💸 The Tape

Legal Eagles Are Flying Around Rescheduling

In a plot twist only found within the cannabis industry, Village Farms International, Inc. (NASDAQ: VFF) and Hemp for Victory have filed a joint motion to boot the Drug Enforcement Administration (DEA) out of the cannabis rescheduling process. Yes, you read that right—the cannabis companies are telling the DEA to take a hike from its own proceedings.

The Drama Unfolds

Last night, the two companies announced their bold move to disqualify and remove the DEA from defending the Proposed Rule to reschedule marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act. They're essentially saying, "DEA, you're not just part of the problem—you are the problem."

What's the Beef?

The filing asserts that the DEA failed to maintain a complete record and ensure fairness and transparency. Moreover, they claim the DEA is "compromised" and should be barred from participating in the proceedings. In corporate terms, it's like accusing the auditor of cooking the books while they're still holding the pen.

Shane Pennington, partner at Porter Wright Morris & Arthur, LLP and counsel to the parties, didn't mince words: “It is our belief that the DEA cannot lawfully act as the proponent of the Proposed Rule and that its actions throughout the administrative process demonstrate that it opposes the proposed transfer of marijuana to Schedule III and is therefore compromised."

Calling in the Big Guns

The companies are pushing for the Department of Justice (DOJ) to replace the DEA as the proponent of the Proposed Rule. It's akin to asking for new management because the current team isn't hitting quarterly targets—or, in this case, not playing fair in the regulatory sandbox.

They also want the record to include all requests for hearing and participation filed with the DEA, a record of the Administrator's decisions on participant designations, and any ex parte communications between the DEA and third parties. Transparency is the name of the game, and they're demanding full disclosure—no more SAM/DEA after hours pow wows.

Preserve Those Emails!

In a move that would make any compliance officer sweat, Village Farms and Hemp for Victory have requested that Smart Approaches to Marijuana (SAM) and the DEA be ordered to preserve their records. They allege "unlawful conduct" that has compromised the DEA’s participation. Translation: "We think you've been naughty, and we want the receipts."

Voices from the Front Lines

Robert Head, retired Army infantryman and Board Chair of Hemp for Victory, highlighted the stakes: “A majority of American citizens continue to overwhelmingly support having better access to alternative medicines like cannabis... This rescheduling process needs to pave the way for a healthier road ahead, a road that cannot continue to be blocked by the deep entrenchment of bureaucracy in our administrative processes.”

Michael DeGiglio, retired Navy captain and CEO of Village Farms, added, “We continue to face burdensome challenges... that not only restrict us from advancing access to cannabis for millions of people but have also created near-insurmountable institutional barriers to clinical research involving cannabis."

The Take

This bold legal maneuver is a high-stakes gambit that could have significant implications for the cannabis industry. If successful, it might expedite the rescheduling of cannabis, and move us forward.

However, challenging a federal agency is no small feat. The DEA isn't known for stepping aside gracefully. We should keep an eye on how this legal tussle unfolds, as it could impact regulatory timelines and the broader market landscape.

Bottom Line

In the ever-evolving saga of cannabis legalization, Village Farms and Hemp for Victory are not just sitting on the sidelines—they're taking the fight directly to the DEA's doorstep. It's a daring move that underscores the growing frustration within the industry over regulatory hurdles.

Whether this results in meaningful change or just more bureaucratic back-and-forth remains to be seen. But one thing's for sure: the cannabis industry is tired of waiting, and it's starting to make some real noise.

📈 Dog Walkers

Trulieve Marches Forward In Florida

Trulieve Cannabis Corp. is rolling out the green carpet with new medical dispensaries in Dania Beach and Spring Hill, Florida. Grand openings on November 22 promise not just discounts but perhaps a high point for local economies. CEO Kim Rivers is thrilled to expand in Broward and Hernando Counties, aiming to solidify Trulieve's dominance in Florida's medical cannabis market. With extended hours and express pickup, they're making access as smooth as their products. Stocking a plethora of in-house brands like Alchemy and Muse, plus exclusive partnerships with the likes of Khalifa Kush and Alien Labs, Trulieve is setting the bar high—pun intended.

Canopy Growth Gets Infused

Canopy Growth Corporation (TSX: WEED, NASDAQ: CGC) is lighting up the Canadian cannabis scene with a new addition that's sure to turn heads—and perhaps spin them a little. Through an exclusive licensing deal, they're bringing California's award-winning Claybourne Frosted Flyers Infused Pre-Rolls north of the border. Available in five tantalizing flavors—Blue Dream, Strawberry Cough, Pineapple Express, Grape Gasolina, and Banana OG—these high-potency pre-rolls aim to offer nonstop flavor from start to finish. With Canada's pre-roll market puffing up by 94% since 2022, Canopy's timing couldn't be better. It's a strategic move to cement their leadership in the rapidly expanding infused segment, showing focus when it comes to innovation and market growth.

Aurora Cannabis Expands Product Portfolio

Aurora Cannabis Inc. (NASDAQ: ACB) is lighting up the Canadian cannabis scene with a fresh lineup that's sure to turn heads—and perhaps mellow them out. With brands like Greybeard, San Rafael '71, and Tasty's, Aurora is rolling out products that promise both flavor and intensity, catering to the discerning tastes of cannabis connoisseurs. Senior VP Geoff Hoover touts their "world-class science and superior cultivation," aiming to make Aurora the go-to name for quality and trust. From Greybeard's Banana Gas Pure Live Resin Vape, offering notes of "gassy bananas," to Tasty's Grape 510 Vape delivering 1000mg of THC with a sweet tang, Aurora seems poised to keep consumers—and investors—highly engaged. It's a bold play in a competitive market, but Aurora appears ready to blaze the trail.

👾 Number Of The Day

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🗞️ The News

Village Farms International and Hemp for Victory File Joint Motion to Disqualify DEA from Oversight of Proposed Marijuana Rescheduling Process

Aurora Cannabis Expands Innovative Recreational Product Portfolio

Canopy Growth Launches Claybourne Infused Pre-Rolls in Canada

Democratic Senators See Pathway For Marijuana Banking Bill In Lame Duck, But Identify Key Obstacles

GOP Senator Says Marijuana Banking And Rescheduling Are ‘Half-Assed’ Measures, Arguing Cannabis Should Be Legally Regulated Like Alcohol And Tobacco

US cannabis license numbers decline in Q3 despite rapid growth in emerging markets

📺 YouTube

States Act Revival: Congresswoman Nancy Mace Leads Cannabis Reform Change

What we covered:

✅ On our latest Trade To Black podcast, at a special time beginning at 5 PM EST, South Carolina Congresswoman Nancy Mace will join us to discuss cannabis reform and why she feels confident that progress can be made, based on recent appointee announcements by the Trump administration last week.

In a tweet on X four days ago, Mace posted: “Three years ago, we shook up Congress with the States Reform Act – common-sense cannabis reform. Now, with Republican Matt Gaetz tapped as AG by President Donald Trump, a fearless ally for freedom and reform, it’s time to finish what we started.”

We’ll find out and learn how important cannabis reform will be in Washington and what those following the industry can expect next.

Plus, Cannabis Capital Markets advisor Seth Yakatan will join us to kick off his weekly Wednesday segment, discussing the latest financial news in the cannabis industry, the winners and losers from the latest earnings season, and the debt maturity wall – and why he thinks it should concern investors.