💸 The Tape

Hawaii’s House of Representatives just delivered a curveball, opting to shove a sweeping adult-use legalization bill back into the legislative oven for more baking time. HB 1246, championed by Rep. David Tarnas, would have merged hemp and cannabis oversight under a single administrative roof, potentially offering the islands a one-stop shop for all things green. But in a swift voice vote, the House effectively kicked the measure down the road until next session—prompting plenty of frustrated sighs from supporters, who must now watch the session clock run out.

This delay keeps Hawaii’s cannabis market in a holding pattern. When you consider the tourism magnet that these islands represent, a robust recreational program could have opened the floodgates for untapped revenue. But, as lawmakers pointedly reminded us, there’s no consensus under the House dome just yet. As House Majority Leader Sean Quinlan dryly put it, “We were unable to build consensus.” That’s hardly music to investors’ ears. Meanwhile, the companion bill in the Senate, SB 1613, still has a theoretical shot at making it across the finish line—assuming it can also pacify hesitant House members in a mad dash before this year’s committee deadline.

Supporters argue the delay leaves the door open for potential chaos if the federal government reschedules or de-schedules cannabis first—imagine the scramble if D.C. changes course while Hawaii remains stuck in neutral. Add to that the nearly 300 pages of testimony from agencies, advocacy groups, and the public, and you get a sense of the legislative tug-of-war. Law enforcement agencies like the Honolulu Police Department and prosecutors in Honolulu and Maui stood firm against the measure, citing public safety concerns. Others, such as the Hawaii Substance Abuse Coalition, remain skeptical of broader legalization.

In the end, the House’s decision amounts to a strategic timeout. Lawmakers want more time to hash out details (pun intended), build consensus, and avoid what some fear could be a fiasco if rushed. For the cannabis crowd holding out hope for that sweet, sweet aloha-infused adult-use market, there’s no cause for total despair—but it looks like we have hit a major snag. Sometimes, even in paradise, progress takes a painfully slow path. As always, we’ll watch closely—because in the cannabis world, fortunes can change faster than a beachside sunset.

📈 Dog Walkers

Canopy Q3 Numbers Are Out

Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) posted Q3 FY2025 results, highlighting a 5% net revenue drop year-over-year to $74.8 million, or an 8% increase after removing divested assets. Gross margin fell by 400 bps to 32%, mainly from infused pre-roll costs and Storz & Bickel overhead, partially offset by strong medical cannabis margins. Operating loss narrowed 61% to $24 million, and adjusted EBITDA loss of $3 million also improved 61%. Free cash flow saw a 17% improvement, driven by lower cash interest. CEO Luc Mongeau aims for sustainable profitability and value creation, with CFO Judy Hong citing further flexibility from a $112 million term loan prepayment, reducing total debt to $442 million.

Aurora and SNDL Ink Supply Agreement

Aurora Cannabis Inc. (“Aurora”) and SNDL Inc. have entered into a strategic supply agreement to provide Aurora with premium cannabis flower from SNDL’s indoor Atholville, New Brunswick facility. Valued at an estimated $27 million over three years, with an option to extend, this partnership reinforces a longstanding supply relationship between the two Canadian cannabis leaders. Aurora’s Executive Chairman and CEO, Miguel Martin, emphasizes the importance of a balanced approach between in-house and third-party cultivation. SNDL CEO Zach George highlights his company’s role as Canada’s leading integrated cannabis business, ready to supply partners committed to quality, excellence, and ongoing, continued growth.

Illinois Sales Are High

Illinois is celebrating five years of adult-use cannabis legalization and four consecutive years of record-setting sales, with 2024 marking over $2 billion in product sold—a 2.5% uptick from last year. Of that, $1.722 billion came from adult-use dispensaries, $285 million from medical sales, and tax revenues exceeded $490 million. Governor JB Pritzker cites this as proof of Illinois’ equity-focused approach, though he expresses concern over unregulated hemp undermining legal businesses. Lieutenant Governor Juliana Stratton says these sales foster reinvestment in communities hit hard by past drug policies. With 244 dispensaries—including 134 social equity licenses—Illinois’ cannabis sector continues thriving and expanding.

Ohio Lawmaker Changes Tune

Ohio House Speaker Matt Huffman, once determined to clamp down on cannabis laws, seems to have softened his stance after meeting with pot-friendly lawmakers like Rep. Jamie Callender. Voters legalized adult-use last November, with dispensaries selling recreationally since August 2024. While Huffman initially backed a Senate-passed bill restricting THC levels, banning most vapes, and halving home-grow limits, he’s recently backpedaled on some positions. Meanwhile, unregulated delta-8 is drawing consumers away from licensed stores, prompting calls for regulation. With Ohio reporting over $265 million in adult-use sales, policymakers appear poised to refine, rather than overturn, the existing marijuana framework. Huffman acknowledges it’s unlikely lawmakers will reverse legalization, yet he remains focused on “illicit market” concerns. Many Republicans now lean toward ensuring safe, regulated sales.

🗞️ The News

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📺 YouTube

CNBC Host Tim Seymour Talks Cannabis Strategies in 2025

What we covered:

✅ On our latest Trade to Black podcast this Friday at 11 AM Eastern, host Shadd Dales and Anthony Varrell sit down with Tim Seymour, host of CNBC's Fast Money, CIO of Seymour Asset Management and portfolio manager for cannabis ETF CNBS (NYSEARCA: CNBS).

Tim is viewed as a pioneer for the cannabis industry who brought cannabis investing into the mainstream conversation. As one of the first broadcasters on CNBC to openly discuss the cannabis sector, Tim helped legitimize the industry in the eyes of Wall Street. Beyond broadcasting, he's a seasoned investor with a strong background in emerging markets and macroeconomic trends, making him experienced at navigating the evolving cannabis landscape.

We'll cover Tim's strategy for CNBS going forward, how he actively manages the fund, and his thoughts on the recent closure of the MJUS ETF. Plus, we'll dive into CNBS's upcoming 1-for-12 reverse split.

Finally, we'll ask for his outlook on the cannabis industry in 2025, amid ongoing rumors about potential cannabis reform under the Trump administration, whether he plans to get more hands-on like before, and what he expects to happen in the market on a macro level in 2025.