity) and significant equity holder Denis Arsenault participated in the refinancing — a signal of insider confidence that carries weight when a company is asking lenders to commit $160 million.

Proceeds were used to fully repay the prior debt facilities, cover associated fees and expenses, with excess proceeds retained for general corporate purposes. The result: extended maturities, improved liquidity, and a cleaner capital structure heading into what could be a transformational period for U.S. cannabis.

The Rescheduling Tailwind

The Schedule III rescheduling of state-licensed medical cannabis carries particular significance for Jushi. Medical sales represented approximately 60% of the company's total revenue in 2025 — meaning a substantial majority of Jushi's business immediately qualifies for 280E tax relief.

The elimination of 280E on medical operations should produce a measurable improvement in Jushi's after-tax profitability and cash flow — dollars that can be redirected toward debt service, facility investments, or further operational optimization. For a company that has been managing a meaningful debt load, every freed-up dollar matters.

The broader hearing on general cannabis rescheduling begins June 29 and is expected to conclude by July 15. If recreational cannabis also moves to Schedule III, the remaining 40% of Jushi's revenue would qualify for 280E relief as well — extending the benefit across the entire business.

Virginia: The Wildcard

Jushi operates a strong retail footprint in Virginia, which makes the state's ongoing legalization drama directly relevant to the company's growth trajectory. The Virginia General Assembly passed adult-use sales legislation, the governor proposed amendments, lawmakers rejected those amendments, and the original bill was returned to Governor Spanberger, who has until May 23 to sign, veto, or allow it to become law without her signature.

If Virginia launches adult-use sales — potentially as early as January 2027 under the original bill — Jushi's existing dispensary network would gain access to a dramatically larger consumer base. Cacioppo noted that the transition "is expected to expand our customer base and increase demand," while appropriately caveating that "the timing and extent of any revenue impact remain uncertain."

The company also announced its intention to seek shareholder approval to redomicile its parent entity from British Columbia to Nevada — aligning its corporate structure with its U.S. operations and potentially positioning for future opportunities like major exchange uplisting as the regulatory environment continues to evolve.

The Bottom Line

Jushi's Q1 2026 isn't a quarter that announces itself with explosive growth numbers. It's a quarter that demonstrates operational improvement, financial discipline, and strategic positioning — the kind of foundational work that compounds into meaningful results over time.

45% gross margins. 460 basis points of year-over-year expansion. Positive operating cash flow. A refinanced balance sheet. 60% medical revenue mix positioned for immediate 280E relief. And a Virginia market that could unlock significant upside within the next year.

Cacioppo has been saying for quarters that the focus is on "operational excellence and disciplined execution." The Q1 numbers suggest that's not just a talking point — it's starting to become the financial reality.

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$ATAI ( ▼ 0.62% ) Reports Q1

The clinical-stage biotech reported Q1 2026 results that are less about financial performance (it's a pre-revenue drug development company) and more about pipeline execution and runway. On both fronts, the update was reassuring. The company holds $209.9 million in cash and short-term securities, which it expects to fund operations into 2029 — critically, through anticipated Phase 3 topline readouts for its lead candidate. In drug development, having enough cash to reach your most important data milestone without needing to raise is everything.

BPL-003: The Main Event

The company's flagship program — BPL-003 (mebufotenin benzoate), an intranasal spray for treatment-resistant depression (TRD) — remains on track to initiate its Phase 3 ReConnection program this quarter. The pivotal program consists of two studies: ReConnection-1 (~350 patients) and ReConnection-2 (~230 patients), with the primary endpoint measuring change from baseline in MADRS total score at Week 4. Both studies include 52-week open-label extensions allowing retreatment at 8- or 12-week intervals.

BPL-003 holds FDA Breakthrough Therapy Designation and delivered compelling Phase 2a results showing a 66.7% response rate by Day 2 from a single intranasal dose — data that was recently published in CNS Drugs. Phase 3 topline readouts are anticipated in early 2029.

The Rest of the Pipeline

VLS-01, a DMT buccal film also targeting TRD, continues progressing through its Phase 2 Elumina study, with topline results expected in Q4 2026. Meanwhile, EMP-01 — an oral R-MDMA formulation for Social Anxiety Disorder — delivered Phase 2a data showing consistent improvements across clinician-rated, patient-reported, and real-world behavioral outcomes.

Three clinical programs, three distinct mechanisms, all advancing simultaneously. It's the kind of pipeline diversification that de-risks the overall platform even if any single program stumbles.

The Numbers

R&D spending increased to $17.4 million from $11.3 million year-over-year, reflecting the ramp toward Phase 3 and the integration of Beckley Psytech following the November 2025 combination. G&A rose to $14.4 million. Net loss was $29.8 million — expected for a company investing aggressively in late-stage clinical development.

AtaiBeckley was also added to the S&P Biotechnology Select Industry Index and CRSP U.S. indices during the quarter — expanding its visibility to institutional and passive investors at exactly the right moment in its clinical timeline.

$VREOF ( ▼ 9.24% ) Performed

Vireo Growth isn't just growing — it's assembling an empire at a pace the cannabis industry hasn't seen in years.

The company reported Q1 2026 GAAP revenue of $106.2 million, up 333.5% year-over-year, driven by a string of closed acquisitions that has transformed Vireo from a mid-tier operator into the 4th largest cannabis company in the U.S. on a pro forma basis. Adjusted EBITDA hit $32.7 million at a 30.8% margin — nearly 400% higher than the prior year — while gross profit margin expanded to 55.8%.

The M&A activity reads like a highlight reel. During Q1, Vireo closed its acquisition of Schwazze, adding 45 dispensaries and two manufacturing facilities across Colorado and New Mexico, and activated a management services agreement tied to its pending PharmaCann asset acquisition. Post-quarter, the company completed its merger with Eaze (California delivery and dispensaries), closed the acquisition of Hawthorne Gardening Company from Scotts Miracle-Gro, announced a California retail joint venture with Glass House Brands, and entered into a definitive agreement to acquire FLUENT Corp. in an all-stock deal that would add approximately 74 dispensaries in Florida.

On a pro forma basis — giving effect to all acquisitions as if completed January 1, 2025 — Vireo generated $210.2 million in revenue (up 5% year-over-year) and pro forma adjusted EBITDA of $42.2 million at a 20.1% margin, representing 29.8% growth.

The company ended Q1 with $137.8 million in cash and, perhaps most tellingly, signaled it "expects to remain acquisitive."

CEO John Mazarakis kept the commentary characteristically brief: the focus is on "integration and optimization" while remaining "opportunistic with respect to further acquisition related growth opportunities."

For Vireo, Q1 2026 wasn't a quarter — it was a launchpad. The question now is whether integration can keep pace with ambition.

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Featured Organigram ($OGI) CEO James Yamanaka and Village Farms ($VFF) CEO Michael DeGiglio breaking down their latest earnings live. Yamanaka highlighted Organigram's Q2 Fiscal 2026 net revenue of $59.8M (-9% YoY) and adjusted EBITDA of $0.9M, along with raised full-year guidance. DeGiglio recapped Village Farms' Q1 2026 results including net sales of $50.2M (+27%), record international exports surging 171%, and adjusted EBITDA +118%.

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Village Farms International has spent six years methodically building what it believes is the most formidable cannabis production platform on the planet. The Q1 2026 results suggest that patience is paying off — handsomely.

The company reported consolidated net sales of $50.2 million, up 27% year-over-year, with net income of $2.9 million ($0.03 per share) and adjusted EBITDA from continuing operations of $9.9 million — a 118% increase that significantly outpaced revenue growth. That kind of operating leverage doesn't happen by accident. It happens when a company has built the infrastructure, secured the certifications, and positioned itself in the markets where demand is accelerating fastest.

The International Engine

The headline number that defines Village Farms' trajectory: international export sales grew 171% year-over-year to a record $14.6 million in Q1. That growth also represented a 60% sequential increase from Q4 2025 — meaning the international business isn't just growing, it's accelerating.

The primary driver is Germany, where Village Farms believes it remains the largest exporter of medical cannabis to Europe. The company holds three of the top five leading cultivars in the German market and four of the top 10 through its distribution partners. Pricing in Germany has remained stable, and management sees that dynamic holding "for the foreseeable future" — a meaningful statement in a market where some competitors have faced margin pressure from increasing supply.

What underpins that international dominance is infrastructure. Village Farms recently completed facility upgrades at its 4.8 million square foot production campus in Delta, British Columbia, which the company now believes is the world's largest EU-GMP certified cannabis facility. That certification isn't just a marketing claim — it's the prerequisite for accessing every major regulated medical cannabis market in Europe, and having it at this scale creates a production advantage that's exceptionally difficult to replicate.

The Netherlands operation is scaling rapidly as well, with sales increasing 448% year-over-year. The company's Phase II facility in the Netherlands is expected to commence full operations during Q2, with a ramp to full capacity by year-end. Once fully operational, the expansion will quintuple Netherlands production to approximately 10 metric tonnes annually — adding a significant European production node that complements the Canadian export business.

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Canadian Strength Continues

Village Farms' Canadian business delivered 5% growth in retail branded sales — a modest number in isolation, but one that reflects continued market share gains in the categories that matter most.

The company maintained a top-five overall market share position in Canada and held the No. 1 position in dried flower — the largest product category in the country. The Pure Sunfarms brand expanded its market share for the 15th consecutive month through April, driven by new strain introductions and packaging innovations designed to showcase flower quality and aromas.

That sustained share expansion in dried flower is particularly notable because it's happening in Canada's most competitive and mature product segment. Holding the top position for over a year straight requires consistent cultivation quality, effective brand management, and the kind of supply chain reliability that comes from operating at scale.

The company is also expanding Canadian production capacity. Village Farms began planting the first half of its Delta 2 greenhouse expansion, which is expected to begin contributing to sales late in Q2. The full expansion will yield an incremental 40 metric tonnes of annualized cannabis production, expanding Canadian capacity by approximately 33% once completed in 2027. That additional volume will feed both domestic demand and the rapidly growing international export pipeline.

Margin Expansion Tells the Story

The financial narrative in Q1 isn't just about revenue growth — it's about the quality of that growth.

Cannabis gross margin expanded to 43%, up from 39% in Q1 2025 — marking the fourth consecutive quarter above the company's targeted 30-40% range. When a company consistently beats the high end of its own margin guidance, it signals that the business model is performing better than management initially projected.

Cannabis net income improved 68% to $4.8 million, and the segment generated adjusted EBITDA of $10.2 million at a 20.5% margin, up from $6.9 million and 17.5% a year ago. The improvement was driven by the shift toward higher-margin products, international sales mix, and the inherent operating leverage of Village Farms' greenhouse infrastructure.

At the consolidated level, the company posted its fourth consecutive quarter of positive EPS from continuing operations — a streak that demonstrates sustainable profitability rather than one-time gains.

Cash flow from operations was negative $11.8 million in Q1, but that figure was distorted by $15 million in Canadian income taxes paid during the quarter related to prior-year obligations. Excluding that timing impact, the underlying cash generation was positive — and management expects to grow its cash balance from operating cash flow through year-end even after absorbing $6.4 million in share repurchases and $9.2 million in capital expenditures during the quarter.

Looking Ahead

Village Farms has several catalysts building through the remainder of 2026. The Delta 2 expansion begins contributing sales in the coming weeks. The Netherlands Phase II facility ramps through the second half. International demand continues to accelerate across Europe. And the company's capacity investments position it to capture that demand without needing additional capital cycles.

On the M&A front, CEO Michael DeGiglio signaled that "attractive opportunities" are emerging in both U.S. and international markets, but emphasized that the company intends to be "prudent and patient" in pursuing them. Village Farms also began a CFO succession process, with current CFO Steve Ruffini transitioning to a new leadership role focused on evaluating strategic M&A — a clear signal that deal activity is on the agenda.

The U.S. rescheduling of medical cannabis to Schedule III adds another dimension. While Village Farms' primary operations are Canadian and European, DeGiglio noted that broader rescheduling — currently the subject of an expedited DEA hearing beginning June 29 — "would represent a consequential step in modernizing U.S. cannabis policy" and could open new market opportunities aligned with the company's pharmaceutical-grade production capabilities.

The Bottom Line

Village Farms' Q1 2026 is the kind of quarter that separates operators who built real infrastructure from those who chased headlines. 27% revenue growth. 118% EBITDA growth. 171% international sales growth. 43% gross margins. Four straight quarters of positive EPS. And a production platform that may genuinely be the largest EU-GMP certified cannabis facility in the world.

In an industry still searching for companies that can grow profitably at scale, Village Farms is quietly making one of the most compelling cases in cannabis. The platform is built. The demand is real. And the numbers are starting to reflect both.

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$CRON ( ▼ 4.02% ) Reports Q1

The company reported record Q1 2026 net revenue of $45.2 million, up 40% year-over-year, with record gross profit of $19.2 million and net income of $15.7 million — more than doubling the prior year's $7.7 million. Adjusted EBITDA surged 122% to $5.1 million. And sitting behind all of it: an industry-leading $822 million in cash.

The growth engine is increasingly international. Export sales grew 171% year-over-year, with Israel delivering its ninth consecutive quarter of record net revenue — up 53% — as the PEACE NATURALS® brand continues to hold the No. 1 position in the Israeli medical cannabis market. Revenue from international markets outside Israel grew 97%, reaching record levels as European demand accelerates.

In Canada, the Spinach® brand hit a major milestone, capturing the No. 1 market share position in vapes for the first time while maintaining its dominant No. 1 ranking in edibles with a 20.8% market share. Spinach holds 5.5% total national market share as the No. 2 brand in Canada overall.

Production capacity is expanding to match demand. The Cronos GrowCo expansion is fueling increased volume, and the company began planting its Delta 2 greenhouse in Canada. The pending acquisition of CanAdelaar — one of ten licensed producers in the Dutch recreational cannabis pilot — is expected to close in summer 2026, establishing a strategic European adult-use footprint.

Cronos also renewed its $50 million share repurchase program, having already bought back approximately 13.4 million shares for $33.5 million over the past year.

With $822 million in cash, accelerating international growth, and brand leadership across multiple categories, Cronos has both the momentum and the firepower to keep scaling.

$LEEEF ( ▼ 2.79% ) Closes Funding Round

In a cannabis capital markets environment where raising money often feels like pulling teeth, LEEF Brands just closed an oversubscribed financing — and management put their own money in alongside investors.

The company announced the final closing of its previously announced raise led by Mindset Capital, bringing total gross proceeds to approximately US$9.3 million across both tranches. The financing consisted of common share units issued at C$0.25 (each including one share and one warrant exercisable at C$0.30 for 24 months) and convertible preferred shares carrying a 15% annual dividend (10% cash, 5% paid-in-kind) with a conversion price of C$0.38 per share.

CEO Micah Anderson and CFO Kevin Wilson both participated personally in the round — a detail that carries weight when management is asking outside investors to take a position in a micro-cap cannabis company operating in California's notoriously difficult market.

The proceeds are earmarked primarily for expanding Salisbury Canyon Ranch, LEEF's flagship cultivation asset, to its full 180-acre permitted capacity by fall 2026. Once complete, the ranch is projected to be one of the largest licensed cannabis farms in the country, supplying the low-cost, clean biomass that has already driven LEEF's gross margins to 49% — a figure the company delivered in Q1 while operating in the most price-compressed wholesale market in the industry.

Additional funds will support extraction lab upgrades, inventory expansion, working capital, and strategic growth initiatives as the regulatory landscape continues to evolve — including LEEF's ongoing pursuit of DEA licensing for potential interstate and international opportunities.

Anderson called the oversubscribed round a reflection of "the quality of our assets, the execution of our team, and the long-term opportunity we see ahead." In today's cannabis fundraising climate, getting a round done at all is notable.

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Recapped Village Farms ($VFF) Q1 2026 earnings. CEO Michael DeGiglio highlighted record international medical export sales surging 171% YoY to ~$15M (driving total revenue of $50.2M, EPS $0.03, cannabis net sales +27% to $49.7M, and adjusted EBITDA +118%), strong Netherlands/Germany growth, and facility upgrades making it the world's largest EU-GMP compliant site. The broadcast also covered deepening chaos in Texas TCUP (Compassionate Use Program) licensing and hemp regulations.

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Cresco Labs entered 2026 with a clear plan: strengthen core markets, expand the retail footprint, and position the company to capture the benefits of federal rescheduling. The Q1 results suggest that plan is working.

The branded cannabis CPG leader and operator of Sunnyside dispensaries reported Q1 2026 revenue of $151 million, with adjusted gross margin of 50.7%, adjusted EBITDA of $33 million at a 21.7% margin, and retained the No. 1 market share position in multiple billion-dollar markets. CEO Charlie Bachtell described the quarter as "continued progress against a clear plan and the strengthening of our growth platform."

The Financial Picture

Adjusted gross profit was $77 million at a 50.7% margin — a strong result for a company that balances significant wholesale branded CPG revenue alongside its retail operations. That margin profile reflects the value of Cresco's brand portfolio — Cresco, High Supply, FloraCal, Good News, Mindy's, and others — which continues to command shelf space and consumer loyalty across multiple states.

SG&A came in at $54 million, or 36% of revenue, with adjusted SG&A at $51 million and 33.7% — a cost structure that leaves room for improvement but reflects the overhead required to maintain brand leadership and multi-state retail operations simultaneously.

Net loss was $17 million, driven largely by the punitive effects of Section 280E — a tax burden that, for the medical portion of Cresco's business, has now been eliminated following the Schedule III rescheduling of state-licensed medical cannabis. That single policy change should produce measurable improvement in after-tax profitability in coming quarters without requiring any operational adjustment.

Adjusted EBITDA of $33 million at 21.7% represents a business generating real operating profitability, even as the net loss line continues to reflect the structural tax disadvantage that has weighed on every U.S. cannabis operator for over a decade. With 280E relief now flowing through the medical business, that gap between adjusted EBITDA and the bottom line should begin to narrow.

On the balance sheet, Cresco ended the quarter with $67 million in cash, a $310 million senior secured term loan, and a $19 million mortgage loan. It's a manageable but meaningful debt load that underscores why rescheduling-driven tax relief matters — every dollar freed from 280E can be redirected toward debt service, reinvestment, or operational expansion.

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Multi-State Expansion Accelerating

The most tangible progress in Q1 came from Cresco's aggressive retail buildout across several strategic markets.

In Ohio, the company opened two new Sunnyside dispensaries — Bridgeport on April 10 and Aberdeen on May 5 — deepening its presence in one of the country's most promising newer adult-use markets. Ohio has been posting impressive growth numbers, and Cresco is building retail density to capture share during the market's acceleration phase.

In Pennsylvania, Cresco began supporting operations of nine dispensaries under a management services agreement — a significant expansion of its retail presence in one of the nation's largest medical cannabis markets. Pennsylvania's adult-use legalization remains stalled by Senate Republican leadership, but the medical market alone supports substantial revenue, and any future conversion to adult-use would dramatically expand the addressable opportunity for operators already embedded in the state.

In Kentucky, the company transitioned from the investment phase into active revenue generation, completing its first harvest in April. Kentucky's medical program is in its earliest innings, but Cresco's operational head start positions it to establish brand presence and cultivate patient relationships as enrollment grows.

Across these three states, Cresco added 11 dispensaries to its platform subsequent to quarter end — a burst of retail expansion that meaningfully strengthens the company's national footprint.

Texas: Optionality With a Caveat

Cresco was conditionally awarded a Texas Compassionate Use Program license in early April — a potentially significant entry into the nation's second-most-populous state. However, that conditional status was subsequently affected when the Texas Department of Public Safety announced a corrected scoring tabulation on May 8, revealing that the original methodology didn't match the published weighting criteria. As a result of the re-tabulation, Cresco was moved to the TCUP eligibility list, where it remains positioned for potential future licensure if openings arise. Texas remains a long-term opportunity for the company, but the timeline is now less certain.

The Rescheduling Catalyst

Bachtell was unequivocal about the significance of federal rescheduling, calling the move of state-licensed medical cannabis to Schedule III "the most consequential reform this industry has seen."

For Cresco specifically, the immediate impact is the elimination of 280E on medical cannabis operations across every state where the company serves patients. That's a direct improvement to after-tax economics that requires no additional capital investment, no new product launches, and no operational restructuring — just the removal of a tax provision that was never intended to apply to legitimate, state-licensed businesses.

Looking ahead, the broader DEA hearing on general cannabis rescheduling begins June 29. If recreational cannabis also moves to Schedule III, the 280E relief would extend across Cresco's entire revenue base — a transformational shift in the company's financial profile.

Bachtell positioned the company accordingly: "We've built the operational foundation and balance sheet discipline to capture immediate benefits of rescheduling, while positioning Cresco to capitalize on the broader path to normalization."

Brand Leadership Holding

Cresco's core competitive advantage remains its branded product portfolio. According to Hoodie Analytics, the company retained the No. 1 market share position in multiple billion-dollar markets during Q1 — a testament to the staying power of brands like Cresco and High Supply in flower and concentrates, and Mindy's in edibles.

