💸 The Tape

Last week, Ohio quietly flipped the switch on one of the most anticipated — and most awkwardly executed — adult-use cannabis rollouts in recent memory. After voters overwhelmingly approved Issue 2 in November 2023, the state spent 2024 and early 2025 doing what Ohio does best: arguing, delaying, amending, and then finally passing a 1,000-page regulatory framework that reads like someone tried to merge a liquor-control manual with a Phish setlist.

On March 7, 2026, the Ohio Division of Cannabis Control (DCC) formally adopted the final rules that will govern recreational sales starting August 2026 (yes, we’re still waiting — blame the legislature’s love affair with “study committees”). The result is a regulatory tapestry that is equal parts progressive, paranoid, and pure Ohio.

Let’s start with the good news, because there actually is some. Ohio will allow home cultivation — up to six plants per adult, 12 per household — with no state tracking or licensing required for personal grows. That’s more permissive than most states that legalized before Ohio. Patients and caregivers keep their medical privileges, including higher possession limits and lower taxes. Delivery is permitted (with restrictions), and social consumption lounges are being studied rather than banned outright — a small but meaningful olive branch to the “let adults be adults” crowd.

The tax structure is also surprisingly reasonable: 10% excise tax on retail sales, plus standard sales tax (averaging 7.25%), with revenue funneled to host communities (8%), mental health/addiction services (8%), public schools (36%), and a general fund catch-all. No 280E-style federal tax handcuffs apply to state-legal sales, so Ohio operators won’t be paying 70% effective rates like their California or Illinois counterparts.

Now the weird part — and Ohio being Ohio, there’s always a weird part.

The state is keeping a bizarre dual-license system that effectively creates two separate retail tracks: one for medical (Type 10 licenses) and one for adult-use (Type 9 licenses). Medical patients get priority access, lower taxes (5% vs. 10%), and the ability to buy higher-THC products. But here’s the kicker: most existing medical dispensaries were automatically granted dual-use status, while new adult-use entrants face a lottery and higher fees. The result? A two-tier market where medical patients (and the dispensaries that serve them) enjoy a structural advantage — at least until the lottery winners open.

Perhaps the most head-scratching provision is the ban on public consumption lounges unless a locality opts in — and even then, lounges must be 1,000 feet from schools and churches. Ohio lawmakers apparently believe that the same people who can legally buy a 35% THC vape pen cannot be trusted to smoke it indoors in a designated lounge. Public consumption remains a misdemeanor, meaning Ohio has legalized home growing, retail sales, and delivery… but still treats a joint on a park bench like a felony lite.

Advertising restrictions are predictably draconian: no billboards within 500 feet of schools or churches, no ads on kids’ TV/radio, no celebrity endorsements, and — in a move that feels like peak Ohio — no “mascots or cartoon characters” that could appeal to minors. Sorry, no Weed Gandalf or Stoner SpongeBob campaigns.

Social equity made it into the final rules, but in classic half-measure fashion. The program sets aside 15% of new adult-use licenses for social equity applicants (defined as residents of disproportionately impacted communities or their immediate family). There’s also a $2 million grant fund for startup costs — nice, but small potatoes compared to Illinois ($50M+) or New York ($200M+). Many advocates quietly grumbled that the program feels more like a participation trophy than a real leveling of the playing field.

Perhaps the most Ohio thing about the rules is the bureaucratic flourish: every dispensary must post signs warning that “cannabis impairs judgment and reaction time” and that “use while pregnant may cause birth defects.” These signs must be in English and Spanish, at least 8.5×11 inches, and placed at every entrance and checkout counter. Because nothing says “we trust adults to make decisions” like mandatory wall posters.

Despite the quirks, the framework is functional. Ohio will allow vertical integration (growers can own dispensaries), home delivery, and online ordering with in-store pickup. Consumption lounges may eventually arrive if localities opt in. The state’s 10% excise tax is moderate compared to Illinois (25% + local) or California (15% + local). And the decision to grandfather most existing medical dispensaries into dual-use status ensures that the market won’t collapse under a flood of new entrants.

