💸 The Tape

California just hit the reset button on its hemp policy, and this time Gov. Gavin Newsom is making sure intoxicating hemp products won’t slip through regulatory cracks. On Thursday, Newsom signed AB 8, a bill by Assembly Majority Leader Cecilia Aguiar-Curry (D), that effectively integrates intoxicating hemp into the state’s regulated cannabis system. Translation: hemp with a buzz now plays by the same rules as weed.

“We’re rolling back the era of loophole hustlers and protecting Californians,” Newsom declared, taking a not-so-subtle shot at hemp operators who flooded gas stations and smoke shops with delta-8 gummies and THCA flower. For years, those products existed in a gray zone—federally legal under the 2018 Farm Bill, but largely untested, unregulated, and widely available to minors. That ends here.

What the Law Actually Does

Starting in January 2028, any consumable hemp product that contains cannabinoids other than CBD must comply with the same rules as marijuana—licensed retailers, age-gating, lab testing, and packaging requirements included. Key provisions include:

• Ban on synthetics: No more “Frankenstein cannabinoids” cooked up in labs.

• Inhalable hemp crackdown: Hemp-derived vapes and smokables are banned unless they meet cannabis rules.

• Food & beverage restrictions: Raw hemp extracts in consumables face tighter limits.

• Enhanced enforcement: Local and state officials can inspect, seize, and destroy unlawful hemp products.

In short, intoxicating hemp products won’t be outlawed entirely, but they’ll need to line up under the cannabis regulatory umbrella—and compete directly with marijuana SKUs.

The Politics Behind It

This move didn’t happen in a vacuum. Newsom had already issued emergency regulations last year banning hemp products with any “detectable” THC, which rattled the hemp sector and left industry advocates predicting a wipeout. At the time, it was pitched as a public health measure. Now, AB 8 refines that approach: regulate, don’t annihilate.

Aguiar-Curry framed it as consumer protection: “Bad actors have abused the law to sell intoxicating hemp products in California. AB 8 ensures we have responsible regulation and keeps kids safe, while giving legal cannabis businesses a fair shake.”

Nicole Elliott, head of the Department of Cannabis Control, went further—calling AB 8 a “critical step forward” for both consumer safety and leveling the playing field for cannabis operators who’ve long complained about being undercut by unregulated hemp.

Why It Matters

California is now among the first major cannabis states to force hemp with a buzz into the cannabis framework. For the legal marijuana industry, it’s a lifeline against an unregulated competitor. For hemp stakeholders, it’s a shot across the bow: adapt or get pushed out.

And for consumers? Expect fewer mystery gummies at the corner smoke shop and more standardized, lab-tested options on dispensary shelves.

📈 Dog Walkers

$LOVFF ( ▲ 0.94% ) Converts Debt

What’s Going On Here: Cannara Biotech Inc. (TSXV: LOVE / OTCQB: LOVFF / FRA: 8CB0) is trading in its I.O.U. for equity. The Québec-based cannabis producer announced plans to settle about $6.2 million of debt tied to its Olymbec Convertible Debenture through the issuance of 3,462,763 common shares at $1.80 per share.

The tab includes $4.7 million in principal plus $1.5 million in accrued interest. Roughly 851,652 shares will cover interest alone. The transaction, while still subject to TSX Venture Exchange approval, eliminates a meaningful liability while strengthening Cannara’s capital structure.

There is, however, a governance wrinkle: Derek Stern, a Cannara director, holds a significant stake in Olymbec. That makes this a related party transaction under MI 61-101, though Cannara says exemptions apply since the deal’s size is under 25% of market cap. Post-closing, Olymbec will control 23.79 million shares, while Stern personally holds 376,040—together about 25.47% of Cannara’s stock.

Independent directors have already given the plan a thumbs-up, making this one step closer to reality.

As a side note, Cannara also granted 40,000 stock options at $1.80 to Bristol Capital Ltd. for investor relations services. The options expire in April 2028, a tidy thank-you for keeping the company’s story polished in front of investors.

Why it matters: This move reduces debt, simplifies the balance sheet, and keeps Cannara’s largest backer—who also happens to sit at the board table—deeply invested. For shareholders, it’s a reminder that Cannara isn’t just growing premium cannabis—it’s pruning its liabilities, too.

$IIPR ( ▲ 2.5% ) Invests Into IQHQ

What’s Going On Here: Innovative Industrial Properties (NYSE: IIPR) just took a big step outside its cannabis comfort zone. The REIT announced a $105 million initial investment into IQHQ, Inc., a major life science real estate platform. The deal includes a $100 million revolving credit facility plus preferred stock, giving IIP its first foothold in a sector that’s not federally shackled by cannabis restrictions.

Pro forma for this deal, IIP still has $165 million in commitments lined up with IQHQ, expected to be funded in tranches through Q2 2027. The move diversifies IIP’s portfolio, which has long been anchored by more than $2 billion of cannabis-linked real estate.

Executive Chairman Alan Gold called it a “highly accretive” use of capital, stressing the chance to ride the “long-term strength” of the life sciences industry while continuing to maximize returns from IIP’s existing properties.

But that’s not all: IIP also secured a commitment from a federally regulated commercial bank for a three-year, $100 million secured revolving credit facility. This new revolver, priced at SOFR + 200 bps (about 6.1% as of Sept. 30, 2025), will be backed by the IQHQ investment itself. The facility is expected to close in Q4 2025, pending final documentation.

Why it matters: This marks IIP’s first real step in hedging against federal cannabis uncertainty while keeping its balance sheet flexible. By leveraging cash on hand, existing credit, and a new federally backed revolver, IIP is positioning itself as more than a cannabis REIT—it’s signaling a shift toward diversified real estate returns.

🗞️ The News

📺 YouTube

Democrats Failed on Cannabis - Now Republicans Take Credit | TDR Cannabis in 5

What we will cover:

✅ California Governor Gavin Newsom recently joked that if he were the “leader of the free world,” he’d legalize cannabis and get Americans “high on patriotism.” Funny line, sure — but the real story is the politics behind it.

For years, Democrats have campaigned on cannabis reform and delivered little to nothing. From Obama to Biden, promises of decriminalization, banking access, and legalization have gone unfulfilled. Even popular measures like SAFE Banking stalled out. Meanwhile, public support for reform sits near 70%, including strong numbers among independents and Republicans.

Now Donald Trump is back in the White House. Republicans control both chambers of Congress. That means the GOP has a chance to seize cannabis reform — whether through rescheduling, banking access, or another federal move — and flip the script by claiming Democrats failed while Republicans delivered.

On TDR Cannabis in Five, presented by Dutchie, Shadd Dales breaks down why Newsom’s comment isn’t just a joke — it’s a signal. Democrats may finally realize they’re on the verge of losing an issue they once owned. We’ll cover Newsom’s California record, the risks for Democrats, and what a GOP-led reform push could mean for the industry and investors.