In an industry where brand loyalty is still being established, holding the top position across multiple large markets provides both pricing power and wholesale distribution leverage. It's the foundation on which every other element of Cresco's strategy — retail expansion, new state entries, rescheduling benefits — is built.

The Bottom Line

Cresco's Q1 2026 reflects a company doing the work: expanding retail, entering new markets, generating over $30 million in quarterly EBITDA, and holding No. 1 market share positions where it matters most. The rescheduling tailwind adds a financial catalyst that could meaningfully improve profitability without requiring a single operational change.

The growth platform is strengthening. The regulatory environment is shifting in the right direction. And the brand portfolio continues to lead. For Cresco, the story in 2026 is about converting years of disciplined execution into tangible financial results — and the pieces are falling into place.

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$RYM ( ▼ 3.01% ) Lands Major Venue

RYTHM just landed one of the most visible venue partnerships in the THC beverage space — and it's in their own backyard.

Navy Pier, the most visited destination in the Midwest with over 8 million annual guests, has named RYTHM as its official THC beverage partner in a multi-year deal launching May 22. The partnership centers on the RYTHM Stage in the Navy Pier Beer Garden, featuring events, pop-ups, sampling, and seasonal programming throughout what the Pier is calling its largest summer of programming ever.

Guests will be able to purchase RYTHM's full beverage lineup — including Sativa and Kush varieties — alongside Señorita THC Margaritas, all in 12oz cans with 5mg of hemp-derived THC. Products will be available at the beer garden and at select bars and points of sale across the Pier.

Chairman and Interim CEO Ben Kovler framed the deal as further validation of a shifting consumer landscape: "Consumers are choosing THC, and the venues they love are responding."

The Navy Pier partnership extends what's becoming an impressive Chicago footprint for RYTHM's beverage brands. Earlier this year, RYTHM and Señorita became the first THC beverages available at a major U.S. arena when the United Center named RYTHM its official THC sponsor. The brands are also available across 16" on Center venues — including The Salt Shed and Thalia Hall — and Jam Productions venues like the Riviera Theatre and Park West.

From arenas to iconic cultural landmarks to neighborhood music venues, RYTHM is systematically embedding itself into the places where people already gather — a distribution strategy that treats THC beverages not as a novelty but as a mainstream consumer choice.

Both brands are currently available at over 6,000 locations nationwide, with direct-to-consumer delivery through RYTHMDrinks.com and SenoritaDrinks.com.

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"Big Moves in Cannabis: Earnings, Policy, and Lawsuits” recapped key sector developments. Cresco Labs CEO Charles Bachtell highlighted Q1 results of $151M revenue and 50.7% gross margins, plus strong operator trends and cannabis ETFs. Trent Woloveck, Jushi Holdings CSO, discussed Virginia operations and an Ohio hemp lawsuit involving Shopify, UPS, and FedEx. Policy segments covered the CLIMB Act and SAFER Act, emphasizing how federal clarity would unlock major investment. The show was X-exclusive.

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TerrAscend doesn't generate the loudest headlines in U.S. cannabis. But quarter after quarter, it generates something more valuable: cash flow.

The North American cannabis operator reported Q1 2026 results that extended one of the most consistent financial track records in the industry — 15 consecutive quarters of positive operating cash flow and 11 consecutive quarters of positive free cash flow. In a sector where profitability claims often come with asterisks, TerrAscend's consistency stands on its own.

The Numbers

Net revenue came in at $65.5 million, up 1.9% year-over-year from $64.3 million in Q1 2025 and essentially flat sequentially against Q4 2025's $66.1 million. It's not explosive top-line growth, but TerrAscend isn't chasing volume at the expense of margins — it's optimizing what it has.

Gross profit margin was 52.8%, improving sequentially from 52.1% in Q4 and reflecting continued strength across the company's core markets of Maryland, Pennsylvania, and New Jersey. A cannabis operator consistently holding margins above 50% is operating at a level of efficiency that most peers can't sustain.

Adjusted EBITDA from continuing operations reached $17.4 million, or 26.5% of revenue — up from $16.7 million and 25.2% in Q4 2025. Year-over-year, the adjusted EBITDA margin dipped from 28.2%, but the sequential improvement signals that the business is tightening operations and moving back in the right direction.

G&A expenses declined sequentially to $21.5 million from $22.8 million in Q4, dropping to 32.8% of revenue from 34.4% — evidence of the "disciplined cost management" that management has emphasized across recent quarters.

GAAP net loss from continuing operations was $6.8 million, an improvement from the $7.7 million loss in Q1 2025, though wider than Q4's near-breakeven $0.5 million loss. The gap between GAAP loss and adjusted EBITDA profitability reflects the non-cash charges and below-the-line items that continue to weigh on reported earnings even as the operating business generates real cash.

Cash Flow: The Defining Metric

The cash flow picture is where TerrAscend's story crystallizes. Net cash from continuing operations was $8.7 million, slightly ahead of Q4's $8.3 million. Free cash flow was $7.8 million, up from $6.6 million last quarter, with capital expenditures held to just $0.9 million — a minimal figure that reflects a company in optimization mode rather than heavy buildout phase.

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On a trailing twelve-month basis, TerrAscend's operating cash flow yield was 13.3% and its free cash flow yield was 10.3% — metrics calculated against the company's market capitalization that underscore how much cash the business generates relative to its current valuation. Those are yields that would be attractive in any industry, let alone one still navigating the structural challenges of cannabis.

The company ended the quarter with $39.1 million in cash — a modest balance by large MSO standards, but sufficient for a business generating consistent positive free cash flow and maintaining disciplined capital allocation.

Market Position: Winning Where It Matters

TerrAscend's operational strength shows up most clearly in its retail performance across the Northeast corridor.

In New Jersey, all three Apothecarium stores ranked within the top 25 statewide and improved in rank quarter-over-quarter. The company held a leading market share position supported by new product launches and high-quality branded offerings.

In Maryland, two of four Apothecarium locations — Salisbury and Cumberland — ranked among the top 10 in the state. Market share grew during the quarter, driven by strong performance from core brands Kind Tree and Legend.

In Pennsylvania, five of six Apothecarium stores ranked among the top 15 statewide, and both Kind Tree and Legend delivered double-digit growth across key categories, contributing to continued market share gains. The company also completed first harvests from additional cultivation rooms in Pennsylvania, expanding production capacity ahead of potential adult-use legalization — a development that, if and when it materializes, would dramatically expand TerrAscend's addressable market in one of its strongest states.

The company also launched the Tyson 2.0 brand into Pennsylvania and Maryland through an exclusive licensing agreement, adding a recognizable consumer brand to its retail and wholesale portfolio.

The Rescheduling Catalyst

Executive Chairman Jason Wild was direct about what Schedule III rescheduling means for TerrAscend's trajectory. The elimination of the 280E tax burden on medical cannabis operations "is a historic step forward" that Wild expects will "enhance profitability, strengthen our balance sheet, and lower our cost of capital over time."

But Wild went further, flagging what could be an even more transformative development: "We believe the anticipated rescheduling of adult-use cannabis in the coming months will further expand access to institutional capital and provide TerrAscend with an opportunity to uplist to the NASDAQ or NYSE."

That's a significant statement. Uplisting to a major U.S. exchange would expose TerrAscend to a dramatically larger pool of institutional investors, many of whom are currently restricted from purchasing securities listed on the Canadian Securities Exchange or OTC markets. Combined with 280E relief and improved access to traditional banking and lending, an uplist could fundamentally re-rate the stock.

The company also appointed Eric Jackson as Chief Financial Officer in April, bringing over two decades of financial leadership experience across large-scale retail and consumer businesses — the kind of hire you make when you're preparing for a more complex, institutionally-oriented operating environment.

The Bottom Line

TerrAscend's Q1 2026 won't make anyone's jaw drop with a single headline number. There's no 20% revenue surge or billion-dollar market entry. What there is, instead, is something more valuable in this industry: relentless consistency.

Fifteen quarters of positive operating cash flow. Eleven quarters of positive free cash flow. Gross margins above 50%. Adjusted EBITDA margins above 26%. Top-ranked dispensaries across three competitive Northeast markets. And now, a federal rescheduling tailwind that could eliminate 280E costs, unlock institutional capital, and open the door to a major exchange listing.

TerrAscend has been quietly building one of the most financially disciplined operations in U.S. cannabis. The question is whether the market will finally start paying attention — because the numbers have been there all along.

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$NLCP ( ▼ 0.84% ) Slaps Q1

NewLake Capital Partners occupies a unique position in the cannabis ecosystem — it doesn't grow, process, or sell cannabis. It owns the buildings where other companies do. And in Q1 2026, the cannabis REIT continued to deliver exactly what its investors expect: rent checks and dividends.

The company reported total revenue of $12.3 million for the quarter, down 6.8% from $13.2 million in Q1 2025. The decline was driven by vacancies at three cultivation facilities — in Pottsville, PA; Sparks, NV; and Fitchburg, MA — following tenant departures in 2025. Those vacancies reduced rental income and added carrying costs that flowed through to the bottom line. AFFO (adjusted funds from operations, the key REIT profitability metric) was $10.1 million, or $0.48 per share, down 5.9% year-over-year.

The headline that matters most for income investors: NewLake declared a $0.43 per share quarterly dividend, equivalent to an annualized $1.72 per share, representing a 90% AFFO payout ratio. The company also collected 100% of contractual rent during the period — a detail that carries extra weight given the financial stress some cannabis tenants are experiencing.

Speaking of stress: The Cannabist Company, which operates at four NewLake properties across Illinois and Massachusetts, announced restructuring proceedings under Canada's CCAA during the quarter, with plans to seek Chapter 15 recognition in the U.S. Despite the restructuring, Cannabist remained current on all lease obligations to NewLake, and the company holds roughly $482,000 in security deposits across those four properties. It's a situation worth monitoring, but not one that's impacted cash collection — yet.

On the positive side, NewLake executed lease modifications that added stability to its portfolio. A San Diego dispensary lease was extended through 2034 following a change of control to Wellgreens. And the company added Holistic Industries and Canopy USA as additional guarantors on Pennsylvania and Massachusetts leases, respectively — moves that strengthen tenant credit quality without requiring NewLake to deploy additional capital.

The balance sheet remains conservatively managed. Total liquidity stood at $107.2 million, debt-to-gross-assets was just 1.6%, and the debt service coverage ratio was approximately 72x — fortress-level metrics by any standard. No debt matures until May 2027.

CEO Anthony Coniglio called medical cannabis rescheduling "a pivotal moment" that has the potential to "strengthen the operating environment for our tenants" — which, for a landlord, is the most important outcome of all.

$TCNNF ( ▼ 9.14% ) Is Best In Breed

Trulieve just reminded everyone why it remains one of the most formidable operator in U.S. cannabis — and with Schedule III now in effect, the company's financial profile is about to get even more compelling.

The Florida-based cannabis giant reported Q1 2026 revenue of $287 million, with 92% coming from retail sales — a concentration that reflects Trulieve's dominance as a vertically integrated retail machine rather than a wholesale-dependent operator. Revenue was down 4% year-over-year and 2% sequentially, reflecting ongoing price compression and competitive dynamics, but the profitability metrics tell a much stronger story.

Gross margin held at 59%, generating $170 million in gross profit. Adjusted EBITDA was $100 million, or 35% of revenue — a margin that remains among the highest in the industry. Operating expenses declined 10% year-over-year to $134 million, demonstrating meaningful cost discipline even as the top line faced pressure.

The cash generation was equally impressive. Operating cash flow was $56 million, with free cash flow of $42 million — numbers that funded continued expansion while leaving the company with $353 million in cash at quarter end. Trulieve also closed a $60 million private placement of senior secured notes due 2030, further extending its debt maturity profile.

On the bottom line, Trulieve posted positive GAAP net income of $2 million — a notable swing from the $33 million loss in Q1 2025 and the $43 million loss in Q4 2025. Adjusted net income was $20 million, or $0.10 per diluted share, excluding non-recurring charges and impairments.

The operational footprint continues to expand. Trulieve opened three dispensaries during Q1 and four more subsequently, bringing total retail locations to 240 nationwide with over four million square feet of cultivation and processing capacity. The company's rewards program also crossed one million members — a consumer loyalty asset with significant long-term value.

The rescheduling catalyst looms largest. CEO Kim Rivers praised the Trump administration's action and noted that Trulieve has filed DEA registration applications for 206 retail locations serving medical patients — the largest single-company filing disclosed to date. With 3.5 million square feet of medical production capacity and the industry's deepest retail network, no operator stands to benefit more directly from 280E elimination on medical operations.

At $100 million in quarterly adjusted EBITDA and $42 million in free cash flow, Trulieve is already operating like a blue-chip consumer company. Remove the 280E tax burden, and the numbers get substantially better.

$CRDL ( ▼ 3.65% ) Boosts Street Cred

Cardiol Therapeutics just earned a significant stamp of academic credibility for its cannabinoid-based heart disease therapy.

The company announced that results from its Phase II study evaluating CardiolRx™ in patients with recurrent pericarditis have been accepted for publication in the Journal of the American Heart Association (JAHA) — one of the most respected peer-reviewed cardiovascular journals in medicine.

The published findings demonstrate that CardiolRx™ treatment was associated with rapid and sustained reductions in pericarditis pain and inflammation in patients with high baseline disease burden, along with a substantial reduction in pericarditis episodes per year and a favorable safety and tolerability profile. For a cannabinoid-derived therapy to earn publication in a top-tier cardiology journal, the data needed to be compelling — and apparently it was.

CEO David Elsley called the publication "important independent validation" of the clinical findings, emphasizing CardiolRx™'s positioning as a differentiated, non-immunosuppressive therapy — a meaningful distinction in a treatment landscape currently dominated by immunosuppressive options that carry their own significant side-effect burdens.

The Phase II results directly informed the design of MAVERIC, the company's pivotal Phase III trial — a randomized, double-blind, placebo-controlled study evaluating CardiolRx™ for prevention of recurrent pericarditis. That trial recently surpassed 75% enrollment, putting it on track for completion and potential regulatory submission.

Recurrent pericarditis affects a meaningful patient population with limited treatment options, and a cannabinoid-derived therapy with published Phase II data in JAHA represents exactly the kind of science-first approach that gives the broader cannabis-as-medicine narrative genuine credibility.

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Highlights:

• Overview: Dales Report asks if cannabis is entering its most important moment yet.

• Core Topic: New livestream examines federal policy shifts, rescheduling progress, and historic turning points for the industry.

• Key Developments: Covers recent White House cannabis meetings, congressional actions, and changing enforcement stance.

• Industry Implications: Analyzes impacts on operators, capital access, margins, and sector growth potential.

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Green Thumb Industries didn't just deliver a good quarter — it delivered the kind of quarter that makes you wonder why this company's stock isn't trading at a significantly higher multiple.

The leading U.S. cannabis operator and owner of RISE Dispensaries reported Q1 2026 revenue of $300.2 million, up 7.4% year-over-year, with normalized EBITDA of $93.5 million at a 31.2% margin, GAAP net income of $15.4 million, and operating cash flow of $76 million. The company ended the quarter with $344.5 million in cash — a war chest that's being deployed aggressively into share repurchases while the market continues to undervalue the business.

CEO Ben Kovler put it simply: "Our conviction in Green Thumb remains as strong as ever." The numbers make that conviction easy to justify.

Revenue Growth With Multiple Drivers

The 7.4% top-line growth was driven by a combination of new market launches and continued expansion in existing states. The most significant contributor was Minnesota, where Green Thumb launched adult-use sales on September 17, 2025, adding a meaningful new revenue stream that didn't exist in the prior year comparable. Connecticut and Florida also delivered continued growth, helping offset headwinds from price compression and increased competition that are impacting virtually every operator in the industry.

Retail revenue increased 4.7% year-over-year, though same-store comparable sales (stores open at least 12 months) dipped 0.5% on a base of 100 stores — a modest decline that reflects the pricing pressures endemic to maturing cannabis markets rather than any deterioration in consumer demand.

On the Consumer Packaged Goods side, gross revenue declined 1.6% versus the prior year, primarily due to the same price compression dynamics, partially offset by Minnesota adult-use contributions. The branded wholesale business remains a strategic asset, but it's navigating the same competitive environment squeezing margins across the sector.

Margins: Strong but Evolving

Gross profit was $143.6 million, or 47.9% of revenue — down from 51.3% in Q1 2025. The margin compression was driven primarily by brand license fees incurred in the current period (a new cost structure related to the RYTHM, Inc. separation) and ongoing price compression in wholesale markets. A nearly 340 basis point gross margin decline is notable, but the absolute dollar figure remained virtually unchanged year-over-year at $143.6 million versus $143.3 million — meaning Green Thumb is generating the same gross profit on higher revenue.

SG&A expenses were $102.9 million, or 34.3% of revenue — an improvement from 36.1% in the prior year period despite a modest increase in absolute dollars driven by higher compensation costs. The company is demonstrating operating leverage as revenue scales.

Normalized EBITDA of $93.5 million at a 31.2% margin was up from $85.2 million and 30.5% in Q1 2025 — a meaningful improvement that reflects disciplined cost management even as new expenses like licensing fees enter the picture. A cannabis company generating nearly $100 million in quarterly EBITDA with margins above 31% is operating at a level that few peers can match.

Net income of $15.4 million, or $0.07 per share, was up from $8.3 million in Q1 2025, though the increase was partially driven by a one-time $17 million arbitration settlement and $6.5 million in income from a related party equity method investment. Excluding those items, the underlying profitability was steady — which, in an industry where most companies are still posting losses, remains a distinguishing characteristic.

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Cash Flow and Capital Allocation

The cash flow story is where Green Thumb truly separates itself. Operating cash flow of $76 million in a single quarter is remarkable — and it's being redeployed with conviction.

During Q1, the company repurchased approximately 6 million shares for $33.3 million at an average price of $5.51 per share. Subsequent to quarter end, another 7.4 million shares were repurchased, bringing 2026 year-to-date buybacks to approximately 13.4 million shares for roughly $77.7 million.

Since initiating its share repurchase programs in September 2023, Green Thumb has now repurchased approximately 29 million shares for roughly $200 million. That's not a token gesture — it's a systematic, multi-year capital return program funded entirely by operating cash flow, executed by a management team that clearly believes the market is mispricing their business.

The balance sheet reinforces the confidence. Cash of $344.5 million against total debt of $289.9 million (including $188.8 million in senior debt) gives Green Thumb a net cash position — an extraordinary rarity in U.S. cannabis. The company also increased its syndicated credit facility by $50 million during the quarter, adding further financial flexibility.

Strategic Developments

Beyond the financial results, Green Thumb advanced several strategic initiatives that extend its competitive positioning.

The company was conditionally awarded a Texas Compassionate Use Program license for vertically integrated operations — opening the door to one of the largest potential cannabis markets in the country, even in its current medical-only form.

Green Thumb also submitted DEA registration applications for certain state-licensed medical cannabis operations following the Schedule III rescheduling — putting the company at the front of the queue for formal federal recognition and the 280E tax relief that comes with it.

President Anthony Georgiadis framed the rescheduling moment in operational terms: "The resulting Section 280E relief for the medical portion of our business creates meaningful flexibility to reinvest in our operations, our people, and the communities we serve." That's the practical translation of rescheduling — not just a policy milestone, but real dollars flowing back into the business.

The Bottom Line

Green Thumb's Q1 2026 is the financial profile of a company that has already won the operational battle and is now positioned to harvest the regulatory tailwind. $300 million in revenue. $94 million in normalized EBITDA. $76 million in operating cash flow. $345 million in cash. Net cash balance sheet. $200 million in cumulative buybacks.

And now, 280E relief on medical operations, a Texas license, and DEA registration applications filed.

Kovler said the team is "focused on disciplined execution and building for the future." Based on Q1, the future is already here — the market just hasn't fully priced it in yet.

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$LEEEF ( ▼ 2.79% ) Earnings Strong, and the Farm is Expanding

LEEF Brands just posted the strongest operating quarter in its history — and it did it in the toughest wholesale market in the country.

The California cannabis company reported Q1 2026 revenue of $9.4 million, flat year-over-year on the top line but dramatically improved underneath. Unit volumes surged 60% on core extraction lines, with the flat revenue reflecting persistent pricing pressure in California's distillate market — a headwind that would have crushed a less efficient operator. Instead, LEEF used its vertically integrated model to turn compression into a margin story.

And what a margin story it is. Gross margin more than doubled to 49%, up from 22% in Q1 2025, driven by increased use of in-house biomass from Salisbury Canyon Ranch and higher output from the company's hydrocarbon extraction line. Gross profit jumped to $4.6 million from $2.1 million. Adjusted EBITDA swung from negative $700,000 to positive $2.4 million. And operating cash flow flipped to positive $400,000 from negative $1.8 million — a figure that would have been approximately $1.6 million excluding seasonal DCC licensing fees paid during the quarter.