For patients and consumers, the wait is almost over. For the industry, the real test begins now: can Ohio avoid the price wars and oversupply that plagued Michigan and Illinois? Can it build a stable, profitable market while navigating federal uncertainty? And will the state’s famously cautious regulators actually let the market breathe?

Gov. Mike DeWine — who opposed Issue 2 and tried to gut it via the legislature — now has until late April to sign or veto the final rules. Most insiders expect a signature; he’s already lost the political fight and has little to gain from another veto showdown.

When the first adult-use sale rings up in August 2026, Ohio will become the 25th state (plus D.C.) with legal recreational cannabis. It won’t be the smoothest launch — this is Ohio, after all — but it will be a launch. And for a state that once arrested people for possessing a single joint, that’s progress worth toasting.

📈 Dog Walkers

$CWBHF ( ▼ 14.06% ) Welcomes Regulations

In a quiet but potentially game-changing move for the hemp industry, Charlotte’s Web Holdings, Inc. (the “Company” or “Charlotte’s Web”) has publicly praised the Centers for Medicare & Medicaid Services (CMS) for its leadership in advancing structured access to eligible full-spectrum hemp products through current CMS Innovation Center models.

The CMS Substance Access Beneficiary Engagement Incentive (BEI) guidance now explicitly defines eligible hemp products to include orally administered items containing up to 3 mg per serving of tetrahydrocannabinols (THC). This threshold comfortably accommodates non-intoxicating, full-spectrum hemp-derived CBD products — the very category Charlotte’s Web has long championed as the gold standard for safety, consistency, and therapeutic potential.

CEO Bill Morachnick expressed appreciation for the forward-looking framework: “We are grateful for CMS’s thoughtful approach in expanding access and creating space for responsible, evidence-based hemp wellness conversations in clinical settings. This program aligns with our mission to advance safe, high-quality, science-backed hemp options for consumers, and we remain committed to supporting sensible legislation that protects patients and strengthens the integrity of our industry.”

The BEI model does not mandate coverage but creates a structured pathway for patient-provider discussions around eligible hemp products. By setting clear THC-per-serving limits and emphasizing quality and safety, CMS is reinforcing science-driven policymaking that prioritizes consumer protection while allowing room for non-intoxicating full-spectrum options.

For Charlotte’s Web — the market leader in CBD hemp extract wellness products — this development is a meaningful validation. Full-spectrum products retain a broader cannabinoid and terpene profile than isolates, often delivering what many users describe as an “entourage effect.” The 3 mg THC threshold ensures products remain non-intoxicating while preserving that profile.

The Company vows to continue advocating for policies that uphold safety, transparency, and access. As federal conversations around hemp and CBD evolve — including potential Medicare coverage pilots — Charlotte’s Web is well-positioned to support evidence-based expansion of trusted, compliant products.

In an industry long seeking regulatory clarity, this CMS move is a step toward integrating high-quality hemp wellness options into mainstream healthcare discussions — one patient and provider conversation at a time.

🗞️ The News

📺 YouTube

FDA Moves Closer To CBD Market Regulation | TTB Weekly Recap

What we will cover:

✅ On the latest TDR Weekly Recap presented by FRE Nicotine Pouches, host Shadd Dales breaks down another busy week across the cannabis industry — from federal policy and new data to earnings and company developments.

While there’s still no official update on U.S. cannabis rescheduling, the broader conversation continues to shift. New data highlighted by the DEA shows long-term declines in youth cannabis use, challenging one of the core arguments that has supported prohibition for decades.

At the same time, the FDA has submitted a CBD compliance framework for White House review, signaling that federal oversight of the CBD market may finally be taking shape.

On the business side, several companies made headlines this week.

High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) reported record revenue of $178 million and continued growth in its Cabana Club membership, now exceeding 2.5 million members.

Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) announced a Phase I clinical trial focused on THC capsules for anxiety, marking another step toward pharmaceutical-style cannabis development.