💸 The Tape

Congress has finally released its long-awaited spending package, and let’s just say the hemp industry is not popping champagne. In fact, if this bill passes, some of those hemp-derived beverages folks have been sipping to replace champagne may soon be illegal again.

Buried inside the new appropriations language is a sweeping federal recriminalization of many hemp-derived intoxicating products—including delta-8, delta-10, and a catch-all category of “anything else that gets you high, or is marketed like it does.” The intent: close the so-called 2018 Farm Bill loophole that allowed cannabinoids with intoxicating effects to be sold nationwide, from carefully curated dispensary fridges to that dusty rotating rack at the Chevron checkout.

Under current law, hemp is legal so long as it contains less than 0.3% delta-9 THC on a dry weight basis. The new definition would apply that limit to total THC, including isomers and analogs, while also banning synthesized cannabinoids and products that exceed 0.4 milligrams of total THC. For context, that’s less THC than many full-spectrum CBD tinctures on health store shelves.

Cue the panic.

Jim Higdon, co-founder of Cornbread Hemp, called the “CBD remains legal” messaging a “lie”, saying the milligram cap would make “100 percent” of full-spectrum CBD products illegal—along with the $30 billion hemp industry and 400,000 jobs tied to it. He also pointed a finger squarely at the alcohol lobby, which has been increasingly vocal about hemp beverages cutting into shelf space—and buzz share.

On the other side, the American Trade Association of Cannabis and Hemp (ATACH) applauded the bill, arguing that Congress is simply restoring the regulatory intent of 2018 and shutting down an unregulated market selling intoxicants to minors. Meanwhile, long-time prohibitionists are doing victory laps online, declaring the move a win for “public health.”

But the hemp fight wasn’t the only cannabis-related blow in the bill.

Despite years of bipartisan attempts, the final agreement omits language that would have allowed VA doctors to recommend medical cannabis to veterans in legal states. Both chambers had included versions of those provisions earlier—neither survived the final negotiations.

So, to summarize:
• Intoxicating hemp products may soon be illegal again.
• Full-spectrum CBD may be collateral damage.
• Veterans will still need to pay out of pocket to see a private doctor for a cannabis recommendation.

One industry gets re-prohibited.
Another population gets told to wait.
And Congress—somehow—manages to disappoint both sides of the cannabis debate at the same time.

Efficiency, at last.

📈 Dog Walkers

$VFF ( ▼ 0.34% ) Reports Numbers

Village Farms International delivered its third quarter results this week, and let’s just say the company is leaning fully into its glow-up era. Once best known for greenhouse-grown cucumbers and tomatoes, Village Farms now increasingly looks like a disciplined, margin-focused global cannabis operator — and Q3 2025 was their victory lap.

CEO Michael DeGiglio sounded almost celebratory as he walked through the numbers: record net income, record adjusted EBITDA, record cash flow. For a sector that has often defined success as “we lost less money than last quarter,” these results landed like the first sunny day after a six-month winter.

Let’s talk numbers:

• Consolidated revenue came in at $66.7 million, up 21% from the prior year.

• Net income from continuing operations hit $10.8 million — a sharp turn from the ($0.8M) loss a year ago.

• Cash flow from operations surged to $24.4 million, up from just $6.5 million last year.

• Adjusted EBITDA climbed to $20.7 million, representing 31% margins, compared to 8.5% in Q3 2024.

This wasn’t just incremental improvement — it was a restructuring of the company’s economic reality.

Canada was the star performer, where Village Farms’ strategic shift toward higher-margin products paid off in full bloom:

• Canadian cannabis revenue rose 29% to $46.6 million.

• Gross margins hit 56%, up from 26% — the kind of number most Canadian LPs only see in their dreams (or PowerPoints).

• Net income jumped 900% to $11.7 million.

• Adjusted EBITDA grew 306% to $19.3 million.

The international medical export business deserves its own applause — because those sales were up 758%. Yes, that number has three digits.