CFO Kevin Wilson put it in context: "Per-gram pricing in California continues to compress, yet we grew unit volumes by 60% and expanded gross margin to 49%. The cost structure we've built would produce significantly stronger economics in any other state."

That cost structure is about to scale further. LEEF has begun expanding Salisbury Canyon Ranch toward its full 180-acre permitted capacity, adding 14 DCC licenses this spring with the first 2026 harvest expected in June. The expansion is funded by an initial $4.5 million tranche from Mindset Capital, with the remainder of an $8 million round expected to close on May 8. Full farm buildout is targeted for year-end.

The company is also thinking beyond California. CEO Micah Anderson highlighted interstate and global export as significant opportunities, noting that LEEF has engaged Shane Pennington — a leading expert on DEA licensing — and has submitted applications for multiple DEA licenses to support future domestic and international capabilities.

Combined with the recently announced acquisition of Himalaya, which adds a premium branded concentrates platform to LEEF's wholesale backbone, the company is building something increasingly rare in California cannabis: a vertically integrated operator with low-cost inputs, expanding capacity, and a credible path to markets beyond state lines.

Target is Now Selling THC Drinks in TX, FL & IL, but...

Target is doing something that takes either remarkable confidence or remarkable nerve: aggressively expanding into hemp-derived THC beverages just months before the federal government is set to ban them.

The retail giant is rolling out cannabis beverage sales to more than 300 stores across Illinois, Florida, and Texas — including every location in Florida and Texas — building on a pilot program that launched at 10 Minnesota stores last year before expanding to all 72 Target locations in the state. The company is also increasing potency, now selling beverages with up to 10 mg of THC, double the 5 mg cap in its initial Minnesota rollout.

Brands featured in the expansion include Birdie, Cann, Señorita, Wyld, Wynk, and several others that have become staples of the emerging THC beverage category.

The timing is impossible to ignore. Congress passed and President Trump signed legislation that will recriminalize hemp-derived products containing more than 0.4 mg of THC per container — a ban set to take effect in November 2026. Bipartisan efforts to delay the ban have failed to gain traction with congressional leadership, and the House recently passed its Farm Bill without any provision to push back the deadline.

Target appears to be eyes-wide-open about the risk. According to BevNET, the company is reportedly planning to mark down its intoxicating hemp inventory in October if no regulatory solution emerges — essentially hedging its bet with a clearance strategy built into the plan.

The expansion into the second, third, and sixth most populous U.S. states signals that Target sees real consumer demand worth capturing, even on a potentially compressed timeline. And the data supports it — surveys show a majority of Americans view cannabis as healthier than alcohol, and four in five adults who drink THC beverages report reducing their alcohol intake.

The November clock is ticking. Target is running toward it, not away.

Source: MM

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Highlights:

• Overview: Dales Report examined if anti-cannabis group SAM is hurting its federal credibility with aggressive tactics in Massachusetts.

• Core Topic: Guest Ryan Dominguez discussed SAM’s $1.55M push to repeal adult-use cannabis sales via 2026 ballot initiative.

• Misleading Tactics: Paid signature gatherers allegedly lied to voters, claiming the petition was about fentanyl, housing, and schools instead of banning recreational cannabis.

• Federal Risks: State-level misleading efforts and dark money could damage SAM’s ongoing federal fights against cannabis rescheduling.

💸 The Tape

For three years, Curaleaf has been building through headwinds — restructuring debt, expanding internationally, and positioning for a regulatory shift that always seemed to be six months away. In Q1 2026, the headwinds finally started turning.

The world's largest cannabis company by revenue reported first quarter net revenue of $324.2 million, up 6% year-over-year and ahead of both company guidance and internal expectations. CEO Boris Jordan didn't understate the moment: "The macro headwinds that constrained growth over the past three years are now beginning to turn into meaningful tailwinds."

He's not wrong. Between federal rescheduling, accelerating international growth, and a domestic business that's quietly regaining momentum, Curaleaf's Q1 reads like the beginning of a different chapter.

The Revenue Picture

The 6% year-over-year growth was driven by complementary strength across both segments. Domestic revenue came in at $277 million, up 2% from Q1 2025, with retail revenue of $215.2 million and wholesale revenue of $61.5 million — the latter reflecting a notable 18.7% year-over-year increase that suggests Curaleaf's branded wholesale business is gaining traction with third-party retailers.

International revenue was the standout, hitting $47.2 million — up 35% year-over-year from $34.9 million in Q1 2025. That international number now represents nearly 15% of total revenue, up from roughly 11% a year ago. The growth was fueled by expanding operations across Germany, the UK, Poland, and other European markets where Curaleaf has been methodically building infrastructure.

Sequentially, total revenue dipped 3% from Q4 2025's $333.1 million, reflecting typical post-holiday seasonality rather than any structural weakness. The year-over-year trajectory is what matters — and it's pointing decisively upward for the first time in several quarters.

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Margins and Profitability

Gross profit came in at $157.3 million, with a 49% gross margin — down 220 basis points year-over-year. Management noted that the international segment created a 170 basis point drag on overall margins, which is expected at this stage of international scaling where upfront costs precede full revenue maturation. As European operations reach scale, that drag should narrow.

Adjusted EBITDA landed at $63.4 million, representing a 19.6% margin — down 200 basis points from the prior year period. The compression reflects the same international investment dynamic plus ongoing competitive pressures in certain domestic markets. It's a margin profile that has room to improve, particularly as 280E tax relief begins flowing through the medical business following rescheduling.

The headline profitability number: net income from continuing operations of $70.1 million, or $0.09 per share. In an industry where net losses remain the norm for most operators, Curaleaf posting meaningful positive net income is a differentiator that shouldn't be overlooked.

Cash Flow and Balance Sheet

Operating cash flow from continuing operations was $21.3 million, with free cash flow of $4.3 million after $17 million in capital expenditures focused on facility upgrades, automation, and selective retail expansion. The company ended the quarter with $106.1 million in cash.

On the debt side, Curaleaf executed a significant refinancing during the quarter, closing a $500 million private placement of non-dilutive senior secured notes due February 2029, using the proceeds to fully repay its outstanding 2026 senior secured notes. That's a clean maturity extension that removes near-term debt pressure and gives management breathing room to execute the growth strategy without a refinancing cliff looming overhead.

Total outstanding debt stood at $565.1 million net of discounts and deferred financing fees — a substantial figure, but more manageable with the extended maturity profile and the prospect of improved cash flow from 280E relief.

The Footprint

Curaleaf continues to build retail density in its most strategic markets. During Q1, the company deepened its Florida presence to 72 dispensaries with new locations in Lauderhill and Cape Coral. It opened an adult-use dispensary in Bangor, Maine, bringing the state total to six. And it expanded in Ohio — one of the country's newest adult-use markets — with two new Curaleaf-branded dispensaries in Findlay and Lorain through a partnership with RC Retail.

The nationwide store count now stands at 164 dispensaries — a retail footprint that, combined with Curaleaf's wholesale and international operations, creates a multi-channel revenue base that few competitors can match.

On the product side, the company launched the Select Briq 2 vape across 12 states during the quarter — a format innovation in one of the fastest-growing product categories in cannabis.

Post-Quarter Moves

The activity after March 31 has been equally significant. Curaleaf launched Dark Heart, its ultra-premium flower brand, across 11 states to what the company describes as strong consumer reception. The brand extension into premium flower addresses a segment where margins are typically higher and consumer loyalty runs deeper.

Internationally, Curaleaf completed the buyout of the remaining 45% of Four 20 Pharma, taking full ownership of its German medical cannabis subsidiary and appointing co-founder Torsten Greif to the company's board. That move gives Curaleaf end-to-end control of its European seed-to-patient supply chain — from cultivation in Portugal and Canada through to distribution in Germany and beyond.

And in what may be the most symbolically significant post-quarter development, Curaleaf filed DEA registration applications for certain medical cannabis locations — putting the company at the front of the line for the federal registration pathway created by the Schedule III rescheduling order.

The Rescheduling Catalyst

Jordan framed rescheduling as more than a policy milestone — he called it "a shift in the trajectory of our business and the industry overall." For a company of Curaleaf's scale, operating medical cannabis programs across the majority of its markets, the elimination of 280E on qualifying medical operations represents an immediate and material improvement to after-tax economics.

But the benefits extend beyond taxes. Federal recognition of medical cannabis legitimacy opens doors to better capital markets access, more favorable lending terms, and the kind of institutional investor interest that has historically avoided the sector. Curaleaf's $500 million refinancing was completed before rescheduling took effect — imagine what the terms might look like in a post-280E world.

The Bottom Line

Curaleaf's Q1 2026 is the quarter where the narrative shifts from "building through adversity" to "positioned for acceleration." Revenue growing. International scaling. Net income positive. Balance sheet restructured. DEA applications filed. European operations fully consolidated.

The company that spent three years investing through headwinds is now positioned to harvest the tailwinds. As Jordan put it: Curaleaf isn't just positioned to benefit from the regulatory shift — it intends to "lead the next phase of industry growth."

The setup has never been stronger. Now it's about execution.

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$RYM ( ▼ 3.01% ) Found Its RYTHM

RYTHM, Inc. is doing something unusual in cannabis: generating revenue from brands without growing a single plant.

The Nasdaq-listed THC brand company — whose portfolio includes RYTHM, Señorita, incredibles, Beboe, and Dogwalkers — reported Q1 2026 revenue of $13.3 million, up 24% sequentially, with a gross margin of 78%. Those are CPG-style margins that most cannabis operators can only dream about, and they reflect RYTHM's asset-light model built around intellectual property licensing rather than cultivation and retail operations.

The financial architecture became even clearer this quarter. RYTHM amended its brand licensing agreements with Green Thumb Industries to establish fixed annual cash licensing fees of $70 million, with annual increases tied to inflation. That structure provides predictable, recurring revenue from some of the most recognized brands in cannabis — a foundation that transforms RYTHM from a startup narrative into something resembling a royalty company.

Adjusted EBITDA was approximately breakeven, with $1 million in operating cash flow and a cash balance of $33.3 million. Net income of $19.9 million was driven largely by a $25.6 million non-cash tax benefit, so the headline profit number requires context — but the underlying business trajectory is moving in the right direction.

The brand portfolio continues to perform. According to BDSA, RYTHM ranked No. 1 nationally in branded flower and Dogwalkers held the No. 1 position in uninfused pre-rolls during Q1. incredibles expanded with Peanut Buddah Cups and Strawberry Supernova Comets, while the company launched 1777 by Señorita — its first non-alcoholic hemp-derived THC spirit — pushing further into the fast-growing THC beverage category.

Chairman and Interim CEO Ben Kovler — who also leads Green Thumb — highlighted the multi-channel opportunity: "From convenience and grocery stores to arenas and concert venues, RYTHM brands are available where American consumers shop." The THC beverage push is particularly strategic given consumer trends, though Kovler acknowledged the shadow of the potential federal hemp ban that could reshape the hemp-derived THC landscape.

Looking ahead, RYTHM is guiding for Q2 revenue of approximately $22 million — representing 65% sequential growth — a number that, if achieved, would signal rapid acceleration in the licensing model's revenue capture.

With category-leading brands, a $70 million annual licensing structure, and a Nasdaq listing that provides access to traditional capital markets, RYTHM is building the case that in cannabis, owning the brands may be more valuable than owning the plants.

SAM Sues Against A Smart Approach To Marijuana

It didn't take long. The legal challenge to cannabis rescheduling that everyone expected has officially arrived.

Smart Approaches to Marijuana (SAM) and the National Drug and Alcohol Screening Association (NDASA) filed a lawsuit Monday with the U.S. Court of Appeals for the District of Columbia Circuit, asking the court to review and set aside the Trump administration's rescheduling order that moved state-licensed medical cannabis from Schedule I to Schedule III of the Controlled Substances Act.

The petition alleges that the rescheduling order "violates the rulemaking requirements of the Administrative Procedure Act" and "exceeds the statutory authority of the Attorney General under the CSA," calling it "arbitrary and capricious and not in accordance with law."

The legal representation is notably pointed: SAM is using Torridon Law PLCC, a firm where former U.S. Attorney General William Barr — who led the DOJ during Trump's first term — is a partner. That's a deliberate choice. Hiring the former president's own AG to sue the current president's DOJ adds a layer of political irony that isn't lost on anyone following the case.

SAM CEO Kevin Sabet framed the lawsuit in apocalyptic terms, calling the rescheduling order something that "gave federal approval to a new Big Tobacco industry selling cookies, gummies, and sodas laced with highly potent marijuana." He added: "This is a fight for the next generation." Marijuana Moment

The core legal argument centers on process, not science. SAM contends that Acting Attorney General Todd Blanche bypassed the formal rulemaking procedures required under federal law when he used the UN Single Convention treaty pathway to immediately reclassify medical cannabis — rather than completing the traditional administrative hearing process. It's a procedural challenge, but procedural challenges can be effective when the government takes shortcuts, even popular ones.

This isn't SAM's first swing at rescheduling-related policy this year. The organization also filed a separate lawsuit seeking to block the Trump administration's Medicare CBD pilot program, and has worked with lawmakers on legislation that would preserve 280E tax penalties on cannabis businesses regardless of scheduling changes.

The timing matters. The DEA's broader administrative hearing on whether to reschedule all marijuana — including recreational — is set to begin June 29. A court order pausing or reversing the existing medical rescheduling before that hearing could throw the entire federal cannabis reform timeline into uncertainty.

The industry expected this fight. Now it's here.

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DEA Sees Strong Early Demand for Cannabis Registration | TTB Presented by Flowhub

Highlights:

• Ohio Market Surge: April 2026 sales hit approximately $107 million, up ~26% YoY, with early signs that recent hemp restrictions may be driving consumers back to licensed dispensaries — a trend worth watching.

• White House Potency Focus: A new report highlights the administration zeroing in on high-potency cannabis marketing as part of its national drug strategy, signaling that even as reform advances, public health scrutiny is tightening.

• Curaleaf Q1 Breakdown: The hosts dig into Curaleaf's Q1 2026 earnings, examining what stood out and how the company is positioning for a post-280E landscape.

• DEA Registration Momentum: Just one week after the DEA opened its medical cannabis registration portal, more than 400 state-licensed operators have already submitted applications — a clear signal the industry is moving fast.

💸 The Tape

Pennsylvania has everything it needs to legalize adult-use cannabis — the public support, the economic imperative, the neighboring-state pressure, and a governor who's been asking for it for three straight years. What it doesn't have is a Senate willing to let it happen.

And as of this week, the obstacle has a new face. Republican gubernatorial candidate Stacy Garrity, the state's current Treasurer, said she is opposed to legalizing recreational marijuana and would veto any bill to do so if elected governor. It's a declaration that adds another layer of uncertainty to an already gridlocked legalization effort — and one that sharpens the stakes of November's election for the cannabis industry.

Meanwhile, the Republican leadership that actually controls the Senate right now hasn't budged. Senate Majority Leader Joe Pittman (R) remains the primary obstacle, stating: "I do not see a prevailing view for legalization of recreational marijuana within our caucus as part of the current budget." Senate President Pro Tempore Kim Ward (R) has long opposed recreational legalization and has repeatedly questioned the mechanics of state involvement in a cannabis market, asking pointedly how the state would pay employees "with money that is coming from a federally illegal entity."

That federal argument, it's worth noting, just got significantly weaker. The Trump administration's rescheduling of state-licensed medical cannabis to Schedule III — effective April 22 — directly undermines the "federal conflict" rationale that Pennsylvania Senate Republicans have leaned on for years. Cannabis is no longer classified alongside heroin. The DEA is actively registering medical dispensaries. The legal landscape has fundamentally shifted. And yet, the Senate's position hasn't moved an inch.

The Legislative Graveyard

The recent history of cannabis legislation in Pennsylvania reads like a case study in institutional paralysis.

In May 2025, the Democratic-controlled House passed HB 1200 by the narrowest possible margin — 102 to 101 — on a strict party-line vote. The bill proposed a novel model: adult-use cannabis sold through state-operated stores overseen by the Pennsylvania Liquor Control Board, similar to how the commonwealth handles liquor. Within a week, the Senate Law and Justice Committee killed it in a 7-3 vote.

Senate Republicans didn't just oppose the bill — they mocked it. Sen. Dan Laughlin (R-Erie), who chairs the committee and is himself a legalization supporter, called it "dead on arrival" and declared that "a state-store model for adult-use cannabis will not pass the Senate. That's not an opinion, it's a fact."

The irony is that bipartisan alternatives exist. Laughlin and Sen. Sharif Street (D) introduced SB 120, a private retail model with a 14% combined tax rate, possession limits of 30 grams, and a $100,000 conversion fee for existing medical operators. Reps. Emily Kinkead (D) and Abby Major (R) filed HB 20, another private retail bill with a 13% tax rate and 60 social equity permits. Both bills use the kind of privately-run, state-licensed framework that Senate Republicans claim to prefer. Neither has been scheduled for a hearing.

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The Money Problem Pennsylvania Can't Ignore

If the political arguments for legalization aren't moving the needle, the fiscal ones are getting harder to dismiss.

Governor Josh Shapiro has included cannabis legalization in each of his last three budget proposals. His administration projects the state would generate more than $729 million in its first year — the bulk from one-time licensing fees — with annual tax revenue exceeding $200 million once fully implemented. The state's Independent Fiscal Office projects even higher numbers, estimating annual revenue reaching $432 million by 2030-2031.

Those aren't hypothetical dollars. Pennsylvania is staring down a $5.1 billion structural deficit, with the state's rainy day fund projected to be largely depleted by the 2027-28 fiscal year. The House recently passed Shapiro's budget plan — which relies in part on projected cannabis revenue — but the Senate's Republican leadership expressed "profound concerns" about spending levels without engaging on the revenue solution sitting right in front of them.

Meanwhile, five of Pennsylvania's six neighboring states have legalized adult-use cannabis. Up to 60% of customers at border-state dispensaries are reportedly Pennsylvania residents. Every dollar those consumers spend in New Jersey, New York, Ohio, or Maryland is revenue Pennsylvania chose to forfeit.

The Medical Foundation

What makes Pennsylvania's inaction particularly frustrating is that the state already has one of the most robust medical cannabis programs in the country. With more than 439,000 registered patients, 185 dispensaries, and over $1.7 billion in annual sales, the infrastructure for adult-use expansion is essentially built. The cultivation facilities exist. The retail networks exist. The regulatory framework exists. The only thing missing is the legislative permission to serve a broader consumer base.

Federal rescheduling makes that existing medical infrastructure even more valuable. With 280E tax relief now applying to Schedule III medical operations, Pennsylvania's licensed operators are about to see meaningful improvements to their after-tax profitability — but only on the medical side. Adult-use revenue, which would dramatically expand the addressable market, remains locked behind the Senate's refusal to act.

The Election Factor

Garrity's veto pledge introduces an uncomfortable variable into the 2026 calculation. While Governor Shapiro holds a commanding lead in polling — a 22-point advantage in a recent Susquehanna Polling survey with just 5% undecided — the fact that the Republican candidate is running explicitly against legalization means a Shapiro loss would close the door entirely for the foreseeable future.

Garrity herself acknowledged the political reality, saying of legalization: "They're never going to pass it. Not as long as Senate Republicans are in control of the Senate." She's probably right about the current session. But her willingness to promise a veto signals that even if Senate dynamics eventually shift, a Republican governor would block reform regardless.

Where This Leaves Things

Seven out of ten Pennsylvania voters support legalizing adult-use cannabis — including 67% of Republicans and 64% of independents. The fiscal case is overwhelming. The federal landscape has shifted decisively. The medical infrastructure is ready. And still, a handful of Senate Republican leaders continue to hold the entire process hostage.

NORML regional director Chris Goldstein put it as plainly as anyone: "We are still spinning our wheels in Pennsylvania."

The wheels will keep spinning until either Senate leadership changes its mind, the caucus changes its leadership, or the voters change the composition of the chamber. Until one of those things happens, Pennsylvania will keep watching its residents — and its revenue — drive across the border.

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$GTBIF ( ▼ 5.15% ) Files With The Feds

Green Thumb Industries isn't waiting around to see how rescheduling plays out — it's already filing the paperwork.

The leading U.S. cannabis operator and owner of RISE Dispensaries announced it has submitted applications to the DEA to register certain state-licensed medical cannabis operations under the expedited registration pathway created by last week's rescheduling of medical marijuana to Schedule III. The move makes Green Thumb one of the first major MSOs to formally engage the new federal registration framework — a practical step that carries both symbolic and financial weight.

CEO Ben Kovler framed the filing as a natural next step: "Schedule III changes the future of medical cannabis in America, and Green Thumb is ready for what comes next." He emphasized that rescheduling "recognizes what millions of patients have known for years" and begins to address the punitive 280E tax treatment that has burdened compliant operators for over a decade.

