💸 The Tape

Pennsylvania Governor Josh Shapiro recently reiterated his call for legalizing adult-use cannabis, emphasizing that the state is missing economic opportunities while nearby jurisdictions move forward with their own regulated cannabis markets. Speaking during his budget address, Shapiro noted that 24 states have legalized cannabis for adult use, including five of Pennsylvania’s six neighbors—Ohio, Maryland, New York, New Jersey, and Delaware.

According to Shapiro, many Pennsylvanians currently drive across state lines to buy cannabis, thereby sending tax revenues elsewhere. He highlighted discussions with cannabis company executives in New Jersey and Maryland who reported that roughly 60% of their adult-use customers travel from Pennsylvania. This outflow of potential revenue, Shapiro argued, “doesn’t make sense,” given that a robust medical-only cannabis program already exists within the Commonwealth, generating more than $1.7 billion in sales in 2024.

Pennsylvania collects roughly $35 million in annual tax revenue from medical cannabis growers and processors. However, under Shapiro’s proposed budget, legalizing and taxing adult-use cannabis could generate nearly $1.3 billion over five years. His plan sets July 1, 2025, as the target date for legalization to take effect, with retail sales beginning on January 1, 2026. From these proceeds, Shapiro intends to allocate $10 million to restorative justice initiatives and $25 million to help small, diverse businesses enter the new marketplace.

Several Pennsylvania lawmakers share Shapiro’s enthusiasm for legalization. In the closing weeks of last year’s legislative session, Representatives Aaron Kaufer (R-Luzerne) and Emily Kinkead (D-Allegheny), as well as Senators Sharif Street (D-Philadelphia) and Dan Laughlin (R-Erie), sponsored bipartisan bills aimed at ending cannabis prohibition. Nonetheless, the state’s long-standing divided government—Democrats hold a narrow majority in the House, while Republicans control the Senate—creates an uncertain path forward.

Gov. Shapiro’s plan also calls for expunging nonviolent cannabis possession records, positioning legalization as not only an economic strategy but also a critical move toward social and criminal justice reform. While it remains unclear whether the legislature will act, momentum appears to be building toward a comprehensive policy shift.

📈 Dog Walkers

Rep Clyde Is Sent Packing

Rep. Andrew Clyde (R-GA) quietly withdrew an amendment that could have kneecapped the current marijuana rescheduling push, sparing advocates from yet another Capitol Hill curveball. The proposal, meant for a fentanyl crackdown bill, aimed to yank scheduling authority away from the attorney general and restore DEA’s old-school criteria—a known bottleneck for cannabis reform. By pulling his amendment, Clyde leaves the door open for the Biden administration’s Schedule III recommendation.

GCRS Is A Go

The inaugural Global Cannabis Regulatory Summit (GCRS), taking place in Washington, DC, from March 25-27, will unite influential policymakers, regulators, and industry figures to establish a global, harmonized regulatory framework for cannabis. Participants include US Congressional members, former government officials like James Cole and Kathleen Sebelius, and international representatives from more than 10 countries. Hosted by Artemis Growth Partners and Tenacious Labs, the Summit will foster collaboration among cannabis leaders, aiming to shape sustainable growth and improve patient outcomes worldwide.

AYR To Report

AYR Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) will hold a conference call on Thursday, March 6, 2025, at 8:30 a.m. ET to discuss its fourth quarter and full-year 2024 financial results. The call, led by Interim CEO Steven Cohen and CFO Brad Asher, will include a question-and-answer session.

Aurora Reports Q3

Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) reported record-breaking third-quarter fiscal 2025 results. Chairman and CEO Miguel Martin highlighted “all-time highs in global medical net revenue, net income, adjusted EBITDA, and free cash flow,” emphasizing Aurora’s strong cash position and debt-free cannabis business. The global medical cannabis segment drove the impressive top line, with international net revenue surging 112% to comprise 60% of medical revenues. Aurora’s plant propagation segment also grew 22%, bolstering the company’s operating model and growth trajectory.

🗞️ The News

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📺 YouTube

Allocating Billions in Cannabis: The Inside Story | Trade to Black

What we covered:

✅ On the latest episode of the Trade To Black podcast, hosts Shadd Dales and Anthony Varrell welcome in Peter Sack, the managing partner of Chicago Atlantic (NASDAQ:REFI). This episode delves into a company that has invested over $1.6 billion in the cannabis industry and has become a key financier for the marijuana sector.

We’ll learn about one of the leading lending companies in the overall cannabis industry and how their planning to deploy capital moving forward in the event cannabis reform by the Trump administration that will look to reschedule cannabis, plus provide banking reform for the industry in the event that the SAFER Banking bill is passed.