Meanwhile, Village Farms’ Dutch business continued to deepen its foothold in Europe’s most iconic cannabis market. The Drachten facility is now fully ramped, contributing $3.6 million in revenue and $1.3 million in adjusted EBITDA. A second, much larger facility is scheduled to come online in early 2026, increasing capacity five-fold — a starting gun for European expansion.

The U.S. hemp business (Balanced Health Botanicals) remains the underachiever in the family, with revenue dipping to $3.3 million and still posting small operating losses — but for now, Canada and Europe are carrying the growth torch.

With $87.6 million in cash on hand, strong cash generation, and expansion projects underway in Canada and the Netherlands, Village Farms signaled so much confidence that the board approved a share repurchase program.

In a cannabis market that’s still sorting winners from the merely surviving, Village Farms just made its case:
Operational discipline + international optionality = momentum worth paying attention to.

$TLLTF ( ▲ 11.29% ) Enters Restructure

What’s Going On Here: TILT Holdings has entered a formal restructuring process under the Companies’ Creditors Arrangement Act (CCAA) in British Columbia, a move designed to reorganize debt while keeping operations running. In effect, the company is overhauling its balance sheet, shifting ownership to creditors, and preparing to go private. Existing common shareholders will not retain equity once the process is complete.

Under the court-issued Initial Order, TILT receives a temporary stay from creditor actions and has appointed PricewaterhouseCoopers as Monitor. Management says that operating subsidiaries—including Jupiter Research—will continue without interruption. That stability benefits customers and partners, but offers little comfort to shareholders now facing a full equity wipeout.

To support the transition, TILT secured up to $2 million in bridge financing from its senior secured noteholders. The intended outcome is a Plan of Arrangement in which those noteholders become the new owners. A vote on the plan is expected later in November.

CEO Tim Conder emphasized that this restructuring follows 18 months of cost reductions and strategic refocusing, including $10 million in annual expense cuts, the sale of Massachusetts retail assets, and renewed investment in Jupiter Research. Jupiter’s European expansion and the return of founder Mark Scatterday are positioned as core elements of the go-forward strategy.

TILT’s challenge was clear: Jupiter remained a functioning growth asset, but the company carried a debt load sized for a much larger enterprise, while remaining public imposed about $2.5 million per year in compliance costs. With capital markets offering no viable refinancing path, restructuring became the only route to preserve the business—even at the expense of equity holders.

🗞️ The News

📺 YouTube

Cannabis Earnings Week: Winners and Red Flags | TTB Weekly Recap

What we will cover:

✅ How strong was cannabis earnings week — and what does it tell us about where the industry’s heading in 2026?

In this week’s TDR Trade To Black Weekly Recap, presented by Dutchie, host Shadd Dales breaks down a blockbuster week for cannabis investors — as the industry’s biggest players released fresh quarterly results. We’re talking Trulieve (CSE: TRUL | OTCQX: TCNNF), Green Thumb Industries (CSE: GTII | OTCQX: GTBIF), Curaleaf (TSX: CURA | OTCQX: CURLF), Canopy Growth (TSX: WEED | Nasdaq: CGC), Jushi Holdings (CSE: JUSH | OTCQB: JUSHF), MariMed (CSE/OTCQX: MRMD), LEEF Brands (CSE: LEEF | OTCQB: LEEEF), NewLake Capital (OTCQX: NLCP), GrowGeneration (NASDAQ: GRWG), and Aurora Cannabis (TSX: ACB | Nasdaq: ACB).

Trulieve led the headlines with $288 million in revenue, a 59% gross margin, and $458 million in cash — followed by a bold plan to redeem $368 million of 8% senior secured notes due 2026. Curaleaf’s “Return to Our Roots” plan showed steady U.S. growth and major traction in Europe. GTI and Canopy both tightened balance sheets, with profitability and cash flow trending positive. And for investors keeping score — LEEF Brands, Jushi, and GrowGeneration all posted margin expansion and improved cash generation.