The filing is strategically significant. Operators who submit DEA registration applications within 60 days of the rescheduling order's publication may continue operating under their existing state licenses during the review period, and the DEA has committed to processing early applications within six months. By moving quickly, Green Thumb positions itself at the front of the regulatory queue — and closer to the 280E tax relief that could materially improve its bottom line.

Green Thumb operates over 110 retail locations across 14 U.S. markets, serving both medical patients and adult-use consumers, with a branded product portfolio that includes RYTHM, incredibles, Dogwalkers, and Beboe, among others.

The company will release Q1 2026 financial results on May 6 — a call where investors will undoubtedly want to hear more about how DEA registration and 280E relief translate into actual dollars.

$TLRY ( ▼ 3.27% ) Launches More Non-Cannabis Beverages

Tilray's craft beer brand 10 Barrel Brewing is stepping outside the beer aisle — in two very different directions.

The company is launching Clean Slate and Salty Sips, two new additions to its ready-to-drink cocktail lineup that target opposite ends of the drinking occasion spectrum.

Clean Slate is 10 Barrel's first non-alcoholic functional beverage — a morning-after recovery drink infused with a Vitamin B blend, Lion's Mane for focus, Guarana and Ginseng for energy, Oregon Coast Sea Salt for hydration, and 113 mg of caffeine. Made with real grape juice, lime juice, and ginger extract, it's designed to get consumers "back in the saddle" without the booze.

Salty Sips goes the other direction — a vodka-based watermelon cocktail at just 5% ABV with only two grams of sugar, blended with real watermelon juice and a pinch of sea salt. It's squarely aimed at the better-for-you drinking trend that continues to reshape the beverage landscape.

Senior Brand Manager Moo Eakin said the launches reflect evolving consumer preferences: "We noticed a gap in our portfolio and saw that our consumers were changing."

Both products are available across the Pacific Northwest with plans to expand across the West Coast.

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House Passes Farm Bill Targeting Intoxicating Hemp, Senate Up Next | TTB Presented by Flowhub

✅ Farm Bill: The House version includes language targeting Delta-8, THCA, and synthetic cannabinoids by tightening hemp's legal definition — potentially reshaping the entire hemp-derived market.

Senate Watch: The bill moves to the Senate, where Senator Rand Paul is a key figure in determining whether the hemp provisions survive or get reworked.

Rescheduling: Medical cannabis is now Schedule III, and the DEA's June 29 hearing will determine whether all marijuana follows — a pivotal moment for federal policy.

Virginia: Governor Spanberger has 30 days to sign, veto, or allow the adult-use sales bill to become law after lawmakers rejected her proposed amendments.

Pennsylvania: Legalization momentum has stalled, with the path forward uncertain despite a strong existing medical market.

💸 The Tape

As federal rescheduling reshapes the domestic landscape and international medical cannabis markets expand rapidly across Germany, the UK, Australia, Poland, and beyond, the certification that separates contenders from pretenders in the global supply chain is European Union Good Manufacturing Practice compliance. It's the gold standard for pharmaceutical-grade cannabis production — and for American operators eyeing international revenue streams, understanding what it takes to earn and maintain it isn't optional. It's existential.

What EU GMP Actually Means

EU GMP certification is a regulatory framework governed by the European Medicines Agency (EMA) and enforced by national competent authorities — such as Germany's Federal Institute for Drugs and Medical Devices (BfArM) — that establishes the minimum standards a manufacturer must meet to produce pharmaceutical products for European markets. It covers every dimension of production: facility design, environmental controls, personnel qualifications, documentation, quality assurance, batch testing, supply chain integrity, and post-market surveillance.

For cannabis specifically, EU GMP certification means a cultivation or processing facility has demonstrated that it can consistently produce pharmaceutical-grade product — flower, extracts, or API — to the same standards applied to conventional pharmaceutical manufacturing. Every batch must be reproducible. Every process must be documented. Every deviation must be investigated, recorded, and resolved.

This isn't a checkbox exercise. It's a complete operational philosophy.

The Qualification Process

Earning EU GMP certification is a multi-year undertaking that typically unfolds across several phases.

It begins with facility design and buildout. The physical infrastructure must meet pharmaceutical-grade specifications from the ground up — or be retrofitted to comply. That includes cleanroom environments with defined air handling and particulate controls, segregated production zones to prevent cross-contamination, dedicated quality control laboratories, and validated environmental monitoring systems. HVAC, water purification, and waste management systems all require qualification protocols — Installation Qualification (IQ), Operational Qualification (OQ), and Performance Qualification (PQ) — before a single plant touches the facility.

Next comes the quality management system (QMS). EU GMP requires a fully documented QMS covering standard operating procedures (SOPs) for every process, from seed selection through final packaging. This includes batch production records, deviation and corrective action protocols (CAPA systems), change control procedures, supplier qualification programs, and stability testing regimes. The documentation burden alone can overwhelm organizations that aren't accustomed to pharmaceutical-level record-keeping.

Personnel qualifications are equally rigorous. EU GMP mandates a Qualified Person (QP) — an individual with specific academic credentials and professional experience in pharmaceutical manufacturing — who is personally responsible for certifying that each batch meets specifications before release. The QP role carries legal liability in many European jurisdictions, and finding qualified individuals with cannabis-specific experience remains a significant bottleneck.

Once the facility, systems, and personnel are in place, the operation must undergo a formal inspection by the relevant national authority — often involving multi-day site visits by regulatory auditors who examine everything from raw material intake procedures to finished product release protocols. Successful inspection results in a GMP certificate and listing in the EudraGMDP database, which European regulators and importers use to verify compliance.

The entire process — from initial gap assessment to certified production — typically takes 18 to 36 months and can cost millions of dollars in facility upgrades, consulting fees, personnel, and validation work.

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GACP: The On-Ramp

For operators not ready to commit to the full EU GMP journey, Good Agricultural and Collection Practices (GACP) certification offers a viable — and increasingly important — entry point into international markets.

GACP governs the cultivation and harvesting phase of cannabis production, establishing standards for growing conditions, pest management, harvesting procedures, drying, trimming, and initial post-harvest handling. It's the upstream complement to EU GMP, which covers processing, manufacturing, and distribution.

Here's where the distinction matters commercially: many international supply chains are structured so that GACP-certified cultivators supply raw material to EU GMP-certified processors who handle extraction, formulation, and packaging for distribution. This division of labor allows cultivation-focused operators to participate in international medical markets without building out full pharmaceutical manufacturing infrastructure.

Companies like Decibel Cannabis have leveraged this model effectively, onboarding 40+ GACP-certified cultivators into their supply network to feed EU GMP processing operations. For smaller or mid-sized operators, GACP certification represents a realistic path to international revenue — provided they can meet the quality and consistency standards that EU GMP processors require from their raw material suppliers.

GACP certification is faster and less capital-intensive than EU GMP, but it's not a participation trophy. Audits assess traceability systems, contamination controls, documentation practices, and the ability to produce consistent, specification-compliant biomass. Operators who treat GACP as merely a stepping stone rather than a rigorous standard in its own right will find themselves locked out of supply agreements with the EU GMP processors who ultimately control market access.

Maintaining the Standard

Earning EU GMP certification is hard. Keeping it may be harder.

Facilities are subject to periodic re-inspection — typically every two to three years — by national authorities, with the possibility of unannounced inspections at any time. Between formal audits, operators must maintain continuous compliance through internal audit programs, ongoing training, environmental monitoring, and regular review of quality metrics.

Any significant change to the facility, process, equipment, or supply chain triggers a change control procedure that must be documented, risk-assessed, and in some cases pre-approved by regulators. New cultivars, new extraction methods, new packaging formats — all require formal validation before entering commercial production.

The cost of maintaining EU GMP compliance is substantial and ongoing. Quality assurance teams, laboratory operations, stability testing programs, and regulatory affairs functions all represent permanent overhead. For cannabis companies accustomed to lean startup structures, the transition to pharmaceutical-grade operations requires a fundamental rethinking of organizational design and cost structure.

What This Means for U.S. MSOs

For the largest American operators — Curaleaf, Trulieve, Green Thumb, Verano — the path to international markets runs directly through EU GMP. And the rescheduling of medical cannabis to Schedule III makes that path more relevant than ever.

With the DEA now establishing a federal registration framework for medical cannabis operations, U.S. operators are entering an era where pharmaceutical-grade compliance isn't just an international aspiration — it's becoming a domestic expectation. Companies that invest in EU GMP or GACP certification now are building infrastructure that serves both international expansion and the evolving U.S. regulatory environment.

Some MSOs are already moving. Curaleaf's full acquisition of Four 20 Pharma in Germany gives it an EU GMP-certified platform in Europe's largest medical market. Aurora Cannabis recently acquired Safari Flower Company specifically for its EU GMP-certified facility in Ontario. Organigram's acquisition of Sanity Group provides a multi-country European footprint with established regulatory credentials.

For operators that haven't yet made international moves, the window is narrowing. European markets are consolidating around established suppliers with proven compliance track records. Building EU GMP capability from scratch takes years. Acquiring it is faster but increasingly expensive as the number of certified facilities with available capacity shrinks.

The Bottom Line

EU GMP certification isn't a marketing badge — it's a market access requirement. As international medical cannabis demand accelerates and U.S. federal policy aligns more closely with pharmaceutical regulation, the operators who invested in pharmaceutical-grade infrastructure early will own the supply chains that matter.

The rest will be watching from the outside.

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$CNTMF ( ▼ 1.96% ) Divests Texas

FLUENT Corp. is shedding assets — and this time it's Texas.

The vertically integrated cannabis company announced a definitive agreement to sell 100% of its Texas subsidiary, Cansortium Texas, to Legacy Therapeutics for $30 million. The deal includes FLUENT's Texas license, cultivation, manufacturing, and delivery operations in Schulenburg, as well as its Houston retail business. Payment is structured as $25 million at closing with two additional $2.5 million installments on the first and second anniversaries.

The move fits squarely into FLUENT's broader strategy of streamlining operations ahead of its pending all-stock acquisition by Vireo Growth, announced earlier this week. FLUENT's board had already approved an operating budget designed to divest non-core assets and optimize the business before the Vireo transaction closes. Texas, with its highly restrictive Compassionate Use Program and limited commercial upside relative to other markets, appears to have been identified as exactly the kind of asset better suited to a different operator's playbook.

Proceeds will primarily go toward paying down FLUENT's senior secured debt — a balance sheet cleanup that directly benefits the combined entity Vireo will eventually inherit.

The buyer is notable in its own right. Legacy Therapeutics is led by Randy J. Mire, Pharm.D, who describes himself as "the first pharmacist in the south to dispense medical marijuana." His pharmaceutical background and patient-access focus suggest Legacy intends to run the Texas operation with a clinical, compliance-first approach — a natural fit for a medical-only market.

Interim CEO David Vautrin expressed confidence in Legacy's ability to grow the platform FLUENT built for Texas Compassionate Use patients.

For FLUENT, the Texas exit is another piece of the pre-closing puzzle — simplifying the business, reducing debt, and preparing a cleaner package for its new home inside Vireo.

HHC Finds Itself On S1

The DEA is making it official: HHC is getting its own line item on the federal controlled substances list — and the agency wants everyone to know it was already illegal.

A final rule scheduled for publication Monday in the Federal Register establishes a separate Schedule I listing for hexahydrocannabinol (HHC) under the new DEA drug code 7220. The agency emphasized this is an administrative action, not a change in legal status — HHC has been controlled under drug code 7370 as a tetrahydrocannabinol since it first hit the market.

The practical effect is bureaucratic but meaningful: the dedicated listing allows the DEA to establish aggregate production quotas and grant manufacturing and procurement quotas to registered manufacturers — regulatory tools that require a substance-specific code.

More significant is the DEA's explicit position on sourcing. The agency stated that HHC is a synthetic substance, and that the 2018 Farm Bill's exemption for "tetrahydrocannabinols in hemp" applies only to those naturally occurring in the cannabis plant. THC compounds produced through chemical conversion — even from hemp-derived starting material — are not exempt and remain Schedule I.

That interpretation puts the DEA squarely at odds with the hemp industry's long-held argument that chemically converted cannabinoids derived from legal hemp fall under the Farm Bill's protections.

The rule follows a June 2025 UN notification adding HHC to the 1971 Convention on Psychotropic Substances. HHS confirmed there are no approved or investigational drug applications for the compound and agreed with the listing.

No public comment period. Effective immediately upon publication.

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From Policy To Execution: Cannabis Turns The Corner | TTB Weekly Recap

✅ In this week’s Trade To Black Weekly Recap presented by FRE Pouch, Shadd Dales breaks down the shift from cannabis policy to real-world execution.

The DEA has officially opened its registration portal for medical cannabis operators—meaning companies now have a 60-day window to apply for federal recognition. This follows last week’s move to Schedule III and marks the first real step in turning policy into action.

From a financial standpoint, the biggest impact is 280E. For years, operators have been taxed at extreme rates, limiting profitability and growth. That now starts to unwind on the medical side—and for major U.S. operators, that changes everything.

💸 The Tape

Verano Holdings entered 2026 with a stable quarter, a freshly restructured balance sheet, and a federal rescheduling order that CEO George Archos is calling "a game-changing catalyst." Whether this is the year it all comes together depends on whether the company can convert positioning into momentum.

The multi-state cannabis operator reported Q1 2026 revenue of $208 million, up 1% sequentially from Q4 2025 and down just 1% year-over-year from Q1 2025's $210 million. In a quarter where many operators saw more pronounced declines, Verano's top line held essentially flat — driven by strong retail performance that offset increased competition and promotional pressure in wholesale markets.

Stability isn't excitement. But in cannabis, stability is rarer than it should be.

The Margin Picture

Gross profit landed at $99 million, or 48% of revenue — up slightly from 47% a year ago but down from 51% in Q4 2025. The sequential decline reflects increased promotional activity, a dynamic that's playing out across the industry as operators compete for share in maturing markets. Year-over-year, gross margins actually improved by a percentage point, suggesting Verano's cultivation and processing operations are holding their own on the cost side.

SG&A expenses were flat at $86 million, or 41% of revenue. The slight year-over-year increase was driven by new store openings — an investment in future revenue, not a loss of discipline. Management is keeping overhead relatively contained even as the retail footprint expands.

Adjusted EBITDA came in at $49 million, or 24% of revenue. That's down from $54 million a year ago and $56 million in Q4, reflecting the combination of margin compression and steady operating costs. It's a solid number, but the trajectory suggests Verano needs either top-line acceleration or further cost optimization to push EBITDA back toward prior levels.

The Net Loss Question

Verano reported a net loss of $18 million, compared to a $12 million loss in Q1 2025. The widening loss was primarily driven by expenses associated with retiring the company's 2022 credit agreement — a one-time cost of transitioning to a cleaner capital structure. Excluding that refinancing noise, the operating business generated $13 million in income from operations, a meaningful improvement from Q4's negative $158 million (which was driven by impairments) and modestly below Q1 2025's $15 million.

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Cash Flow and Capital

Operating cash flow was a bright spot at $19 million, a significant improvement from just $2 million in Q1 2025. Capital expenditures totaled $15 million, with full-year guidance maintained at $30–$50 million. The company is investing — but selectively.

The bigger story on the capital front is the complete refinancing of Verano's debt structure during the quarter. The company closed a $195 million senior secured term loan, upsized its revolving credit facility to $100 million with an extended maturity to February 2029, and used the combined proceeds to pay off and terminate its legacy 2022 credit agreement. That's a meaningful deleveraging event that gives Verano cleaner debt terms and more financial flexibility heading into a period where capital deployment could be critical.

As of March 31, Verano held $74 million in cash, $395 million in current assets, $276 million in working capital, and $395 million in total debt net of issuance costs.

The Footprint

Verano's operational scale remains one of its primary competitive advantages. The company currently operates across 13 states with 162 dispensaries and 14 production facilities encompassing more than 1.1 million square feet of cultivation capacity.

Florida continues to be a strategic focus. During Q1, Verano opened MÜV Deltona and MÜV Lehigh Acres, and subsequently added MÜV Miramar Beach — the company's 85th Florida dispensary. In a limited-license state where scale directly correlates with market capture, Verano's Florida density is a durable competitive moat.

On the product side, the company launched Swift Lifts as a standalone brand in the fast-growing pre-roll category — a segment where consumer demand and margin opportunity continue to accelerate. Strengthening the branded product portfolio is essential for Verano's wholesale positioning, particularly as promotional intensity increases across the industry.

The Rescheduling Catalyst

Archos didn't mince words about the significance of last week's Schedule III rescheduling of state-licensed medical cannabis: "2026 has the potential to be a transformative year for Verano and the entire industry."

For a company of Verano's scale — operating medical cannabis programs across the majority of its 13-state footprint — the elimination of Section 280E on qualifying medical operations represents an immediate and substantial improvement to after-tax profitability. The company has been absorbing the same punitive tax treatment as every other MSO, unable to deduct ordinary business expenses on medical cannabis revenue that the federal government now acknowledges as legitimate.

The broader hearing on full rescheduling begins June 29, and Verano is positioning itself to "quickly capitalize" on any further developments. The company also announced a $20 million share repurchase authorization subsequent to quarter-end — a move that, combined with the refinanced balance sheet and rescheduling tailwinds, signals management's confidence in the road ahead.

The Bottom Line

Verano's Q1 isn't a quarter that rewrites the narrative — it's one that reinforces it. The company is generating nearly $50 million in quarterly adjusted EBITDA from a diversified, scaled platform with strong Florida positioning and a freshly restructured balance sheet. Revenue is stable. Cash flow is improving. And the most significant federal policy change in cannabis history just landed in the company's favor.

The challenge for Verano — as for all large MSOs — is converting the rescheduling moment into tangible financial improvement. 280E relief, better access to capital, and the normalization signal that Schedule III sends to institutional investors are all real catalysts. But they need to show up in the numbers, not just the press releases.

With 162 dispensaries, a $195 million term loan, and a federal government that finally acknowledges medical cannabis as legitimate, Verano has the infrastructure, the capital, and now the regulatory backdrop to make 2026 the inflection point it's been waiting for. The setup is there. Execution determines the rest. /Position

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$CURLF ( ▼ 13.35% ) Completes Buyout

The company announced the completion of its buyout of the remaining 45% stake in Four 20 Pharma GmbH, the fully EU-GMP and GDP licensed German producer and distributor of medical cannabis that Curaleaf first partnered with in 2022. The acquisition gives Curaleaf 100% ownership of one of Germany's most respected medical cannabis operations, with capabilities spanning cultivation, pharmaceutical-grade processing, and a comprehensive distribution network serving pharmacies, nursing homes, and research institutions across Germany and select European markets.

The strategic logic is vertical integration at a continental scale. With Four 20 Pharma fully consolidated, Curaleaf now controls a seed-to-patient supply chain running from owned cultivation sources in Portugal and Canada through to licensed distribution in Germany — Europe's largest and most dynamic medical cannabis market. That end-to-end ownership provides what the company calls "full oversight at every stage" and a quality guarantee that's increasingly important as European regulators tighten compliance expectations.

CEO Boris Jordan framed the deal as a cornerstone of Curaleaf's international ambitions: "Four 20 Pharma's leadership in production, compliance, and distribution allows us to expand patient access to medical cannabis while driving innovation across the international market."

Four 20 Pharma founder Torsten Greif echoed the enthusiasm, calling the full integration "an exciting new chapter" and highlighting the alignment between his company's focus on quality, compliance, and patient care and Curaleaf's broader mission.

The brand is already extending beyond German borders. Curaleaf has launched the Four 20 brand in both the United Kingdom and Poland, with plans to expand into additional international markets using what it describes as the "blueprint of quality and compliance" that built Four 20 Pharma's reputation in Germany.

This move comes at a moment when Curaleaf is simultaneously strengthening its domestic position — the company recently authorized an $83 million share buyback — while aggressively building international infrastructure. The combination of full European vertical integration, medical cannabis expertise, and a growing multi-country brand presence positions Curaleaf to compete for market share as Europe's regulatory frameworks continue to mature and patient populations expand.

For a company that has openly positioned itself as the future world's leading international cannabis company, full ownership of one of Germany's most trusted medical cannabis brands isn't just a strategic acquisition — it's a statement of intent.

$VREOF ( ▼ 9.24% ) Picks Up FL Asset

The multi-state operator announced a definitive agreement to acquire FLUENT Corp. in an all-stock transaction that would combine their Florida operations into a platform of approximately 74 dispensaries and roughly 144,000 square feet of combined cultivation and production canopy. In a limited-license state like Florida, that kind of scale is exceptionally difficult to replicate — which is precisely the point.

Under the terms of the deal, FLUENT shareholders will receive 0.0705359 of a Vireo subordinate voting share for each FLUENT share held. The transaction was unanimously approved by both boards, with ATB Cormark Capital Markets providing a fairness opinion confirming the consideration is fair to FLUENT shareholders.

