💸 The Tape

California’s cannabis market just caught a break. Gov. Gavin Newsom signed AB 564 into law this week, officially pressing pause on a 25 percent excise tax hike that threatened to squeeze licensed operators right when they’re already battling an entrenched illicit market. For the next five years, at least, the Golden State’s retailers, growers, and consumers can exhale—though maybe not too deeply until October, when the rollback officially takes effect.

Why the Rollback Matters

The excise tax, which jumped from 15 percent to 19 percent in July, was widely panned as the wrong move at the wrong time. California’s cannabis industry is already navigating thin margins, regulatory overload, and stubborn competition from untaxed street sales. As Assemblymember Matt Haney (D), the bill’s sponsor, put it: “California’s cannabis economy can bring enormous benefits to our state, but only if our legal industry is given a fair chance to compete.”

Translation: voters wanted a regulated market, not a coffin for licensed businesses.

Bipartisan Buy-In, Belated Fix

The measure enjoyed rare bipartisan support, though the legislative journey was anything but smooth. Newsom and Assembly Speaker Robert Rivas (D) pushed for a freeze during budget talks earlier this year, but Senate leadership blocked the effort. The tax hike went live on July 1 anyway, leaving operators scrambling. Only now, months later, will relief arrive—though many say the delay already cost millions in sales and jobs.

Industry Reactions

Cannabis businesses, unsurprisingly, greeted the signing like parched desert wanderers spotting a water fountain. Weedmaps Chief Counsel Brian Camire called the rollback “an important lifeline” that could stabilize the market and disincentivize “bad actors” undermining licensed operators.

The numbers back that optimism. During the pandemic years, California’s cannabis tax receipts soared, but legal operators steadily lost ground as prices stayed high and consumers drifted to cheaper, unregulated sellers. Pausing the tax hike may help restore some balance—though whether it’s enough to counter years of illicit growth remains an open question.

The Fine Print

Under the law, the 15 percent rate will hold until October 2030, after which regulators will reassess, armed with revenue data and legislative guidance. Annual reports to lawmakers will measure whether the pause boosts overall receipts or simply leaves the state’s coffers lighter. Either way, it’s a political gamble: California has leaned heavily on cannabis tax dollars to fund social programs.

Bottom Line

California’s legal cannabis market has long been described as the nation’s biggest—and perhaps its most troubled. By signing AB 564, Newsom isn’t fixing all the problems, but he is giving licensed players a little breathing room. In an industry defined by razor-thin margins and regulatory whiplash, sometimes survival itself is the victory.

📈 Dog Walkers

$JUSHF ( ▲ 3.01% ) Amends VA Mortgage

What’s Going On Here: Jushi Holdings Inc. (CSE: JUSH | OTCQX: JUSHF) is giving its balance sheet a little breathing room thanks to a freshly modified loan agreement with FVCBank. The vertically integrated, multi-state cannabis operator announced it has secured an additional $4 million in loan proceeds, extending its financial runway and lowering its cost of capital.

Here’s the breakdown: the maturity date now stretches to September 18, 2030, the interest rate floor dropped from 8.25% to 7.50%, and the loan remains backed by Jushi’s cultivation and manufacturing hub in Manassas, Virginia. In plain English: more time, cheaper money, and still secured by the company’s home-state assets.

The company plans to put the fresh cash to work for capital expenditures, working capital, and other corporate priorities—all aimed at keeping growth humming and operations steady as the cannabis sector navigates a choppy capital markets environment.

CEO Jim Cacioppo didn’t weigh in directly on this move, but the message is clear: in today’s cannabis industry, securing flexible, long-term financing is just as valuable as landing a prime dispensary location. For Jushi, this modification buys time, trims costs, and injects new fuel into the Virginia growth engine.

$GRUSF ( ▲ 2.22% ) Expands To Illinois

What’s Going On Here: Grown Rogue International Inc. (CSE: GRIN | OTC: GRUSF) is going all-in on Illinois. The flower-forward operator just acquired the remaining 30% minority interest in Rogue EBC, LLC, its state subsidiary, for a tidy $1.5 million. The structure: $500K upfront, $500K in six months, and the final $500K due by the earlier of 15 months or first harvest.

CEO Obie Strickler called the deal a “logical step,” noting that the buyout came after the minority partner requested liquidity for reasons unrelated to Grown Rogue. Originally, the Illinois venture was designed as a split—Grown Rogue managing cultivation while the partner handled manufacturing—but now, Rogue controls the whole board.

The move reflects confidence in Grown Rogue’s craft-first, efficiency-driven cultivation model, which has proven itself in multiple markets, most recently with a successful New Jersey launch. Strickler believes Illinois’ market dynamics mirror New Jersey’s, making it fertile ground for the company’s brand of disciplined, high-quality flower production.

The acquisition is still subject to Illinois Department of Agriculture approval, but if greenlit, Grown Rogue will head into the Land of Lincoln with full control, a streamlined structure, and a sharper growth trajectory.

🗞️ The News

📺 YouTube

Canadian and U.S. Cannabis Market Updates I TTB Powered by Dutchie

What we will cover:

✅ Canadian cannabis operators that remain in the market continue to show resilience, even while excise tax obligations weigh heavily on the sector. Talks in Ottawa between the Liberal government and former Bank of England governor Mark Carney have raised questions about whether meaningful reform could finally be on the table. Meanwhile, in the U.S., Minnesota is navigating lawsuits tied to its adult-use rollout, and Virginia’s upcoming gubernatorial election could set the stage for legalization if Rep. Abigail Spanberger wins in November.

On this episode of the Trade To Black podcast, presented by Dutchie and hosted by Shadd Dales and Anthony Varrell, Rubicon Organics (TSX: ROMJ | OTCQX: ROMJF) CEO Margaret Brodie shares the latest on the company and her perspective on the broader Canadian cannabis landscape. She discusses how companies that have survived industry consolidation are positioned today, and why potential tax reform matters for long-term competitiveness.

The conversation then shifts south of the border with Michael Bronstein, president of the American Trade Association for Cannabis and Hemp. Bronstein unpacks the legal disputes in Minnesota that are complicating the state’s adult-use rollout, while also looking at Virginia, where the November election could be a tipping point. Spanberger has already signaled that passing adult-use cannabis legislation would be a priority if elected, making this race one of the most consequential for cannabis policy in the U.S. this year.