💸 The Tape

In yet another episode of “The Federal Government Can’t Agree With Itself,” the U.S. Department of Agriculture (USDA) appears to have gone rogue—or maybe just honest—by labeling Cannabis sativa as “medicinal” in its own phytochemical database. That’s right: the same plant that the federal government insists has no accepted medical use is being described by one of its own agencies as, well, medicine.

The listing lives in the USDA’s Dr. Duke’s Phytochemical and Ethnobotanical Databases, a well-respected guide to the medicinal and cultural uses of plants. It’s a quiet contradiction to marijuana’s current Schedule I status under the Controlled Substances Act (CSA), where it sits alongside heroin, far away from aspirin and insulin.

Meanwhile, over at the Drug Enforcement Administration (DEA), the long-promised rescheduling review is still lost in bureaucratic limbo. Six months after a judge hit pause on hearings amid accusations of DEA collusion with anti-cannabis witnesses, the agency still hasn’t managed to find a green light—or a clue.

The feds are in full “hurry up and wait” mode. President Trump’s pick for DEA administrator, Terrance Cole, has vaguely promised to make cannabis rescheduling a “priority,” while his predecessor was firmly rooted in the “gateway drug” era. But with Acting Administrator Robert Murphy now in charge, there’s no clear timeline—or enthusiasm.

Meanwhile, advocates like NORML’s Paul Armentano and SSDP’s Kat Murti are increasingly exasperated. “It is growing impossible for federal agencies to deny the reality that cannabis is medicine,” said Armentano. Murti was more blunt: “It’s a legal farce.”

As if to further underline the irony, the Department of Health and Human Services (HHS) already concluded in 2023 that cannabis does have accepted medical use. Even NIDA, the government’s top drug research body, concedes cannabis helps with pain and may have “additional therapeutic uses.”

Still, the DEA seems locked in a political haze, resistant to movement. Congress, of course, could resolve this circus with legislation—but don’t hold your breath. Until then, it’s a battle of one federal agency’s common sense versus another’s bureaucratic purgatory.

As for the USDA? Let’s just say it quietly passed the joint—while the DEA’s still stuck holding the bag.

📈 Dog Walkers

$HITI ( ▼ 2.0% ) High Tide Locks In Debt Financing From $CRON ( ▼ 1.95% )

What’s Going On Here: High Tide Inc. (Nasdaq: HITI) just locked down $30 million in convertible debt from Cronos Group Inc. (Nasdaq: CRON) via a Junior Secured Loan, marking another strategic vote of confidence in the cannabis retailer’s ambitious expansion plans.

The loan, which carries a modest 4% annual interest rate and no prepayment penalties, will fuel High Tide’s push to surpass 300 stores in Canada and support international growth. The loan is convertible (with High Tide’s blessing) into common shares at $4.20/share, and comes with warrants for 3.8M shares exercisable at $3.91, a 25% premium to the 30-day VWAP.

🔑 Key Details:

• Term: 5 years

• Use of Proceeds: 100% growth capital

• Security: 3rd lien on certain assets

• No dilution unless converted

Cronos CEO Mike Gorenstein highlighted the deal as a play for retail ecosystem strength, not just ROI. High Tide CEO Raj Grover emphasized it as a second major LP endorsement in recent months, reflecting High Tide’s rising stature as a "key industry player" reshaping the Canadian cannabis landscape.

$CNTMF ( ▲ 17.59% ) FLUENT Settles Up In Shares

What’s Going On Here: FLUENT Corp. (CSE: FNT.U | OTCQB: CNTMF) just announced it's issuing 2.75 million common shares to its directors to wipe out $137,500 in unpaid director fees from Q2 2025. Instead of cutting checks, the cannabis company is leaning on equity—at $0.05 per share, the June 30 closing price on the CSE.

This “shares-for-debt” move is a classic cost-control play and falls under Canada’s Multilateral Instrument 61-101 rules for related-party transactions. But FLUENT says it qualifies for an exemption—because the dollar value is under 25% of market cap, there's no need for a formal valuation or minority shareholder approval.

Why the rush? The company says it didn’t file the usual 21-day material change report because the deal details weren’t finalized until late, and management wanted to reduce liabilities ASAP. The issued shares will carry a four-month hold period.

In short: FLUENT is paying its board in stock, trimming debt, and preserving cash while staying compliant.

$GLASF ( ▼ 3.51% ) Glass House Inks Major Refi

What’s Going On Here: Glass House Brands (CBOE CA: GLAS.A.U | OTCQX: GLASF) just wrapped a major recapitalization, issuing nearly $77.5M in Series E Convertible Preferred Stock to clean house on its costly Series B and C shares. The new Series E pays a 12% dividend (quarterly, not PIK-heavy), a big step down from the eye-watering 22.5% combo rate of the legacy preferreds.

The shares convert at $9.00 into GH Group Class B, ultimately exchangeable 1:1 into Glass House's public equity. Redemption rights kick in after five years if shares are trading above $12, with 1M+ daily volume and U.S. major exchange listing.

🔹 75%+ of B/C holders opted in, while the rest were fully redeemed for just $4.1M in cash.
🔹 $14.7M in fresh capital came from new investors.
🔹 Insiders (officers, directors, >10% holders) accounted for $12.9M of the new Series E round.

Glass House used MI 61-101 exemptions for related-party deals, noting the urgency of the transaction and its relatively small size vs. market cap.

Net-net: This is a textbook deleveraging play. Lower cash burn, cleaner cap table, and more aligned incentives as Glass House gears up for what’s next.

🗞️ The News

📺 YouTube

U.S. Builds Momentum, Germany Shows Caution on Cannabis Part 1 | TTB Powered by Dutchie

What we will cover:

✅ On our latest Trade to Black, we take a closer look at two policy stories developing in the U.S. and Europe—and what they could signal for the industry moving forward.

In Washington, D.C., Gretchen Gailey joins Shadd Dales and Anthony Varrell to share her perspective after a week of meetings with GOP congressional leaders and a private dinner centered on cannabis rescheduling. She was also with Ricky Williams and the Highsman team during last weekend’s White House visit, where cannabis reform was a key topic of discussion.

While there’s no official update yet, Gretchen breaks down the tone and narrative she’s hearing in D.C.—how Republicans in the Trump orbit are viewing cannabis policy right now, and whether there’s a genuine appetite to move rescheduling forward. The conversations may not be decisive, but they’re happening—and that in itself matters.

Then we turn to Germany, where Franziska (Franzi) Katterbach, Partner at Oppenhoff & Partner and a leading voice on life sciences and healthcare law, unpacks the country’s new draft cannabis law. Franzi explains what the draft proposes, how it could reshape medical cannabis regulations, and why some operators are concerned about stricter pharmaceutical supply-chain requirements and regulatory scrutiny—particularly around telemedicine.