What makes the deal particularly interesting is the pre-closing optimization. FLUENT's board approved an operating budget designed to streamline the business before handoff — including divesting non-core assets, implementing targeted cost reductions, and improving operational efficiency. Vireo CEO John Mazarakis was blunt about the appeal: "The business we receive at closing we believe will be positioned to generate meaningful cash flow before we apply a single Vireo synergy."

FLUENT generated approximately $71.5 million in Florida revenue in 2025. As part of the transaction, $30 million in outstanding debt under FLUENT's senior secured credit agreement will be converted to equity prior to closing — cleaning up the balance sheet and reducing leverage for the combined entity.

The deal is expected to close in Q4 2026, subject to regulatory approvals, court approval, and a shareholder vote requiring two-thirds approval from FLUENT shareholders. Key holders representing roughly 38.3% of outstanding shares have already signed voting support agreements.

For Vireo — which recently announced a California retail joint venture with Glass House — Florida now becomes the other anchor in an increasingly ambitious national footprint.

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The Cannabis Capital Markets Are Already Heating Up | TTB Presented by Flowhub

What we will cover:

✅ Hosts Anthony Varrell and Shadd Dales break down a packed day in cannabis news with special guest Adam Stettner, Founder and CEO of FundCanna, the leading non-dilutive capital provider to the cannabis industry.

Top of the docket: Vireo Growth's (CSE: VREO) all-stock acquisition of FLUENT Corp. (CSE: FNT.U), a deal that consolidates the Florida medical cannabis market and creates a combined operator with roughly 74 stores and 144,000 square feet of cultivation across the Sunshine State. The crew unpacks the deal terms, the Vireo strategic playbook, and what the transaction signals about MSO consolidation in a post-rescheduling environment.

Next up: Verano Holdings (Cboe: VRNO) Q1 2026 earnings. The team digs into Verano's $208 million revenue print, the $18 million net loss, the new $195 million senior secured term loan, the $20 million share repurchase authorization, and management's commentary on Section 280E tax relief following DOJ's Schedule III rescheduling order.

Plus: federal cannabis policy momentum on Capitol Hill. The MORE Act added five new House sponsors yesterday — Reps. Schakowsky, Torres, Boyle, Beyer, and Budzinski — bringing total cosponsors to 70 as legislative pressure builds for full marijuana descheduling.

Adam Stettner joins to discuss the cannabis lending landscape, how rescheduling is reshaping capital markets, what operators should be doing right now to position for DEA registration and the June 22 medical filing deadline, and where FundCanna sees the smartest opportunities for cannabis financing in 2026.

Tune in for sharp analysis, real numbers, and zero fluff.

💸 The Tape

Canada's most diversified cannabis and liquor conglomerate reported Q1 2026 results that reflect a company navigating genuine market headwinds while leaning heavily on its balance sheet as a strategic differentiator. Net revenue came in at $195.9 million, down 4.4% from the same period last year, with declines across all operating segments. Gross profit fell 6.8% to $52.8 million, and free cash flow was negative $7.6 million. The quarter was, by CEO Zach George's own admission, "particularly challenging."

But here's the thing about SNDL: the company is sitting on $213.4 million in unrestricted cash with zero debt as of March 31, and a total equity position of $623.6 million in cash, marketable securities, and investments. In an industry where balance sheet stress has become the norm, SNDL's financial position remains an outlier — and management clearly intends to use it.

The Segment Picture

The softness was broad-based, but not uniform.

Liquor Retail — SNDL's largest segment by revenue — posted $104.1 million in net revenue, down 4.9% year-over-year. Same-store sales declined 6.1%, reflecting persistent demand softness in Alberta's private liquor market. Gross margins improved slightly to 25.6%, helped by increased penetration of private-label offerings at accretive margins and cost optimization efforts. But the top-line decline was enough to push operating losses to $3.2 million, compared to a $2.4 million loss a year ago.

Cannabis Retail held up better, with $77.3 million in net revenue — essentially flat year-over-year. Same-store sales dipped 2.5%, partially offset by new store openings and Value Buds conversions, including the integration of five Cost Cannabis locations in Alberta and Saskatchewan. Gross margins expanded a full percentage point to 26.3%, driven by price increases, improved promotional effectiveness, and better product mix management. The segment remained operating income positive at $1.1 million, though one-time charges weighed on the bottom line.

Cannabis Operations was the weak spot. Revenue fell 14.2% to $29.4 million, driven by softening market demand, destocking activity, and disrupted business-to-business order phasing. Gross margins compressed sharply — from 26.8% to 19.7% — largely due to inventory adjustments and under-absorption from lower production volumes. One-time charges, including a write-down on the idle Stellarton facility, added further pressure. The segment's adjusted operating loss more than doubled to negative $6.9 million.

The one bright spot within Cannabis Operations: international sales doubled from $1.8 million to $3.5 million year-over-year. It's a small number in the context of SNDL's total revenue, but the growth trajectory mirrors the international momentum being captured by peers like Decibel and Organigram.

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The Investments Portfolio

SNDL's investments segment — anchored by its $395.4 million position in SunStream Bancorp — generated $2 million in operating income during the quarter, primarily from interest earned on cash holdings. The carrying value of the portfolio increased $12.5 million during the quarter, driven largely by USD/CAD exchange rate movements.

The two major restructuring situations within SunStream continue to inch toward resolution. The Parallel restructuring advanced after Florida approved the license transfer in early 2025 and a final litigation settlement was reached in December. SNDL expects the strict foreclosure process to close in Q3 2026. The Skymint situation remains more uncertain — the Michigan Supreme Court has agreed to hear oral arguments but has not reached a decision on the merits.

Management flagged last week's federal rescheduling order as directly relevant to the investments portfolio. The move of state-licensed medical cannabis to Schedule III — and the broader hearing on full rescheduling beginning June 29 — is expected to eliminate 280E tax burdens, improve access to capital, and strengthen the industry outlook. For SNDL, which holds significant U.S. exposure through SunStream's credit positions, the rescheduling could meaningfully improve the recovery prospects of its American cannabis investments.

Strategic Initiatives

Despite the top-line challenges, SNDL advanced several strategic priorities during the quarter. The company assumed exclusive Canadian production and commercialization of Jeeter, a leading U.S. cannabis brand, ahead of its official April 2026 launch. The Jeeter partnership positions SNDL in the premium pre-roll category — one of the fastest-growing segments in Canadian cannabis — with a brand that carries significant consumer recognition.

Management also outlined profit-enhancement initiatives expected to contribute approximately $20 million in incremental operating income over the remainder of 2026. That's a substantial figure relative to the company's current operating losses and suggests management is actively cutting costs and adjusting commercial execution rather than waiting for market conditions to improve.

On the capital return front, SNDL repurchased 4.5 million shares for cancellation during Q1, bringing total repurchases since Q4 2024 to 15.1 million shares. The board has renewed the buyback program, and management signaled continued willingness to deploy capital opportunistically.

The Outlook

George's commentary struck a balance between acknowledging current difficulties and positioning for the second half. He noted that the company anticipates improvement in the cannabis market later in the year while "proactively adjusting commercial execution and cost structure to reflect the reality of current market conditions."

The implicit message: SNDL isn't waiting for the market to rescue it. The $20 million profit-enhancement target, the Jeeter launch, continued international growth, and the approaching resolution of major U.S. investment restructurings all represent levers the company is actively pulling.

The Bottom Line

SNDL's Q1 was objectively soft. Revenue declined, margins compressed, and cash flow turned negative. In isolation, those are concerning trends for any business.

But context matters. SNDL operates from a position of financial strength that virtually no other cannabis company can match — $213 million in cash, no debt, and a diversified portfolio spanning Canadian retail, cannabis operations, and U.S. investments. In an industry where federal rescheduling is accelerating, market consolidation is inevitable, and distressed assets are becoming available at attractive prices, having a loaded balance sheet and operational discipline isn't just a nice-to-have — it's a competitive weapon.

The quarter was challenging. The positioning for what comes next is not.

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$VEXTF ( ▲ 4.14% ) Market Focus Is Clear

The U.S. cannabis operator reported fiscal 2025 results showing revenue of $51.4 million, up 43% year-over-year, with operating cash flow surging 256% to $11.7 million. Adjusted EBITDA came in at $10.9 million, and the company generated positive cash flow across all four quarters — a consistency that matters in an industry where many operators still struggle to get above the line.

The growth story is anchored in Ohio, where Vext expanded its retail footprint from two to five dispensaries during the year, with most locations performing above the state average. The company holds a path to the state dispensary cap of eight locations by early 2027, positioning it to capture sustained growth from Ohio's expanding adult-use market. A seventh dispensary license in Columbus was granted in March 2026, with buildout underway.

On the Arizona side, Vext is taking a different approach — pulling back. The company announced plans to exit cultivation at its Eloy facility and pursue a sale of the property, transitioning to a lean, retail-first model focused on its high-performing Phoenix dispensaries. The move is designed to reduce debt, free up capital, and redeploy resources toward Ohio's higher-return opportunities.

CEO Eric Offenberger framed it as disciplined capital allocation: "By refocusing on our high-performing Phoenix dispensaries and redeploying that capital into our Ohio expansion, we are aligning the business around our highest-return opportunities."

Q4 revenue of $13.7 million was up 35% year-over-year, though reported EBITDA was impacted by a $5 million non-cash impairment on one Columbus location. Management expects margins to improve as newer Ohio stores ramp and the retail base stabilizes.

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How TerrAscend is Preparing for Rescheduling | TTB Presented by Flowhub

What we will cover:

✅ In our latest Trade To Black podcast presented by Flowhub, hosts Shadd Dales and Anthony Varrell sit down with leadership from TerrAscend (TSX:TSND) to break down Q1 2026 preliminary earnings and what’s actually happening under the hood.

Chairman Jason Wild and CEO Ziad Ghanem join us to walk through the numbers following their preliminary Q1 release.

Revenue came in around $65.5M—slightly down quarter-over-quarter, but back to year-over-year growth. Margins? Still holding strong north of 52%. And maybe most important—this marks another quarter of positive operating cash flow in what continues to be a tough pricing environment across key markets like New Jersey.

💸 The Tape

For years, North Carolina has been the state where medical cannabis goes to die — not for lack of trying, but for lack of political will in the right chamber at the right time. Federal rescheduling may have just changed the equation.

Senate President Pro Tempore Phil Berger (R) told WRAL-TV last week that his caucus will discuss whether to revive medical cannabis legislation in light of the Trump administration's rescheduling order, which moved state-licensed medical marijuana from Schedule I to Schedule III of the Controlled Substances Act. It's a notable signal from a Republican leader in a state where the Senate has passed medical cannabis bills in multiple past sessions — only to watch them stall and die in the House of Representatives.

"We'll have a conversation within our caucus as to whether or not we do something, if they're interested in continuing to pursue that," Berger said.

That's not a commitment. But in North Carolina cannabis politics, it's more momentum than advocates have had in years.

The Federal Catalyst

The timing isn't coincidental. Last week's DEA final order didn't just reclassify medical cannabis — it sent a permission signal to state legislatures that have been hesitant to move on marijuana policy while the federal government maintained its hardline Schedule I stance. For conservative lawmakers in particular, the ability to point to a Republican administration rescheduling cannabis under President Trump's executive order removes what had been a convenient excuse for inaction.

North Carolina is exactly the kind of state where that signal matters most. The political dynamics aren't driven by opposition to cannabis in principle — polling consistently shows majority support for at least medical legalization — but by the institutional inertia of a legislature where leadership in one chamber has repeatedly declined to bring the issue to a vote. Federal movement gives Senate leaders new cover to push the conversation forward and puts additional pressure on House leadership to explain why they continue to block a measure their own colleagues across the rotunda have already endorsed.

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The Governor's Commission Adds Pressure

Federal rescheduling isn't the only force at work. Just weeks before the DEA order, a governor-appointed cannabis commission in North Carolina issued an interim report that went significantly further than most observers expected.

The North Carolina Advisory Council on Cannabis, convened by Governor Josh Stein (D) last year, recommended that the state move away from its criminalization-based approach and toward a system of "robust" regulations providing adults with legal access to THC products. The commission — comprised of legislators, law enforcement officials, agriculture stakeholders, health experts, tribal representatives, and advocates — didn't mince words about the current landscape.

The state's unregulated cannabis market "raises numerous concerns," the report says. Hemp-derived THC products are already widely available across North Carolina yet remain largely unregulated, while marijuana remains prohibited entirely — even for medical use. Governor Stein was blunter: "Our state's unregulated cannabis market today is the Wild West and is crying for order."

Perhaps most notably, the commission explicitly rejected a medical-only program as an effective interim step, recommending instead that North Carolina proceed directly to adult-use access with built-in protections for medical consumers. The panel argued that constructing separate regulatory frameworks for hemp and marijuana is unnecessary, advocating instead for molecule-based regulation focused on THC itself — regardless of whether it's derived from hemp or marijuana.

"The plant source is irrelevant and should not drive different treatment when the intoxicating compound is the same," the report states.

That's a remarkably progressive position for a commission operating in a state that hasn't even legalized medical cannabis. It also reflects the practical reality that North Carolina's unregulated hemp-derived THC market has already created a de facto cannabis economy — just one without age restrictions, potency limits, testing requirements, or consumer protections.

The House Problem

The persistent obstacle in North Carolina has never been the Senate. Medical cannabis bills have cleared that chamber repeatedly, with bipartisan support. The bottleneck has been the House of Representatives, where leadership has declined to advance the legislation.

Whether federal rescheduling changes that calculus remains an open question. Berger's comments suggest the Senate is ready to try again, but he acknowledged uncertainty about how House leadership would respond. The political dynamics within the House Republican caucus — where some members support medical cannabis while others remain opposed — have historically been enough to keep the issue off the floor.

But the ground has shifted in ways that make continued inaction harder to defend. Federal rescheduling removes the argument that state legalization conflicts with federal policy. The governor's commission provides a detailed, stakeholder-vetted framework for regulation. And the unregulated hemp market continues to grow, creating consumer safety concerns that do nothing to strengthen the case for prohibition.

There's also a precedent already operating within the state's borders. The Eastern Band of Cherokee Indians launched North Carolina's first marijuana dispensary in 2024 — a move that drew protests from certain Republican congressional lawmakers but demonstrated that legal cannabis sales can function in the state without the catastrophic consequences opponents have long predicted.

The Bigger Pattern

North Carolina's situation mirrors a pattern playing out across the South and in other traditionally conservative states. Federal rescheduling hasn't just changed the legal classification of medical cannabis — it's reframed the politics. When a Republican president and his Justice Department move marijuana out of Schedule I, it becomes significantly harder for Republican state legislators to argue that cannabis reform is a partisan or radical proposition.

States like North Carolina, Georgia, and Texas — where legislative support for medical cannabis exists but institutional resistance has blocked progress — are exactly where the federal signal is likely to have the most impact. The permission structure has changed.

Governor Stein's commission has a final report due by December 31, 2026. If the Senate moves a medical cannabis bill in the meantime, the pressure on the House to act will be more intense than at any point in the state's history.

North Carolina has been stuck at the starting line for years. Between federal rescheduling, the governor's commission, and renewed Senate interest, the state may finally be running out of reasons to stay there.

Source: Marijuana Moment

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$GLASF ( ▼ 2.21% ) Releases Preliminary Results

Glass House Brands delivered a mixed bag in its Q1 2026 preliminary results — beating on revenue and production volume while missing on the margin line that investors watch most closely.

The California-focused cannabis producer reported anticipated net revenues of $40 million, ahead of its own $39 million guidance and flat against Q4 2025, though down from $45 million in the year-ago quarter. Biomass production came in strong at 151,000 pounds, well above the guided 138,000 pounds — a signal that the company's massive cultivation infrastructure continues to perform.

The trouble sits in the middle of the income statement. Gross profit margin landed at 25%, meaningfully below the guided 29% and a sharp step down from 34% in Q4 2025 and 45% a year ago. That compression prompted Glass House to revise its full-year 2026 gross margin guidance downward to the mid-40% range from a prior target of approximately 48%.

The culprit appears to be production costs. The company now expects cost of production to come in at roughly $111 per pound for the full year, up from prior guidance of approximately $100. That delta flows directly into margins and ultimately into adjusted EBITDA, which Glass House now expects in the high $30 million range — down from the high $40 million range previously guided. Period-ending cash expectations have also been trimmed to the low $40 million range from $50 million.

There are bright spots worth noting. Full-year net revenue guidance of $235–$245 million remains intact, as does the average selling price target in the mid-$180s per pound and the biomass production target of approximately 1 million pounds. Management also reiterated that its long-term $95 per pound cost of production target remains achievable, with expectations to hit that level on a quarterly basis at some point this year.

Importantly, the guidance excludes several potential catalysts: hemp sales, product sales outside California, contributions from the recently announced retail joint venture with Vireo, and cash from outstanding warrant conversions. Each of those represents upside that isn't yet baked into the numbers.

For Glass House, the Q1 story is one of volume strength offset by cost headwinds — a familiar tension for agricultural-scale cannabis operators navigating California's relentless pricing environment. The production machine is humming. The margin recovery is the piece that still needs to catch up.

$HELP ( ▼ 7.71% ) Finds A Dance Partner

Helus Pharma is tapping into veteran networks to accelerate enrollment in one of the most closely watched psychedelic therapy trials in the country.

The clinical-stage pharmaceutical company announced a collaboration with TARA Mind and Veterans Exploring Treatment Solutions (VETS) to support recruitment for its PARADIGM HLP003 Phase 3 program for Major Depressive Disorder (MDD). HLP003 holds FDA Breakthrough Therapy Designation and is part of Helus Pharma's broader pipeline of novel serotonergic agonists (NSAs) targeting unmet needs in mental health.

The partnership aligns directly with President Trump's April 18, 2026 Executive Order, "Accelerating Medical Treatments for Serious Mental Illness," which emphasizes expanding clinical research participation and advancing innovative treatments for populations facing disproportionately high rates of depression, PTSD, and suicide — a description that fits the veteran community with painful precision.

Interim CEO Eric So said the collaboration will leverage TARA Mind and VETS' deep experience working within veteran communities to expand awareness of clinical research opportunities and drive recruitment for the Phase 3 program. Marcus Capone, Chairman and Co-Founder of TARA Mind, echoed the urgency, noting that partnerships like this "connect veterans to cutting-edge clinical opportunities" and ensure access to the latest mental health resources.

For Helus Pharma, the collaboration serves dual purposes: it addresses a practical clinical trial need — enrolling enough participants to power a Phase 3 study — while aligning the company with the federal government's stated priority of accelerating treatments for serious mental illness in underserved populations.

🗞️ The News

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Cannabis Sector Re-Rating Is Imminent | TTB Presented by Flowhub

What we will cover:

✅ The cannabis industry is entering a new era. In this episode of Trade To Black, host Shadd Dales and Anthony Varrell sit down with Seth Yakatan to break down the seismic shift underway following the DOJ's final ruling on cannabis rescheduling from Schedule I to Schedule III. We'll unpack what this landmark decision means for the re-rating of cannabis equities, operator margins, and the broader capital markets landscape.

Topics covered include:

-Section 280E tax relief and projected free cash flow impact for MSOs
-How institutional capital may finally enter the cannabis sector post-rescheduling
-Valuation multiples and why analysts are revisiting price targets across the industry
-Winners and losers among public cannabis operators, cultivators, and ancillary businesses
-The DEA hearing process, potential legal challenges, and remaining regulatory hurdles
-M&A activity, balance sheet implications, and uplisting pathways to major U.S. exchanges

💸 The Tape

For decades, the idea of registering a cannabis dispensary with the Drug Enforcement Administration would have sounded like the setup to a very bad joke — or a very effective sting operation. As of Wednesday morning, it's just paperwork.

The DEA will open its new Medical Marijuana Dispensary Registration Portal on April 29 at 9:00 a.m. Eastern, giving state-licensed medical cannabis operators a formal pathway to register with the federal government for the first time in history. The portal, hosted through the DEA's Diversion Control Division, represents one of the most tangible, ground-level consequences of last week's landmark rescheduling order that moved state-licensed medical marijuana from Schedule I to Schedule III of the Controlled Substances Act.

It's real. It's online. And it accepts PayPal.

How It Works

The registration process is structured across seven sections: personal and business information, activity type, state licenses, liability questions, compliance details, payment, and submission. Applicants will need to provide business and contact information, ownership details, tax identification or Social Security numbers, and documentation of their state medical marijuana licenses.

The application asks whether the business is requesting to handle marijuana, marijuana extract, or naturally derived delta-9-THC — and whether those substances are part of an FDA-approved product or covered under a state medical marijuana license. Notably, applicants must also disclose whether they handle or dispense medical marijuana, recreational marijuana, or both — a distinction that matters significantly under the current rescheduling framework, where only medical cannabis has been reclassified.

