💸 The Tape

The Rescheduling Process Is Becoming A Circus

Judging from the flurry of motions and cross-motions, the DEA’s upcoming marijuana rescheduling hearing is shaping up to be the cannabis world’s version of a courtroom drama—minus the Netflix deal (for now). Earlier this week, Administrative Law Judge (ALJ) John Mulrooney told the DEA to speak up, pronto, regarding new allegations that it’s actually anti-rescheduling—even though it’s supposed to be championing the Biden administration’s plan to move cannabis from Schedule I to Schedule III.

So why all the fuss? Several pro-reform groups, including Village Farms International and Hemp for Victory, say they’ve discovered “new evidence” that the DEA has been chatting behind the scenes with folks opposed to the rescheduling plan. The complaint? Alleged clandestine communications, favoritism toward anti-cannabis participants, and even a suggestion that the DEA is ignoring the legal framework set out by its own Justice Department’s Office of Legal Counsel. Talk about a dysfunctional family dinner.

Cue the big question: Could the judge remove the DEA as the main sponsor of the rule altogether? That’s precisely what the pro-reform bloc wants. Their argument? If the agency can’t play fair—by its own rules, no less—how can anyone trust the final outcome?

Complicating matters, the DEA just filed a declaration that critics say reads like a laundry list of “marijuana-has-no-medical-value” talking points. The problem? That legal test was supposedly nixed by the Justice Department, leaving the DEA looking more than a little out of sync with the script. If true, that’s awkward for an agency whose official stance should align with the White House recommendation.

For investors eyeing the cannabis sector, the hearing’s outcome could be a genuine market mover. Rescheduling to Schedule III wouldn’t mean full legalization—sorry, no coast-to-coast pot shops overnight—but it would unlock certain tax benefits and lower research barriers. Translation: potential for bigger gains and new entrants in an already spirited field.

We’ll see how Judge Mulrooney responds to these new developments. Thus far, he’s revealed zero patience for clandestine communications, even calling out the DEA’s “critical blunder” in issuing subpoenas to FDA officials. Meanwhile, the pro-reform side is doubling down, pointing out that Colorado (a major cannabis trailblazer) wasn’t allowed in, while Nebraska—a staunch prohibitionist—gets a front-row seat.

If there’s one takeaway from this saga, it’s that cannabis policy is never dull. With the DEA’s official response due any minute and the hearing kicking off January 21, get your popcorn—this regulatory drama could ripple across the entire U.S. cannabis market.

📈 Dog Walkers

Trulieve Expands In AZ

Trulieve Cannabis continues its southwestern expansion with a brand-new dispensary in Maricopa, Arizona. Officially opening Jan. 11, the store at 44405 West Honeycutt Avenue will offer a range of in-house brands and partner favorites. CEO Kim Rivers calls this a milestone in delivering an “elite customer experience.” Enjoy food trucks and giveaways as Trulieve raises the bar on desert cannabis.

Vertosa Stacks The Deck

Vertosa welcomes Dr. Gul Konuklar as VP of R&D, bringing years of product innovation, plant design, and process optimization experience. With 15 published patents and FDA nods to her credit, she’s poised to fortify Vertosa’s cannabis infusion technology. CEO Ben Larson calls her addition “a significant milestone,” while CSO Harold Han praises her “profound expertise.” New standards in cannabis technology.

🗞️ The News

Ukraine Officials Give Final Approval To Country’s First Medical Cannabis Products Under New Legalization Law

Opportunities abound with distressed marijuana businesses – but use caution

Ohio reports $242 million in recreational marijuana sales in first 5 months

📺 YouTube

DEA Rescheduling Showdown: Boris Jordan Talks 2025 Cannabis Trends

What we covered:

✅ On our latest Trade to Black podcast, Shane Pennington, Partner at Porter Wright Morris & Arthur LLC and counsel to Village Farms (NASDAQ: VFF), will join us to talk about the latest involving the rescheduling of cannabis.

Earlier this week Village Farms jointly filed a request to reconsider their previous motion to disqualify and remove the DEA from its role in the proposed rescheduling of marijuana from a Schedule I to a Schedule III drug. The new request includes evidence claiming that the DEA’s negative attitude towards the proposed rule has hurt the chances of rescheduling.

Pennington believes this new evidence shows that the DEA is using its power to undermine the process and block the Schedule III proposal.

Plus, Curaleaf (OTC:CURLF) Chairman and CEO Boris Jordan will join us. He'll discuss whether or not he's had recent conversations with the new Trump administration about the cannabis industry and what changes we can expect in 2025.

One of the biggest issues for the cannabis industry is access to institutional capital. We'll ask Jordan if he believes that 2025 will finally be the year when proper legislation is put in place for the cannabis industry and marijuana stocks.