💸 The Tape

Virginia lawmakers just sent an identical adult-use cannabis bill through both chambers, hoping to finally open regulated marijuana sales as early as May 1, 2026. But we should brace for headwinds: Gov. Glenn Youngkin (R), citing “health and safety” concerns, has already signaled another veto—identical to what he did last year with nearly the same legislation. In effect, Virginia’s cannabis market looks poised to remain stalled, despite estimates of an illicit trade topping $3 billion.

Under the current proposal, adults 21 and older could buy up to 2.5 ounces per transaction from state-licensed retailers. A potential 11.625 percent state tax, plus an optional 2.5 percent local levy, underscores the revenue upside that a legal market could provide. Still, Youngkin’s continued hardline stance continues to create uncertainty for industry stakeholders. The governor, ineligible for reelection, has argued that “the proposed legalization of retail marijuana in the Commonwealth endangers Virginians’ health and safety.” Reform advocates, however, view regulating cannabis as a public safety tool, especially given the sprawling illicit marketplace.

Proponents like Sen. Aaron Rouse (D) and Del. Paul Krizek (D) are touting a robust licensing regime, with canopy-size restrictions, face-to-face transactions only, and tiered cultivation rules designed to level the playing field. Additionally, new criminal penalties would crack down on underage cannabis sales, illegal extraction processes, and gray-market “gifting.” An equity-focused microbusiness program aims to uplift communities disproportionately affected by prohibition, channeling 60 percent of leftover tax revenue into a Cannabis Equity Reinvestment Fund.

Cannabis insiders note that Youngkin’s posture is out of step with several Republican governors in other states, who have taken a more moderate tack. Meanwhile, illicit shops and unregulated delivery networks keep meeting consumer demand—much to the frustration of licensed operators and public health officials alike. As these bills head to Youngkin’s desk, many wonder if pushing them for a second time could strengthen the case for regulated sales under future leadership.

For those at home keeping tabs on Virginia’s cannabis potential, the near-term outlook is rocky. Market entry plans may need to sit on ice unless the governor has a sudden change of heart—or unless lawmakers muster the votes to override a veto, which seems unlikely. For now, Virginia’s adult-use push remains a high-stakes game of legislative chicken, with Gov. Youngkin’s pen threatening to slam the brakes on legalization for another year.

📈 Dog Walkers

LEIN Secures Fresh Powder

Chicago Atlantic BDC just secured a $100 million senior credit facility from an FDIC-insured lender, set to mature in March 2028 at SOFR plus 3%. Executive Chair and Co-CIO Scott Gordon highlights the deal’s flexibility, noting it expands liquidity to “capitalize on the robust lending opportunities” in their pipeline. The financier, formerly known as Silver Spike Investment Corp., rebranded in October after acquiring Illinois-based Chicago Atlantic Loan Portfolio. Meanwhile, shareholders received a 34-cent dividend for Q4, a 36% bump over the prior quarter’s payout. Originally a cannabis-focused SPAC, the firm broadened its strategy to encompass non-cannabis, health, and wellness investments.

High Tide Kicks Off In Hamilton

High Tide Inc. (Nasdaq: HITI) is making bold moves, opening its 192nd Canna Cabana store in Hamilton, Ontario on February 15. This prime downtown location reflects the retailer’s high-traffic strategy, appealing to shoppers with unmatched prices and product variety. Meanwhile, Hamilton continues its economic evolution from steel to a hub for advanced manufacturing, life sciences, and more—perfect for capturing fresh cannabis consumers. CEO Raj Grover highlights the company’s robust free cash flow, fueling expansions, including Germany’s imminent acquisition of Purecan. Expect High Tide to chase in Germany the same market dominance it’s achieved across Canada.

AYR Shakes Up Florida Footprint

Ayr Cannabis Dispensary, owned by Ayr Wellness (CSE: AYR.A, OTCQX: AYRWF), expands and streamlines operations with new store openings in Florida and Ohio, plus a strategic closure in Key West. The Miami-Midtown shop, five years in the making, is the first medical dispensary approved inside Miami city limits. Meanwhile, Niles becomes the fourth Ohio location, featuring ample parking, a dedicated patient line, and house brands like kynd, Later Days, and HZ. Although the Key West closure was “difficult,” President George DeNardo sees it as a step toward core retail efficiency. For investors, these moves underscore Ayr’s unwavering commitment to delivering robust growth across two of its pivotal state markets, immediately.

Canopy Expands Beverage Line

Canopy Growth (TSX: WEED, Nasdaq: CGC) is fueling its Canadian cannabis beverage segment with new additions to its Deep Space Propulsion lineup: Rocket Root Beer and Charged Cream Soda. Each 355ml can touts 10mg THC, 10mg CBG, and under 30mg natural caffeine, launching a next-level infusion experience. President Dave Paterson calls these premium flavours “home-grown innovation,” delivering smooth vanilla cream or rich root beer bite. With these canna-laced sodas, Canopy Growth aims for bold taste and balanced effects to stand out in the market. Now available in select regions, Deep Space beverages promise an elevated sip that cements Canopy’s leadership among Canada’s cannabis drink aficionados.

🗞️ The News

Trump Welcomes Return Of Medical Marijuana Patient Freed From Russia At White House, Without Mentioning U.S. Cannabis Prohibition

Cannabis testing lab fraud can be curbed if industry is ‘part of the solution’

High Tide Opens 77th Canna Cabana Location in Ontario

Canopy Growth Expands Deep Space Propulsion Beverage Lineup with Two New Flavours: Rocket Root Beer and Charged Cream Soda

📺 YouTube

What Does Terry Cole's DEA Leadership Mean for the Cannabis Industry? | Trade to Black

What we covered:

✅ On our latest Trade To Black Podcast at 4 PM EST, Shadd Dales and Anthony Varrell will be joined by Beena Goldenberg, CEO of Organigram (NASDAQ: OGI), to discuss their latest earnings. Organigram reported a 17% increase in net revenue to $42.7 million for Q1 Fiscal 2025, up from $36.5 million in the same period last year. International sales grew by $2.3 million, and adjusted EBITDA rose to $1.4 million from $0.1 million.

Additionally, Trent Woloveck, Chief Strategy Director from Jushi (OTC: JUSHF), will join us to talk about the new appointment of Terry Coleas the head of the DEA under the Trump administration. Jushi has a strong presence in the Virginia medical cannabis market, leveraging its background to build a relationship with the Cannabis Control Authority (CCA). This relationship became even more significant with Cole's appointment, as he previously served as Virginia's Secretary of Public Safety and Homeland Security.