The compliance section digs into operational specifics: supplier information, standard operating procedures, and security measures including whether the facility has a vault, safe, secure storage room, access controls, alarm system, or onsite security personnel. It's the kind of regulatory infrastructure that signals the federal government is treating medical cannabis operators like what they are — legitimate pharmaceutical businesses — rather than criminal enterprises to be monitored from a distance.

Get Started Today

Once submitted, applicants receive a confirmation notice and email. The annual application fee is $794, nonrefundable, with PayPal as the only current payment method — though the DEA says additional payment options are expected in the coming weeks.

Why This Matters More Than It Looks

On the surface, a government registration portal is about as exciting as a DMV appointment. But in the context of cannabis, this is quietly revolutionary.

For the entire history of state-legal medical marijuana in the United States — spanning 40 states and two decades of legislative expansion — operators have existed in a regulatory no-man's-land. They held state licenses, paid state taxes, served patients, and built businesses, all while the federal government classified their core product alongside heroin and LSD. There was no federal registration pathway because, in the eyes of the DEA, there was no legitimate medical marijuana business to register.

That changed last week when Acting Attorney General Todd Blanche issued the final order rescheduling state-licensed medical cannabis to Schedule III. The order didn't just reclassify the substance — it established an expedited DEA registration pathway that integrates existing state licensing frameworks into the federal system. Operators who submit applications within 60 days of the order's publication — by June 22, 2026 — may continue operating under their state licenses while the DEA processes their registrations. The agency has committed to processing those early applications within six months.

The registration portal is the mechanism that makes all of that real. It's the front door to federal legitimacy.

The Compliance Signal

The portal's compliance requirements tell you a lot about how the federal government intends to treat Schedule III cannabis operations. The security questions — vaults, safes, access controls, alarm systems, onsite personnel — mirror the compliance frameworks applied to other Schedule III substances like ketamine and anabolic steroids. That's not a casual comparison. It means medical cannabis operators are being folded into an existing, well-understood regulatory architecture rather than having something entirely new built around them.

For operators who have spent years building seed-to-sale tracking systems, implementing state-mandated security protocols, and maintaining detailed compliance records, the federal requirements are unlikely to represent a dramatic operational lift. In many cases, state-level compliance standards — particularly in tightly regulated markets like Florida, Pennsylvania, and Ohio — already meet or exceed what the DEA is asking for.

That's the quiet advantage of the rescheduling order's design: by anchoring federal registration to existing state licensing infrastructure, it avoids creating a duplicative regulatory layer that could have paralyzed the industry. Operators don't need to rebuild from scratch. They need to file the paperwork.

What It Means for the Big Operators

For the largest multi-state operators — companies like Trulieve, Curaleaf, and Green Thumb Industries — the registration portal represents the administrative starting line for capturing the benefits of rescheduling. Federal registration is the prerequisite for 280E tax relief, which eliminates the punitive tax provision that has cost the industry an estimated $15 billion since 2018.

These companies operate medical programs across dozens of states. Each dispensary location, each cultivation facility, each processing operation that qualifies under a state medical license will need to register through the DEA portal. The scale of that administrative undertaking is significant — but so is the financial payoff on the other side.

Companies that move quickly to register within the 60-day window gain the dual benefit of continued operations under existing state licenses and positioning at the front of the DEA's processing queue. In an industry where timing has always been the difference between advantage and irrelevance, early movers will be rewarded.

The Bigger Picture

The DEA's registration portal is not legalization. It's not the end of the federal-state tension that has defined cannabis policy for a generation. Recreational marijuana remains Schedule I. The broader hearing on full rescheduling doesn't begin until June 29. And the IRS has yet to issue formal guidance on how 280E relief will be implemented in practice.

But sometimes the most significant shifts aren't the dramatic ones. They're the bureaucratic ones — the moments when a government agency builds a website, sets a fee, and says: come register your business. We're ready for you.

After fifty years of prohibition, the DEA just opened the door. The industry should walk through it.

📈 Dog Walkers

$TSNDF ( ▼ 7.93% ) Releases Preliminary Results

The North American cannabis operator released preliminary Q1 2026 results showing a return to year-over-year revenue growth from continuing operations, with net revenue of $65.5 million — up from $64.3 million in Q1 2025 and essentially flat against Q4 2025's $66.1 million. Gross profit margins came in at 52.8%, slightly ahead of the prior quarter's 52.1% and just below the year-ago period's 53.9%. G&A expenses held flat quarter-over-quarter, and the company generated positive cash flow from operations for the 15th consecutive quarter.

These aren't explosive numbers, but they reflect exactly the kind of disciplined, steady execution that positions a company to capitalize when the landscape shifts — and it just did.

Executive Chairman Jason Wild didn't bury the headline, citing last week's federal rescheduling of medical cannabis to Schedule III as a catalyst that has "the team more excited than ever about the future." For TerrAscend, which operates significant medical cannabis programs across its core markets, the elimination of the 280E tax burden on qualifying medical operations could meaningfully improve after-tax profitability without the company needing to change a single operational variable.

Fifteen straight quarters of positive operating cash flow is a track record that matters when the industry's biggest structural headwind suddenly starts lifting. Combined with what Wild described as a strong balance sheet and disciplined approach to capital allocation and M&A, TerrAscend is positioning itself as the kind of operator that can move decisively when opportunities emerge — rather than scrambling to stabilize while the market evolves around it.

Full Q1 details and forward outlook will come on the company's upcoming earnings call.

$MEDIF ( ▼ 4.89% ) Is Back?

The Canadian pharmaceutical cannabis company wasted no time responding to last week's DEA final order rescheduling state-licensed medical cannabis and FDA-approved cannabis products from Schedule I to Schedule III. And unlike operators positioning themselves for future opportunity, MediPharm's pitch is built on a track record that already exists.

The company has supplied product for over 10 active clinical trials — including a U.S. National Institutes of Health-funded study — and has completed multiple API and clinical trial material shipments to the United States. Those shipments were made under Schedule I conditions, meaning MediPharm navigated the most restrictive federal controls applied to any substance in American law. With Schedule III now in effect, that pathway becomes significantly less burdensome.

"MediPharm Labs is not approaching the U.S. market for the first time," said Interim CEO and CFO Greg Hunter. "Since 2023, we have shipped pharmaceutical-grade cannabis product into the United States multiple times under Schedule I conditions." He pointed to the company's established presence in some of the world's toughest regulatory markets — Germany, the United Kingdom, Australia, France, and Brazil — as proof of capability.

The strategic positioning is precise. MediPharm holds both a U.S. FDA site registration and a Health Canada Drug Establishment License (DEL), giving it the compliance infrastructure to serve as a compliant API and clinical trial supply partner for U.S. researchers and pharmaceutical companies. As rescheduling removes barriers that have historically limited full clinical trials — despite thousands of peer-reviewed cannabis studies being published annually — demand for standardized, pharmaceutical-grade cannabis supply is expected to accelerate.

There's also a capital markets angle. With Schedule I's "trafficking" classification removed for medical cannabis, institutional investors previously restricted by compliance policies may now be able to consider research-oriented cannabis companies. That could unlock a new tier of investment interest from pharmaceutical firms and funds that avoided the sector entirely under the old classification.

MediPharm isn't a dispensary operator or a consumer brand. It's a pharmaceutical manufacturing platform built for exactly the regulatory environment that just arrived. While the rest of the industry celebrates rescheduling as a milestone, MediPharm is treating it as a starting gun for a race it's already been running.

🗞️ The News

📺 YouTube

Options Trading Cannabis & Psychedelics + Farm Bill Debate | TTB Presented by Flowhub

What we will cover:

✅ In our latest Trade To Black podcast presented by Flowhub, hosts Shadd Dales and Anthony Varrell break down two conversations that are front and center right now: how to approach options trading in cannabis and psychedelic stocks, and the growing debate around the Farm Bill and hemp regulation.

In segment one, Matthew “WHIZ” Buckley — former Top Gun fighter pilot and founder of Top Gun Options — joins the show to talk specifically about options trading in catalyst-driven markets.

With psychedelics moving after President Trump’s executive order on research, and cannabis stocks still reacting to rescheduling, volatility is back across both sectors. WHIZ walks through how traders should be thinking in these environments, what tends to get overlooked, and how to better prepare when markets start moving quickly around policy-driven headlines.

In segment two, Michael Bronstein, President of the American Trade Association for Cannabis & Hemp, joins for the Insider’s Edge.

We get into what’s happening right now with the Farm Bill conversation, the ongoing debate around hemp-derived THC products, and why this is becoming one of the most important policy battles in the industry. We also touch on Pennsylvania’s adult-use push and where things stand in Virginia after lawmakers rejected Governor Abigail Spanberger’s proposed changes.

💸 The Tape

For years, the biggest U.S. cannabis operators have been building real businesses while paying (or not paying) taxes as though they were running criminal enterprises. As of last week, that contradiction started to unravel.

On April 22, 2026, the Department of Justice and the DEA issued a final order moving state-licensed medical marijuana and FDA-approved cannabis products from Schedule I to Schedule III of the Controlled Substances Act — the first meaningful shift in federal cannabis classification in over five decades. The order, issued under authority tied to the UN Single Convention on Narcotic Drugs, delivers on President Trump's December 2025 executive order directing the Attorney General to expedite rescheduling. A broader administrative hearing on reclassifying all marijuana to Schedule III is set to begin June 29, 2026.

The implications are enormous — and for the three largest multi-state operators in the country, Curaleaf, Green Thumb Industries (GTI), and Trulieve, the impact could be transformational.

The 280E Albatross, Lifted

The single most consequential effect of medical marijuana's move to Schedule III is the elimination of Section 280E of the Internal Revenue Code for qualifying operators. Enacted in 1982 to prevent drug traffickers from deducting business expenses, 280E has been weaponized against state-legal cannabis companies for years, prohibiting them from claiming the ordinary deductions — rent, payroll, marketing, administrative costs — that every other American business takes for granted.

The result has been effective tax rates that, according to Whitney Economics, have exceeded 70% for some operators. Since 2018, the cannabis industry has paid an estimated $15 billion in excess 280E-related taxes.

For the big three MSOs, the math is staggering.

Trulieve generated $1.18 billion in revenue and $427 million in adjusted EBITDA in 2025, with a 36% EBITDA margin and $228.6 million in free cash flow. Yet the company still carries an estimated $668 million in uncertain 280E tax liabilities. CEO Kim Rivers called the rescheduling order the "first ever meaningful policy shift related to cannabis in the history of America," noting that it removes the punitive tax burden, opens a pathway for DEA registration, and enables research using actual state-available medical cannabis products. At roughly 4x adjusted EBITDA, Trulieve's valuation has been compressed by the very regulatory uncertainty that just began to clear.

Get Started Today

Green Thumb Industries — fresh off authorizing a $150 million share buyback funded entirely from operating cash flow — has been vocal about 280E's distortive effect. CEO Ben Kovler has said the company's stock price "continues to serve as a barometer for federal action." The elimination of 280E would immediately improve GTI's after-tax margins and free up capital that has been absorbed by a tax code never intended to apply to legitimate, state-licensed businesses. With a disciplined operating model and one of the strongest balance sheets in U.S. cannabis, GTI is positioned to compound the benefit of 280E relief faster than most peers.

Curaleaf, the largest cannabis company in the world by revenue, recently authorized an $83 million buyback of its own — a signal of confidence that takes on new significance in a post-280E world. Chairman and CEO Boris Jordan has consistently framed the company's strategy around being ready to scale when federal policy catches up. That moment has arrived, at least for the medical side of the business.

What This Means — And What It Doesn't

It's important to be precise about scope. The rescheduling applies specifically to FDA-approved marijuana products and marijuana subject to a qualifying state medical license. Recreational marijuana — even in states where it's legal — remains Schedule I. That means operators with dual medical and recreational licenses face an immediate complexity: 280E relief applies to their medical operations but not their adult-use sales. How the IRS interprets and implements that distinction will matter enormously, and formal guidance is still pending.

There's also a timing question. Tax advisors are watching closely to determine whether 280E relief applies immediately, retroactively to the beginning of 2026, or only to tax years beginning after the rescheduling takes effect. The difference could represent hundreds of millions of dollars in aggregate across the industry.

But even with those caveats, the directional shift is undeniable. The three largest MSOs all operate significant medical cannabis programs across multiple states. Trulieve's cornerstone markets — Florida, Pennsylvania, Ohio, and Arizona — are anchored by medical operations. GTI's RISE Dispensaries serve medical patients across its footprint. Curaleaf operates medical programs in the majority of its markets. For all three, the medical business isn't a sidecar — it's a core revenue driver that just became dramatically more profitable on an after-tax basis.

Beyond Taxes: The Normalization Signal

The financial impact of 280E relief is the headline, but the broader signal may be equally important. The federal government acknowledging marijuana's medical value could serve as a permissive signal to state-level lawmakers currently weighing cannabis legislation. It lowers the perceived risk for institutional investors, lenders, and corporate partners who have historically avoided cannabis due to federal classification concerns.

For companies like Curaleaf, GTI, and Trulieve — all of which have been navigating debt markets, refinancing facilities, and managing balance sheets under the shadow of Schedule I — the reclassification opens doors that have been locked for years. Better access to capital, more favorable borrowing terms, and the potential for eventual uplisting to major U.S. stock exchanges all become more plausible in a Schedule III world.

What Comes Next

The June 29 DEA hearing on broader rescheduling will determine whether recreational cannabis also moves to Schedule III — a development that would extend 280E relief across the entire industry and resolve the medical-versus-recreational ambiguity. Legal challenges are expected, and the IRS still needs to issue formal guidance on tax treatment.

But the trajectory is set. The three companies that have spent the longest building scale, generating cash flow, and surviving a tax regime designed to destroy them are now positioned to reap the most from its dismantling. Curaleaf, GTI, and Trulieve didn't just survive 280E — they built industry-leading businesses in spite of it.

📈 Dog Walkers

$CMND ( ▼ 1.63% ) Is Up

Clearmind Medicine is eyeing one of the FDA's most coveted fast-track labels for its lead drug candidate — and the timing couldn't be better.

The clinical-stage biotech announced it is evaluating CMND-100 (MEAI) for eligibility for the FDA's Breakthrough Therapy Designation (BTD), a classification reserved for drugs targeting serious or life-threatening conditions where preliminary clinical evidence suggests substantial improvement over existing treatments.

The case isn't hard to make on paper. CMND-100 is a non-hallucinogenic, neuroplastogen-derived oral therapy for Alcohol Use Disorder (AUD) — a condition affecting millions worldwide with notoriously limited treatment options. The company's ongoing Phase I/IIa trial has already delivered encouraging results, including a clean safety profile across escalating dose cohorts with no serious adverse events.

CEO Dr. Adi Zuloff-Shani pointed to both the clinical data and the shifting regulatory landscape as catalysts. The recent Executive Order signed by President Trump — which accelerates FDA review processes for psychedelic and neuroplastogen therapies carrying Breakthrough designations — adds a meaningful tailwind. If CMND-100 secures BTD status, it would benefit from intensified FDA guidance, rolling review, and a potentially faster path to approval.

An important caveat: Clearmind has not yet submitted a BTD request, and the FDA has not granted the designation. The company is currently assessing whether its existing data package meets the rigorous threshold. This is an evaluation, not a confirmation — a distinction worth noting in a sector where premature celebrations are common.

Still, the strategic logic is sound. A Breakthrough designation would distinguish CMND-100 from an increasingly crowded psychedelic therapeutics field and signal to investors and partners that the FDA sees something genuinely differentiated in Clearmind's non-hallucinogenic approach to treating addiction. 

🗞️ The News

📺 YouTube

Cannabis Rescheduling Is Now Official in America | TTB Weekly Recap

What we will cover:

✅ In the latest Trade To Black Weekly Recap presented by FRE Pouch, Shadd Dales breaks down one of the most important weeks the cannabis industry has seen in decades.

The headline—cannabis rescheduling is now official. The Department of Justice, led by Acting Attorney General Todd Blanche, has moved certain cannabis products from Schedule I to Schedule III. It’s a major shift—but not across the board. Medical cannabis operators stand to benefit immediately, while adult-use remains federally illegal.

From there, we shift to Virginia, where Governor Abigail Spanberger now faces a key decision that could determine whether adult-use cannabis sales launch in 2027—or get delayed again.

We also look at federal momentum, with Hakeem Jeffries saying the votes exist for reform, while Cory Booker continues pushing for full legalization beyond rescheduling.

💸 The Tape

After decades of federal foot-dragging, false starts, and enough political hedging to fill a dispensary's display case, the Department of Justice on April 23 did the thing everyone in the cannabis industry has been waiting on: it formally rescheduled state-licensed medical marijuana from Schedule I to Schedule III of the Controlled Substances Act. Acting Attorney General Todd Blanche signed the final order the day prior, making April 22, 2026 the effective date of the most consequential federal cannabis action in more than half a century.

It is historic. It is also considerably narrower than the industry's most optimistic readers had hoped. Before anyone orders the "280E is Dead" sheet cake, here is what the order actually does, what it carefully does not do, and what it means for companies currently holding a state medical license and a rapidly ticking clock.

The Two Categories That Move

Blanche's order reschedules two — and only two — buckets of product to Schedule III: FDA-approved drug products containing marijuana, and marijuana subject to a qualifying state medical marijuana license. That second category is the one that matters for most operators, and it covers marijuana as defined in the CSA, marijuana extracts, and naturally derived delta-9 THC, but only when attached to a valid state medical license.

Everything else stays exactly where it was. Adult-use cannabis remains Schedule I, even when sold under a perfectly legal state recreational program. Bulk inputs, extracts bound for FDA-approved products, and synthetically derived THC (including the gray-market delta-10 that has kept compliance officers awake at night) also stay put. Hemp is unaffected. Marinol and Syndros keep their existing schedules. The order is surgical, and the administration chose the surgical instrument on purpose.

The Clever Legal Vehicle

Rather than completing the Biden-era notice-and-comment rulemaking — which the DEA has now formally withdrawn — Blanche invoked the Attorney General's authority to implement U.S. obligations under the Single Convention on Narcotic Drugs. Translation: the administration bypassed the administrative traffic jam by taking a treaty-compliance side street. The trade-off for speed is scope. Because the Single Convention limits cannabis to medical and scientific purposes, the pathway Blanche chose could only legally reach, well, medical and scientific uses. Adult-use operators who expected this order to rain down on them will need to keep watching the skies. A separate expedited DEA administrative hearing on broader rescheduling begins June 29, 2026, with the process required to conclude by July 15.

Get Started Today

The Expedited DEA Registration Pathway

This is the operational core for state medical operators, and the timeline is short. State medical marijuana licensees may file for DEA registration using their existing state credentials as conclusive evidence of state-law authorization. The DEA is required to grant registration unless doing so conflicts with the public interest or the Single Convention.

Operators who apply within 60 days of publication — by Monday, June 22, 2026 — may continue operating under their state licenses while DEA review is pending. DEA has committed to processing those early applications within six months. Miss the window and the safe harbor is gone. This is the date to circle, underline, and tape to the CFO's monitor.

The federalism concessions are genuinely favorable. State-required records, certifications, labeling, packaging, disposal, and physical-security standards will be accepted "to the maximum extent permissible," meaning most operators will not have to rebuild compliance infrastructure from scratch. One important wrinkle: a DEA registration automatically suspends if the underlying state license lapses. Federal and state status are now joined at the hip.

The Single Convention's Weirdest Plot Twist

In what will surely become the industry's favorite cocktail-party anecdote, registered manufacturers must establish a nominal purchase price for their marijuana crops and then sell those crops to the DEA at that price, plus an administrative fee, with the DEA immediately reselling them back. The maneuver exists solely to satisfy the Single Convention's requirement that a government agency serve as the exclusive purchaser of cannabis production. Until the paper transaction closes, crops must sit in a DEA-accessible facility. Expect first-mover manufacturers to set the industry template on documentation, timing, and accounting treatment — and expect further sub-regulatory guidance from DEA to follow.

The Tax Headline: 280E, Largely Vanquished

The commercial prize is IRC Section 280E, which has for years disallowed ordinary business-expense deductions for entities trafficking in Schedule I or II substances. Because qualifying medical operations are now Schedule III, state-licensed medical operators are out from under 280E's shadow, effective with the 2026 tax year.

Blanche went further, expressly encouraging the Treasury Secretary to consider retrospective relief for prior years in which an operator held a qualifying state medical license. That encouragement is not a guarantee — Treasury will need to act, and any retrospective relief will almost certainly attract IRS rulemaking and possibly litigation — but for medical operators who have been effectively taxed at punitive federal rates, it is the most meaningful signal in a generation. Hybrid operators (holding both medical and adult-use licenses at the same dispensary) face a genuinely unresolved question about how to allocate revenue and deductions between the two regimes, and should assume the IRS will take its time answering.

