💸 The Tape

The U.S. Supreme Court has declined to hear Canna Provisions v. Bondi, a closely watched case challenging the constitutionality of federal marijuana prohibition, leaving intact the legal limbo facing state-legal cannabis businesses.

The justices considered the petition during a closed-door conference Friday, but an order list released Monday confirmed the case failed to secure the four votes required for certiorari. The challenge was brought by Massachusetts-based cannabis operators, who argued that federal prohibition of wholly intrastate marijuana activity violates the Commerce Clause.

The petition drew notable support, including amicus briefs from the Cato Institute, Americans for Prosperity Foundation, and a public-interest law firm raising property rights concerns. High-profile firm Boies Schiller Flexner LLP represented the plaintiffs, while the U.S. Department of Justice declined to weigh in, an unusual silence given the stakes.

The decision is notable because Justice Clarence Thomas has previously questioned whether continued federal prohibition is constitutionally sustainable amid widespread state legalization, calling the current approach a “half-in, half-out regime” that strains federalism.

At the heart of the dispute is Gonzales v. Raich (2005), the precedent allowing federal enforcement against intrastate cannabis activity. By passing on the case, the Court leaves that ruling untouched—for now.

For the cannabis industry, the takeaway is blunt: relief won’t come from the judiciary anytime soon. The pressure remains squarely on Congress and the executive branch to resolve a policy contradiction the Court chose not to confront.

MM OG

📈 Dog Walkers

$CGC ( ▼ 4.6% ) Acquires $MTLC.CSE ( ▲ 54.0% ) 

Canopy Growth Corporation (TSX: WEED, Nasdaq: CGC) is making a decisive move to consolidate strength in Canada, announcing a definitive agreement to acquire MTL Cannabis Corp. (CSE: MTLC, OTCQX: MTLNF) in a transaction valued at approximately $125 million on a fully diluted equity basis and $179 million in enterprise value.

Under the deal, MTL shareholders will receive 0.32 Canopy Growth shares plus $0.144 in cash for each MTL share, representing a roughly 45% premium to MTL’s recent trading average. Canopy will also assume and settle all MTL debt, simplifying the capital structure in the process.

Founded by Québec-based brothers Richard and Michel Clément, MTL has built a reputation as a craft-first, flower-focused operator, earning recognition as Canada’s #1 budtender-recommended brand in 2024. That credibility—and profitability—made MTL an attractive target. The company posted $84 million in TTM revenue, 51% gross margins, and $11 million in operating cash flow as of September 30, 2025.

Strategically, the acquisition is expected to propel Canopy into the leading position in Canada’s medical cannabis market, significantly strengthen its Québec footprint, and improve rankings across key adult-use flower and pre-roll categories. Management expects $10 million in annualized synergies within 18 months, supporting Canopy’s push toward positive adjusted EBITDA.

In short: Canopy gets premium flower, proven operators, and real cash flow—while MTL gets national scale.

$GRUSF ( ▲ 5.2% ) Is Producing In Jersey

Grown Rogue International Inc. (CSE: GRIN, OTC: GRUSF) is marking a productive milestone in the Garden State, providing an update on its New Jersey affiliate, ABCO Garden State, LLC, one year after its first commercial sale on December 11, 2024.

After a gradual ramp, Phase 1 operations are now hitting stride. Monthly output has climbed past 600 pounds of flower, exceeding the company’s original 500-pound target, with full sell-through over the past three months. More than 80% of sales now come from branded, packaged products, signaling growing retailer confidence and consumer traction.

A standout has been Yeti, Grown Rogue’s value-focused brand, which has gained momentum since its New Jersey debut this summer. Monthly Yeti sales—across flower and pre-rolls—jumped from roughly 96 pounds in June to 203 pounds in November, driven by rising brand recognition and shelf space expansion.

Construction of Phase 2 is underway and is expected to double capacity to more than 1,000 pounds per month, giving the company meaningful scale in one of the Northeast’s most competitive cannabis markets.

CEO Obie Strickler acknowledged the ramp took longer than planned but said the results validate Grown Rogue’s strategy: craft-quality flower at attractive prices, delivered with capital discipline. He added that lessons learned in New Jersey will directly inform future market expansions.

In short, ABCO is no longer warming up—it’s producing, selling, and scaling.

🗞️ The News

📺 YouTube

Trump Puts Cannabis Rescheduling Back in Focus | TTB Weekly Recap

What we will cover:

✅This week’s TDR Trade to Black Weekly Recap, presented by Dutchie, covers a moment that feels like a real inflection point for the cannabis industry.

At the top of the list is new reporting from The Washington Post and CNBC showing the Trump administration is actively moving toward rescheduling cannabis at the federal level. Internal discussions are focused on Schedule III — a shift that wouldn’t legalize cannabis outright, but would eliminate IRS 280E, expand federally regulated research, and materially change how U.S. cannabis companies operate and report earnings. It’s the biggest federal policy signal the industry has seen in decades.

Beyond Washington, the recap hits several other stories that matter. Pennsylvania’s adult-use debate remains stuck in the Senate, while Kentucky is finally rolling out its long-awaited medical cannabis program. We also break down new federally funded research published by the American Medical Association showing medical cannabis patients reduced opioid use over time — another data point that’s getting harder for policymakers to ignore.

On the business side, Trulieve Cannabis Corp. (CSE: TRUL | OTCQX: TCNNF) raised US$100 million to support expansion, while High Tide Inc. (Nasdaq: HITI | TSXV: HITI) pushed its retail footprint to 218 stores. LEEF Brands Inc. (CSE: LEEF | OTCQB: LEEEF) cleaned up most of its long-term debt, and Cronos Group Inc. (NASDAQ: CRON | TSX: CRON) made a bold move into Europe through the Netherlands’ regulated adult-use pilot. We also cover growth plans from Grown Rogue International Inc. (CSE: GRIN | OTC: GRUSF) and a new social-equity partnership from Ascend Wellness Holdings (CSE: AAWH.U | OTCQX: AAWH).