What This Means for Cannabis Companies Right Now

Three things. First, file the DEA registration now, or at least start the paperwork this week. Sixty days is not a lot of time for multi-state operators with complicated entity structures, and the safe harbor is too valuable to fumble. Second, call your tax advisor before your next quarterly close. The 280E treatment shift is immediate for medical operators and will change effective tax rates materially; the retrospective question is worth modeling both ways. Third, do not confuse this order with legalization. Adult-use operators remain Schedule I, hybrid operators remain complicated, and the upstream supply chain for FDA-approved products stays in Schedule I limbo. The capital-markets narrative will likely bifurcate accordingly — medical-only operators look relatively more attractive overnight, and expect some creative corporate restructuring as the year progresses.

The June 29 hearing is the next inflection. Whatever comes of it, today's order is a real, durable, and long-overdue shift. It is not the finish line. It is, at long last, a starting gun.

📈 Dog Walkers

$GTBIF ( ▼ 5.15% ) Sizes Up The Share Buyback Program

Green Thumb Industries isn't just talking about its stock being undervalued — it's buying it back at an accelerating pace.

The leading U.S. cannabis operator and owner of RISE Dispensaries announced a $100 million expansion of its existing share repurchase program, bringing the total authorization to $150 million. Since the program launched on September 23, 2025, Green Thumb has already repurchased approximately 7.5 million shares for roughly $43.4 million — with $33 million of that deployed in Q1 2026 alone.

That acceleration tells you something about management's conviction. When a company triples its buyback pace and then adds another $100 million in capacity, it's not a passive signal — it's a statement.

CEO Ben Kovler made it explicit: "We have built a strong business, and we do not believe our current share price fully reflects that value." The additional authorization gives the company "greater flexibility to continue deploying capital opportunistically."

The mechanics are straightforward. Purchases can be made through the Canadian Securities Exchange, the OTCQX, or alternative trading systems, with all acquired shares returned to treasury and cancelled. The program runs through September 22, 2026, and Green Thumb says it does not expect to incur debt to fund the buybacks — meaning this is coming straight from operating cash flow.

The company retains full discretion on timing and volume, and can suspend or terminate purchases if management identifies better uses of capital. But the trajectory so far suggests the opposite: Green Thumb views its own stock as one of the best investments available.

In a cannabis sector where most operators are still managing balance sheet stress, a company with the cash flow to fund a $150 million buyback without leverage stands in a category of its own.

$HITI ( ▲ 0.42% ) Launches Stock Manipulation Investigation

The Canadian cannabis retailer issued an unusually direct statement addressing what it believes may be manipulative trading activity in its common shares — and announced plans to bring in forensic investigators to prove it.

The company says it has observed a recurring pattern over more than ten consecutive quarters: High Tide delivers strong earnings that beat analyst expectations, the stock reacts positively in after-hours trading, and then the closing price the following regular session ends up lower than the prior day's close. Every time. For over two years.

Management and the board have been monitoring trading data, position reports, and related activity alongside the company's market maker, and have concluded they have "reasonable grounds to believe that certain trading activity may not reflect normal market forces" and could be "contrary to applicable securities laws in Canada and the United States."

The response is aggressive. High Tide intends to retain forensic investigators and securities market specialists to conduct an independent review focused on trading around earnings releases and other material disclosure events. The findings will be delivered to regulatory authorities in both countries, including securities commissions and self-regulatory organizations.

The company also invited shareholders and market participants with relevant information to reach out at ir@hightideinc.com.

It's rare for a public cannabis company to publicly accuse unnamed parties of potential market manipulation and announce an investigation. Whether the probe yields regulatory action or simply puts bad actors on notice, High Tide is making clear it won't absorb the pattern silently any longer.

🗞️ The News

📺 YouTube

Schedule III Is Official — What Comes Next? | TTB Presented by Flowhub

What we will cover:

✅ In our latest Trade To Black podcast, hosts Shadd Dales and Anthony Varrell break down what could be the biggest moment the U.S. cannabis industry has ever seen.

The Department of Justice has officially finalized the move to reschedule medical cannabis to Schedule III—and if you’ve been following this space, you already know… this changes everything.

We get into what this actually means right now. Not the hype—the real impact. Taxes, 280E, capital, valuations, and how operators should be thinking about the next 6–12 months.

We’ve got a strong lineup on this one. Boris Jordan (CURLF), George Archos and Aaron Miles (VRNOF), Anthony Coniglio (NLCP), Adam Stettner, and Michael Bronstein all weighing in.

You’ll hear different perspectives on what happens next—from how fast 280E relief actually kicks in, to whether this finally opens the door to institutional capital and banking.

Bottom line: this isn’t the finish line. But it’s a major step—and probably the clearest signal yet that federal reform is actually moving.

If you’re following cannabis stocks, policy, or the business side of this industry, this is one to watch closely.

💸 The Tape

Virginia's path to legal cannabis sales just took its most dramatic turn yet — and the outcome now rests entirely in the hands of a governor whose own party just told her no.

On Wednesday, lawmakers in the reconvened session voted to reject Governor Abigail Spanberger's proposed amendments to the state's recreational marijuana sales legislation. The House of Delegates declined to consider the changes by voice vote, and the Senate followed with a 21-18 vote against. The original bills — SB 542 from Sen. Lashrecse Aird (D) and HB 642 from Del. Paul Krizek (D) — now head back to Spanberger's desk in their unaltered form, giving her 30 days to sign them, veto them, or allow them to become law without her signature.

The stakes couldn't be higher. If Spanberger vetoes, Virginia's cannabis commerce framework dies, and lawmakers would have to start over with new legislation in the 2027 session. If she signs or steps aside, the state launches legal sales on January 1, 2027.

What the Governor Wanted — And Why Lawmakers Said No

Spanberger's proposed amendments weren't minor tweaks. They represented a fundamental reorientation of the legislation's philosophy — and that's exactly what prompted the backlash.

The governor sought to delay the sales launch from January 1, 2027 to July 1, 2027, increase the excise tax from 6% to 8% starting in 2029, reduce the possession limit from the legislature's proposed 2.5 ounces to 2 ounces, and — most controversially — introduce a slate of new criminal penalties that reform advocates said would undo years of decriminalization progress.

Under Spanberger's proposal, public marijuana use would become a Class 4 criminal misdemeanor rather than the current civil violation carrying a $25 fine. Possession by anyone under 21 would be elevated to a Class 1 misdemeanor with a mandatory minimum $500 fine or 50 hours of community service, plus suspension of driving privileges for at least six months. And illegal sale or distribution of 50 pounds or more would be classified as a Class 2 felony punishable by life in prison.

The governor also proposed eliminating the Cannabis Equity Reinvestment Fund entirely and redirecting all revenue into the general fund with broad earmarks. She wanted to remove language directing a legislative commission to study on-site consumption licenses and microbusiness event permits. And she sought to funnel the equity and reinvestment provisions through a vague regulatory process rather than the specific framework lawmakers had carefully constructed.

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The Sponsors Push Back

Both bill sponsors made clear before the vote that they wanted their colleagues to reject the amendments — even at the risk of a veto.

Sen. Aird said the governor's substitute "moves Virginia in the wrong direction and disregards years of data-driven, bipartisan work." She urged Spanberger to reconsider provisions that "reintroduce punitive measures undermining the intent of legalization" and "remove essential supports for impact licensees."

Del. Krizek was more pointed, noting that the legislature had taken bipartisan steps years earlier to end racially discriminatory marijuana policing in Virginia. The governor's amendments, he said — "probably not intentionally, as she has not been involved in this years-long process" — would "repeal a number of those decriminalization laws" and undermine a "thorough, thoughtful, balanced process" built on community and stakeholder engagement.

"When we legalized cannabis it was with a recognition of the disproportionate harm caused by the war on cannabis, particularly among Black families," Krizek said. "This bill was intentional in recognizing that, but much of that intentionality is lost with these many amendments."

JM Pedini of Virginia NORML was blunter: the governor's substitute "would have reversed years of progress" and resulted in "a return to racially discriminatory marijuana policing across the commonwealth."

The Resentencing Fight

The cannabis sales bill wasn't the only measure where lawmakers pushed back. The legislature also rejected Spanberger's amendments to separate legislation — HB 26 from Del. Rozia Henson Jr. (D) and companion bill SB 62 from Senate President Pro Tem Louise Lucas (D) — that would provide resentencing relief for people incarcerated or on supervision for certain marijuana felonies.

As passed by lawmakers, the bills create an automatic hearing process for affected individuals. Spanberger's amendment would have required those individuals to proactively file petitions instead — a procedural barrier that advocates argued would effectively deny relief to the people least equipped to navigate the legal system.

Lawmakers sent the original resentencing bills back to the governor alongside the sales legislation.

What Did Pass

Not everything was contentious. Lawmakers approved Spanberger's minor amendments to HB 391, which clarifies regulations for marijuana delivery services and cannabis product labeling, and to SB 543, concerning enforcement against illegal cannabis product sales. The governor also signed several other reform bills this month, including measures protecting parental rights of cannabis consumers and allowing medical marijuana access in hospitals.

The 30-Day Clock

The calculus now shifts entirely to Spanberger. She has three options: sign the original legislation, veto it, or let it become law without her signature.

A veto would be politically risky. Her own party's legislators overwhelmingly supported the original framework, and vetoing cannabis reform after five years of legislative effort — during which former Governor Youngkin already vetoed sales bills twice — would invite comparisons she presumably doesn't want. It would also leave Virginia's gray market operating unchecked for at least another year, undermining the very public safety concerns Spanberger cited as justification for her amendments.

Signing the bill as-is would require walking back her own proposals — an uncomfortable but increasingly common political maneuver when the alternative is worse.

The middle path — allowing the bill to become law without her signature — lets Spanberger signal disagreement without killing the legislation. It's the political equivalent of a disapproving nod, and it may be the most likely outcome.

Whatever she decides, the clock is ticking. Virginia has waited five years for a legal marketplace. The answer arrives within 30 days.

Original Content: Marijuana Moment

📈 Dog Walkers

$AAWH ( ▼ 17.34% ) Opens First Of Many

The cannabis industry talks a lot about social equity. East Coasting is what it looks like when the talk becomes a storefront.

Ascend Wellness Holdings announced the opening of East Coasting, a new adult-use dispensary at 178 NJ-35 in Eatontown, New Jersey, operated independently by Kyle Page with operational support from Ascend through a partnership agreement designed to expand ownership opportunities for diversely-owned businesses under New Jersey law.

Page's path to dispensary ownership is the kind of story the industry needs more of. His journey was shaped by the unequal enforcement of cannabis laws in Black communities and the long-term barriers created by a cannabis-related conviction. After entering the legal industry in 2022, Page was hired through Ascend's program for returning citizens, working his way from cultivation associate to supervisor before pursuing retail and operational training to prepare for ownership.

Along the way, he became an advocate at expungement clinics and community events, supporting others navigating similar barriers. Despite regulatory challenges tied to his past conviction, Page persisted — and now holds the keys to his own operation.

"This is about building a dispensary that people are proud to visit," Page said, describing East Coasting as a space rooted in community, opportunity, and progress — "a brand that stands for inclusion, advocacy, and hope for what this industry can become."

Danielle Drummond, Ascend's VP of Social Equity, called Page's story a reflection of "both the harm caused by prohibition and the promise of a more equitable cannabis industry."

The dispensary soft-opened with a grand opening celebration planned for April 24, featuring giveaways, promotions, and in-store activations. East Coasting operates daily from 9 AM to 9 PM.

From conviction to ownership. That's equity in action, not just on paper.

$IXHL ( ▲ 2.06% ) Furthers Psychedelic Arm

A White House Executive Order on psychedelic therapies just gave companies like Incannex Healthcare a significant tailwind.

President Trump signed an order on April 18 titled "Accelerating Medical Treatments for Serious Mental Illness," directing the FDA to prioritize review of psychedelic compounds with Breakthrough Therapy designations, create Right to Try pathways for investigational psychedelics, and initiate DEA rescheduling upon successful Phase 3 completion. For the psychedelic therapeutics sector, it's the most concrete federal support the space has seen.

Incannex is positioning its lead candidate, PSX-001 — an oral, fixed-dose synthetic psilocybin formulation for Generalized Anxiety Disorder (GAD) — as a direct beneficiary. The company's completed Phase 2 trial produced striking results: a 12.8-point reduction in HAM-A anxiety scores versus 3.6 for placebo, a 44% clinically meaningful response rate (four times placebo), and a 27% remission rate sustained through 11 weeks — five times the placebo rate. Notably, there were no serious adverse events across 73 patients.

CEO Joel Latham called the Executive Order "a meaningful step toward ensuring that novel, evidence-based therapies can reach patients without unnecessary delay," noting that Incannex holds an active U.S. IND, has over $70 million in cash with no debt, and considers its Phase 2 data "among the strongest in the oral psilocybin space."

GAD affects an estimated 280 million people globally and 6.8 million in the U.S., with limited options for patients who fail first-line treatments. For Incannex, the regulatory winds just shifted meaningfully in its favor.

🗞️ The News

📺 YouTube

Washington Post Reports Cannabis Rescheduling Could Be Finalized | TTB Presented by Flowhub

What we will cover:

✅ In the latest Trade To Black livestream presented by Flowhub, Shadd Dales and Anthony Varrell break down late-breaking news just reported by the Washington Post — and the question everyone’s asking right now:

Is this finally it for cannabis rescheduling?

In segment one, investor Marc Cohodes joins the show to react to the Washington Post report suggesting rescheduling could be nearing the finish line. We get into what this actually means, how seriously to take it, and whether this is real progress.

Then in segment two, the focus shifts to something just as important—how to be prepared if this does move forward.

Shadd tees up what happened back on December 18 when Donald Trump signed the executive order—how the sector got aggressively shorted, and how a lot of retail investors holding short-dated options got caught on the wrong side of that move.

Noah Hamman, CEO from AdvisorShares Pure Cannabis ETF (NYSE:ARCA) join us to break down the price action, and what traders should be thinking about this time around.

Then in segment three, Kyle Sherman joins to give his take on the Axios report, plus early 4/20 data. We get into what the numbers are showing so far and what operators should be paying attention to coming out of one of the biggest days of the year.

Three segments. One question:

Are we actually close this time?

💸 The Tape

The votes are there. The will to hold the vote is not.

That's the core frustration House Minority Leader Hakeem Jeffries (D-NY) laid bare on Monday — fittingly, on 4/20 — when he told reporters that enough bipartisan support exists in the House to pass comprehensive federal marijuana reform, if only Republican leadership would allow the measure to reach the floor.

"I've consistently supported the rescheduling of marijuana," Jeffries said. "It should not be classified as a Schedule I drug."

He went further, describing cannabis's current classification as a relic of "the failed war on drugs, which has resulted in the over-incarceration of millions of Americans since that failed war on drugs was first launched by Richard Nixon in the summer of 1971."

It's a statement that would have been politically risky a decade ago. In 2026, it barely qualifies as controversial — which is precisely the point Jeffries was making. The politics have moved. The policy hasn't.

The Bipartisan Paradox

Jeffries framed the issue as one where the votes exist but the procedural gatekeeping doesn't allow them to be counted. "This does seem to exist as a bipartisan issue, particularly amongst younger generations of Republicans and the entirety of the House Democratic Caucus," he said. "We know that the votes do exist to act legislatively."

The history backs him up — to a point. The House under previous Democratic majorities has twice passed bills to federally legalize marijuana and has on multiple occasions advanced legislation to ease the cannabis industry's access to banking services. But none of those measures have advanced under Republican control of the chamber, and the Senate — regardless of which party held the majority — has never passed legalization or banking legislation either.

That track record creates a familiar cycle: reform passes the House when Democrats control the agenda, dies in the Senate or under Republican House leadership, and the industry remains stuck in federal limbo while 38 states have legalized some form of cannabis.

Jeffries signaled that if a legislative path doesn't open in the current Congress, Democrats will be "in a position to do something about it in the next Congress" — a thinly veiled reference to expectations that the party could reclaim the House majority in November's midterm elections.

Booker Keeps the Pressure On

Jeffries isn't the only senior Democrat keeping cannabis reform in the spotlight. Last week, Senator Cory Booker (D-NJ) — one of the most vocal and persistent advocates for federal marijuana reform in Congress — reiterated his push for comprehensive legalization, continuing a years-long campaign that has placed him at the center of nearly every major cannabis policy debate on Capitol Hill.

Booker has long argued that federal cannabis reform isn't just a matter of industry regulation — it's a civil rights imperative. He has consistently highlighted the racial disparities in marijuana enforcement, pointing to data showing that Black Americans have been arrested for cannabis offenses at dramatically higher rates than white Americans despite roughly equal usage rates. For Booker, legalization without equity provisions, expungement, and reinvestment in communities disproportionately harmed by prohibition is incomplete reform.

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His message last week echoed that theme, reinforcing the urgency of federal action at a moment when the administrative rescheduling process — moving cannabis from Schedule I to Schedule III — remains unresolved and politically uncertain. Booker has previously expressed concern that rescheduling alone doesn't go far enough, arguing that it addresses some regulatory and research barriers but fails to resolve the fundamental conflict between federal prohibition and the state-legal markets operating across most of the country.

Together, Jeffries and Booker represent the clearest articulation of the Democratic position on cannabis: full federal legalization with social equity provisions, not just incremental rescheduling.

The Rescheduling Backdrop

All of this is playing out against the still-unresolved administrative process to reschedule cannabis. The DEA's proposed move from Schedule I to Schedule III — initiated after a recommendation from the Department of Health and Human Services — would represent the most significant shift in federal marijuana policy in decades, but it falls short of what legalization advocates want.

Schedule III classification would ease some burdens on the cannabis industry, most notably eliminating the punitive Section 280E tax provision that prevents marijuana businesses from deducting ordinary business expenses. It would also open doors for more federal research. But it would not legalize cannabis at the federal level, would not resolve banking access issues, and would not address the millions of Americans carrying criminal records for marijuana offenses.

For legislators like Jeffries and Booker, rescheduling is a step — but legislation is the destination.

The Appropriations Angle

Meanwhile, a less dramatic but potentially significant development is unfolding in the House Appropriations Committee, which this week is expected to issue a directive for federal agencies to study the "adequacy" of state marijuana laws and to assess methods for "preventing diversion" of state-legal cannabis into jurisdictions where it remains prohibited.

That language is worth watching. Depending on how it's interpreted and implemented, it could lay groundwork for federal acknowledgment of state-level regulatory frameworks — or it could be used to justify increased federal scrutiny of legal markets. The directive's framing will signal whether Congress is moving toward accommodation of state legalization or pushback against it.

Where This Leaves the Industry

For cannabis operators, investors, and advocates, the Jeffries and Booker comments reinforce a reality that has defined the industry for years: the political support for reform is broad, but the legislative mechanics remain broken.

The House can pass cannabis bills when the majority party wants to. The Senate has never mustered the votes or the will. And the executive branch's rescheduling process moves at a pace that makes glaciers look ambitious.

What's changed is the political cost calculus. Supporting marijuana reform is no longer a liability for most lawmakers — it's increasingly a liability not to. Public polling consistently shows supermajority support for legalization. State-level markets continue to expand. And the gap between what voters want and what Congress delivers grows wider with each session.

Jeffries is right that the votes exist. The question — as it has been for years — is whether the people who control the calendar will ever let them be counted.

Original Content: Marijuana Moment

📈 Dog Walkers

GLP-1’s Are Even Impacting POS In Dispo’s

The cannabis industry has navigated legalization battles, banking restrictions, and price compression. Now it faces an entirely different kind of disruption: Ozempic.

According to a Reuters report, the surging popularity of GLP-1 weight-loss drugs is quietly reshaping consumer behavior in the $40 billion U.S. cannabis market, forcing dispensaries and product manufacturers to rethink what they sell and how they sell it.

The connection centers on one of cannabis's most culturally embedded side effects: the munchies. Users on online forums are reporting diminished cravings while on GLP-1 therapies, along with uncertainty about how the medications interact with marijuana's appetite-driven aftereffects. Dispensaries, meanwhile, are noting shifting customer preferences as a result.

Stoops NYC, a dispensary in New York's Flatiron district, said it increasingly recommends lower-dose edibles, vapes, or tinctures to customers on GLP-1 medications. The reasoning is partly practical: GLP-1 therapies slow gastric emptying, which can delay the onset of edible effects and increase the risk of consumers dosing again too soon — leading to unexpectedly intense experiences.

Wendy Bronfein, co-founder of Curio Wellness, acknowledged the trend is accelerating, saying the company is "exploring ways to provide clearer guidance at the point of sale" as GLP-1 adoption grows.

The science is catching up to the anecdotes. The National Institute on Drug Abuse (NIDA) is sponsoring a clinical trial evaluating tirzepatide — the active ingredient in Eli Lilly's weight-loss drugs — as a potential treatment for cannabis use disorder. NIDA Director Dr. Nora Volkow noted that retrospective analyses of health records show patients prescribed semaglutide had significantly better outcomes related to cannabis use disorder compared to those on other treatments. A separate trial through Brigham and Women's Hospital is expected to launch later this year.

Consumer curiosity is already measurable. Data from cannabis education nonprofit Realm of Caring shows that since 2024, top queries on its hotline have included searches like "THC for weight loss," "weed strains that suppress appetite," and "edibles that don't make you hungry."

The behavioral shifts extend beyond appetite. Some consumers appear to be substituting cannabis for alcohol, while others are moving toward more intentional use focused on sleep or stress relief rather than recreational consumption.

Still, industry insiders urge caution. As Michael Flemmens of SōRSE Technology put it: metabolism, dosage, tolerance, and the specific GLP-1 drug involved all introduce variables that make generalizations premature.

The munchies may be fading. The market implications are just getting started.

🗞️ The News

📺 YouTube

Are We Finally Close to Cannabis Reform? | TTB Presented by Flowhub

What we will cover:

✅ In our latest Trade To Black podcast presented by Flowhub, hosts Shadd Dales and Anthony Varrell are digging into the latest stories in cannabis—and there’s a lot happening right now.

We start with a report suggesting Congress may actually have the votes to pass federal cannabis reform. It sounds promising, but as always in this industry, it raises the bigger question—does it finally get done this time?

From there, we shift to the hemp side of the business, where new USDA data shows U.S. farmers produced $739 million worth of legal hemp last year. At the same time, parts of that market are facing increased scrutiny, especially around unregulated products.

We also touch on Kazmira launching a new medical cannabis education platform, which points to where things could be heading on the healthcare side of the industry.

In our second segment, Dan from The Chart Guys joins us to break down cannabis stock performance following 4/20—and how the market reacted after reports that President Trump is pushing his Cabinet to finalize the rescheduling process.

💸 The Tape

There is a particular brand of Washington theater currently playing out across K Street, and it deserves a proper review. Hemp industry lobbyists, armed with talking points about consumer choice, small business freedom, and the sacred wisdom of the 2018 Farm Bill, are mounting a fierce defense of intoxicating hemp-derived products. They want lawmakers to know that adults should be free to purchase delta-9 THC gummies, delta-9 seltzers, and THCA flower at gas stations, smoke shops, and through the mail. Regulation, yes. Prohibition, absolutely not. Freedom, they insist, is on the line.

Meanwhile, the state-legal cannabis industry — the one with seed-to-sale tracking, pesticide testing, child-resistant packaging, METRC compliance, and onerous tax rates — continues to be treated like a criminal enterprise under federal law. And curiously, many of the same voices shouting loudest about hemp freedom have almost nothing to say about Schedule I, 280E, or the SAFER Banking Act.

Welcome to the most intellectually incoherent fight in American drug policy.

The Molecule Doesn't Care About Your Farm Bill

Let us state the obvious thing that regulators, lobbyists, and apparently a surprising number of federal judges seem willing to ignore: THC is THC. A delta-9 THC molecule extracted from a hemp plant and a delta-9 THC molecule extracted from a cannabis plant are, biochemically speaking, the same molecule. Your endocannabinoid system does not check the DEA's paperwork before binding to a receptor.

The entire legal distinction between "hemp" and "cannabis" rests on a single, arbitrary line drawn in 2018: plants containing 0.3% delta-9 THC by dry weight or less became hemp, which became federally legal. Everything above that threshold remained cannabis, which remained federally illegal. This threshold was not based on pharmacology, consumer safety, or any scientific principle related to psychoactivity. It was a 1970s-era botanical definition that got grandfathered into modern law because nobody expected chemists to actually show up.

But chemists did show up. And they discovered that if you start with compliant hemp biomass, you can synthesize delta-8, delta-10, HHC, THC-O, and yes, delta-9 THC itself in quantities that would intoxicate a small horse — all while technically keeping the final product under the 0.3% dry-weight threshold. A 100mg delta-9 gummy weighing 4 grams is, mathematically, 0.25% THC. Federally legal. Available via FedEx. Stocked at your local vape shop between the Zyns and the energy shots.

That same 100mg gummy, sold in a licensed Colorado or Massachusetts dispensary, requires a state license, plant tracking from clone to consumer, laboratory testing, and compliance with packaging rules that often run dozens of pages.

Same molecule. Same effect. Wildly different legal reality.

The Hemp Industry's Selective Libertarianism

Here is where the hypocrisy gets impossible to ignore. A significant faction of the intoxicating hemp lobby is currently fighting tooth and nail against the federal hemp products ban tucked into upcoming farm bill and appropriations legislation. They argue — with some merit — that banning these products would crush small businesses, eliminate consumer access, wipe out thousands of jobs, and hand the entire market back to the illicit sector.

All of those arguments are correct. They are also, word for word, the exact arguments that state-legal cannabis operators have been making for over a decade about federal prohibition of marijuana.

Yet the hemp lobby has largely refused to link arms with the broader cannabis reform movement. Many hemp trade groups have explicitly distanced themselves from marijuana legalization, preferring to protect their narrow legal carve-out rather than advocate for coherent, unified THC regulation. Some have gone further and actively opposed cannabis reform measures, apparently worried that federal legalization of marijuana would eliminate their regulatory arbitrage advantage.

This is not principle. It is protectionism wearing a freedom costume. You cannot credibly argue that adults deserve access to psychoactive cannabinoids while simultaneously arguing that the same adults should be arrested for buying those cannabinoids from a licensed dispensary across the street. Or rather — you can argue that, but nobody serious should believe you.

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The Regulatory Vacuum Is Killing Everyone

The current split system is bad policy by every available metric. Licensed cannabis operators pay federal taxes under Section 280E that effectively range from 40% to 70% of net income, while their hemp-derived competitors pay normal corporate rates. Cannabis companies cannot deduct ordinary business expenses, cannot access traditional banking, and cannot ship products across state lines. Hemp companies can do all three — often selling the functionally identical product.

Consumers, meanwhile, navigate a confusing and genuinely dangerous marketplace. Hemp-derived intoxicants sold outside licensed channels frequently contain unknown synthesis byproducts, heavy metals, residual solvents, or simply much more THC than the label claims. Regulated cannabis products, whatever their flaws, at least come with mandatory lab results. The irony is that the "legal" federal product is often the less safe one.

And state regulators are losing their minds. Texas, California, Tennessee, Georgia, and a growing list of others have moved to ban or severely restrict intoxicating hemp products within their borders — creating yet another patchwork layered on top of the existing state cannabis patchwork. The industry is fighting a dozen state-level brushfires while ignoring the structural fire at the federal level.

The Only Honest Path: Regulate THC at the Federal Level

There is a clean solution, and it has actually been drafted. The States 2.0 Act, reintroduced by a bipartisan group including Senators Cory Booker, Dan Sullivan, and Rand Paul, would deschedule cannabis from the Controlled Substances Act and establish a framework allowing states to regulate cannabis products — including hemp-derived intoxicants — within a coherent federal structure.

The logic is simple. If a product contains psychoactive THC above some threshold meaningful to actual human physiology — not a botanical abstraction from a 1970s textbook — it should be regulated as a cannabis product. Full stop. That means:

Age-gated sales. Laboratory testing. Child-resistant packaging. Advertising restrictions. Taxation appropriate to a regulated intoxicant. Interstate commerce under federal rules. Banking access for compliant operators. And an end to Section 280E penalties that punish legal businesses for the crime of selling a legal product.

Under a States 2.0 framework, hemp farmers would still grow hemp for fiber, grain, and non-intoxicating CBD. Intoxicating products would be regulated as what they are — THC products — regardless of botanical origin. The arbitrage game ends. The compliance playing field levels. Consumers get safer products. States retain primacy over how they regulate sales within their borders.

This is the fight the hemp industry should be joining. Not the narrow, self-interested battle to preserve a loophole, but the broader, more defensible fight for rational federal THC policy. Because the current posture — demanding freedom for hemp operators while tolerating prohibition for cannabis operators — is not a political strategy. It is a moral and intellectual failure dressed up in lobbying invoices.

The federal hemp ban currently looming in Washington is going to happen, or something functionally close to it. The only question is whether the industry spends the next year fighting the wrong war — or whether it finally recognizes that the only durable protection for intoxicating products of any kind is a unified, federal framework that treats THC like the regulated substance it is. The States 2.0 Act, or something like it, is the way out.

📈 Dog Walkers

Minnesota Is On Trend

Here's a data point that deserves more attention than it's likely to get: youth cannabis use in Minnesota is declining — and it's been declining for over a decade, including after the state legalized adult use in 2023.

According to the 2025 Minnesota Student Survey, 96% of students reported no cannabis use in the past month. Among eighth, ninth, and 11th graders combined, self-reported cannabis use over the previous 12 months has dropped 57.7% since 2013. And in a notable reversal of a long-running trend, more students now perceive using cannabis once or twice a week as moderately to greatly harmful — a shift that flips the direction seen from 2013 through 2022.

The survey, conducted every three years by the Minnesota Department of Health (MDH), collects anonymous responses from students in grades five, eight, nine, and eleven covering health, wellbeing, and related topics. The 2025 edition is particularly significant because it's the first survey conducted since Minnesota legalized recreational cannabis — making it an early real-world test of one of the most persistent arguments against legalization: that it will lead to increased youth consumption.

So far, that argument isn't holding up.

Why This Matters Beyond Minnesota

The legalization debate has always been shadowed by concern about kids. Opponents have consistently warned that normalizing adult cannabis use sends the wrong message to young people, making them more likely to experiment. It's a reasonable concern on its face — and one that legislators in every state considering legalization have had to address.

But the emerging data tells a different story. Minnesota joins a growing list of legal states where youth consumption has either remained stable or actively declined following legalization. The pattern suggests that regulation, education, and controlled access may actually be more effective at reducing youth use than prohibition — a finding that aligns with similar trends observed in Colorado, Washington, and Canada after their respective legalization efforts.

The 57.7% decline over twelve years is especially striking. That's not a modest dip within the margin of error — it's a sustained, multi-survey trajectory that predates legalization and has continued through it. Whatever combination of factors is driving the decline — better education, shifting cultural attitudes, increased perception of harm, or simply more interesting things to do — legalization doesn't appear to have disrupted it.

The Nuance

Minnesota Health Commissioner Dr. Brooke Cunningham struck an appropriately balanced tone, acknowledging the positive trends while noting that "some of our children are encountering cannabis at young ages." Her call for parents to talk to kids about cannabis before they encounter it reflects a public health approach that treats education as the first line of defense rather than criminalization.

That framing matters. The conversation around youth and cannabis doesn't have to be binary — either legalization is fine for kids or it's a disaster. The Minnesota data suggests a more productive middle ground: legalize responsibly, regulate access tightly, invest in education, and measure the outcomes.

So far, the outcomes are encouraging. 96% of Minnesota students aren't using cannabis. The trend line is heading in the right direction. And legalization, at least in this early snapshot, hasn't changed that.

The data doesn't lie — even when it contradicts the narrative.

🗞️ The News

📺 YouTube

Trump Signs Executive Order + Hints at Cannabis Rescheduling | TTB Presented by Flowhub

What we will cover:

✅ In this episode of Trade To Black presented by Flowhub, host Shadd Dales and co-host Anthony Varrell break it down across two key segments.

Segment 1 features Christian Angermayer, founder of atai Life Sciences (NASDAQ: ATAI) and Beckley Waves, joining the show to talk about the executive order signed by Donald Trump aimed at accelerating psychedelic research. The focus is simple—what this actually means for the sector, and why this moment is getting real attention across mental health and biotech.

But what stood out during that press conference wasn’t just psychedelics.

Trump also referenced cannabis.

In a moment that caught attention, he told Joe Rogan the rescheduling process is being “slow walked,” then turned to his right and asked about getting it done. It wasn’t a formal update—but it was a clear signal cannabis is still part of the conversation.

Segment 2 brings in Michael Bronstein to break down the policy side, including new legislation from Senator Rand Paul that would allow states to control how hemp-derived THC products are regulated ahead of a potential federal crackdown in 2026.

Two sectors moving at different speeds—but both very much in play right now.

💸 The Tape

In a signing ceremony that would have raised eyebrows in any prior administration, President Donald Trump on Saturday inked an executive order designed to accelerate federal research and patient access to psychedelic drugs — flanked in the Oval Office by HHS Secretary Robert F. Kennedy Jr., CMS Administrator Dr. Mehmet Oz, FDA Commissioner Marty Makary, and, in a tableau that captures the political moment as well as anything could, podcaster Joe Rogan.

The order itself is meaningful. The aside about cannabis may be even more so.

What the Order Actually Does

The executive order directs the FDA to issue Commissioner's National Priority Vouchers to qualifying psychedelic drugs that hold Breakthrough Therapy designations for serious mental illness. According to FDA Commissioner Marty Makary, three priority review vouchers will be issued next week to three serotonin 2A agonists, with agency decisions expected later this summer. Statnews Those vouchers can compress review timelines from months to weeks — a meaningful acceleration for a class of drugs that has been navigating regulatory purgatory for the better part of a decade.

The order also instructs the FDA and DEA to establish an expanded access pathway for eligible patients to receive investigational psychedelics — including ibogaine — under the framework of the 2018 Right to Try Act. The federal government is also committing $50 million for further research into ibogaine specifically CNN, the West African plant-derived compound that has become a cause célèbre for combat veterans seeking treatment for PTSD and traumatic brain injury.

Other provisions instruct agencies to improve data sharing between the FDA and the Department of Veterans Affairs, and facilitate fast rescheduling of any psychedelic drugs that become FDA approved Fox News. The DEA and DOJ will begin rescheduling reviews after successful Phase 3 trials, and Trump indicated rescheduling of approved drugs would move "very quickly." Statnews

The compounds in scope read like a 1960s Berkeley reading list: psilocybin, MDMA, LSD, and ibogaine. The framing, however, is decidedly 2026: veterans, treatment-resistant depression, and a national mental health crisis the order pegs at 14 million American adults with serious mental illness, roughly 8 million of whom are on prescription medication NPR.

Where the VA Already Stands

The order doesn't drop into a vacuum. The Department of Veterans Affairs has been quietly building a psychedelics program for over a year. The VA is now participating in at least five psychedelic trials across New York, California, and Oregon. NPR The agency's first MDMA-assisted therapy study — funded in late 2024 and run through researchers affiliated with Brown and Yale at VA medical centers in Providence and West Haven — represented the VA's first investment in psychedelic research in more than 50 years.

That work, paired with parallel psilocybin studies, has given the VA a running start that the new executive order will only amplify. The data-sharing mandate between FDA and VA is the operationally significant piece here: it stitches together two parallel research streams that, until now, have been largely talking past each other.

HHS, RFK Jr., and the Politics of Permission

On the HHS side, the directional signal has been clear for some time. Secretary Kennedy has floated support for expanding access to psychedelics, and the Trump administration installed a doctor specializing in psychedelic-assisted therapy in a high-level position at the Substance Abuse and Mental Health Services Administration (SAMHSA). drugfree Saturday's order operationalizes what had previously been rhetorical posture.

It's worth noting what the order does not do. It does not reschedule any psychedelic. It does not compel the DEA to do so. As legal scholars have pointed out, presidents cannot compel the rescheduling of a controlled substance — they can only request scientific and medical review by the DEA and HHS Petrie-Flom Center. The actual reclassification mechanics still require an agency process that, as cannabis operators well know, can stretch indefinitely.

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Compass Pathways: The Furthest Along

Among the publicly traded names tracking this development, Compass Pathways (Nasdaq: CMPS) is the one with the most immediate skin in the game. The company's lead asset, COMP360 — a synthetic, proprietary formulation of psilocybin — is the furthest-developed classic psychedelic in the regulatory pipeline.

The Phase 3 program has now delivered two consecutive wins:

• In June 2025, the COMP005 trial met its primary endpoint, with a single 25 mg dose of COMP360 producing a significant reduction in depression severity at six weeks on the MADRS scale HCP Live in patients with treatment-resistant depression (TRD).

• On February 17, 2026, Compass announced that COMP006 also met its primary endpoint, with two 25 mg doses administered three weeks apart producing a statistically significant MADRS reduction at week 6 versus a 1 mg control. HCP Live

Compass has requested an FDA meeting and anticipates submitting a New Drug Application in Q4. HCP Live Twenty-six-week Part B data from COMP006 is expected in early Q3 2026. Compasspathways Translation: COMP360 is the compound most likely to be sitting on Commissioner Makary's desk when those priority vouchers start moving — and the most likely first candidate for a near-term FDA approval that would, per Trump's order, trigger expedited DEA rescheduling.

And Then There Was Cannabis

Which brings us to the moment that should make every cannabis operator sit up straight.

During the same Oval Office signing ceremony, Trump turned to what appeared to be a DOJ or White House official and, in remarks captured on video, said: "You're going to get the rescheduling done, right, please? Will you get the rescheduling done, please? You know, they're slow-walking me on rescheduling." Marijuana Moment

The president did not specifically name cannabis, but the timing matters: it has been four months since Trump directed the attorney general to complete the process of moving marijuana from Schedule I to Schedule III "in the most expeditious manner." Marijuana Moment That hasn't happened.

The juxtaposition is hard to miss. In a single ceremony, Trump used the word "psychedelics" to describe a category that includes LSD, MDMA, and an obscure West African shrub root, and pledged to "dramatically accelerate" their availability — while in essentially the same breath complaining that his own administration is dragging its feet on rescheduling a substance that is already legal for adult use in 24 states and medically legal in nearly 40.

For an industry that has spent years watching the DEA find new ways to take its time, the optics are uncomfortable. Psilocybin — a Schedule I drug with no commercial market and no state-legal infrastructure — is being handed FDA priority vouchers within a week. Cannabis, a Schedule I drug with roughly $30 billion in legal annual sales, remains in the regulatory queue the president himself directed to be cleared.

The Bigger Picture

Step back from the Joe Rogan optics and the "Can I have some, please?" jokes (yes, Trump made one), and Saturday's order is genuinely consequential. It validates a research direction that has been institutionally suspect since 1970. It hands the VA a federal mandate to do at scale what it has been doing in pilot form. It creates a regulatory glide path for the first generation of psychedelic medicines — Compass's COMP360 chief among them — that could be commercially available within 18 to 24 months.

But the cannabis aside is the tell. The administration has now publicly demonstrated two speeds: priority-vouchers-by-next-week for compounds with podcaster constituencies, and four-months-and-counting for a sector with actual revenue, actual employment, and actual state-level regulatory frameworks already built out.

The federal hemp ban looming on the horizon adds another layer to the asymmetry. The same federal apparatus that will soon be expediting access to ibogaine — a compound the NIH previously discontinued research on due to cardiovascular toxicity — is simultaneously preparing to wipe out a multi-billion-dollar consumer hemp market on safety grounds.

Welcome to drug policy in 2026, where the speed of reform appears to correlate less with risk profile or market readiness than with who's standing behind the Resolute Desk on signing day.

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$CMND ( ▼ 1.63% ) Reports Topline Data

Clearmind Medicine just cleared a meaningful hurdle in the race to develop psychedelic-derived treatments that don't actually require a psychedelic experience.

The clinical-stage biotech announced that CMND-100, its proprietary non-hallucinogenic oral drug candidate for treating Alcohol Use Disorder (AUD), has met the primary endpoint in its FDA-approved Phase I/IIa clinical trial. Results from the study's third cohort confirmed a high safety profile even at the highest dosage administered to date, with no serious adverse events reported and continued favorable tolerability consistent with earlier cohorts.

The trial is a multinational, multicenter study evaluating the safety, tolerability, pharmacokinetics, and preliminary efficacy of CMND-100 in patients with moderate to severe AUD. Meeting the primary safety and tolerability endpoint across escalating doses is exactly what you want to see at this stage — it keeps the program on track for continued advancement and gives regulators confidence that the compound can be pushed further.

What makes CMND-100 particularly interesting is its positioning as a second-generation psychedelic neuroplastogen — a compound designed to deliver the therapeutic benefits associated with psychedelic mechanisms without the hallucinogenic effects. For AUD, a condition affecting millions worldwide with limited effective treatment options, a well-tolerated oral therapy that doesn't require supervised psychedelic sessions could represent a significant practical advantage.

It's still early days — Phase I/IIa is about safety, not efficacy proof — but for Clearmind, hitting the primary endpoint cleanly is the green light the pipeline needed.

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Senator Rand Paul Hemp Plan Sparks Debate | TTB Weekly Recap

What we will cover:

✅ The tone is shifting again across the cannabis industry—and this week’s developments made that clear.

In the latest Trade To Black Weekly Recap presented by FRE Pouch, host Shadd Dales breaks down three key themes: growing policy fragmentation in Washington, continued delays at the state level, and a widening gap between operators on the business side.

On the policy front, Senator Rand Paul introduced a bipartisan hemp bill that would allow states to opt out of a federal crackdown on hemp-derived THC products. While it’s being framed as flexibility, the bigger issue is what it creates—a patchwork system that adds complexity for operators and investors.

At the state level, Virginia’s adult-use rollout continues to move slowly, with a new delay pushing potential retail sales further into 2027.