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🚨Trump Pardons In Focus

Author

Anthony Varrell
February 21, 2025

GM Everyone,

There’s a growing wave of support for adult-use cannabis in Pennsylvania—70% of voters are on board, according to recent polls. But lawmakers are still sending mixed signals, even though Governor Shapiro appears ready to roll out the green carpet while some detractors claim there’s “no path forward.” Let’s hope the Keystone State doesn’t follow Florida’s footsteps by missing the mark when public backing is strong. For now, Pennsylvania’s cannabis play remains in the spotlight—until it isn’t.

A little more than a 5 minute read.

💸 The Tape

President Donald Trump, ever the disruptor, just dropped a curveball on the political and criminal justice spheres: He’s appointing Alice Marie Johnson—whom he previously pardoned after a lengthy prison sentence—as the White House’s official “pardon czar.” This newly minted position promises to streamline clemency operations, with Johnson calling the shots on who’s worthy of that elusive “Get Out of Jail Free” card. Political observers are already buzzing over the potential ripple effects for clemency seekers, especially in drug-related cases.

Johnson’s background is notable: once serving a life sentence for nonviolent cocaine trafficking, she was granted a commutation in 2018 and then a full pardon in 2020. Now, she’s pivoting from inmate to influencer. The Street has its eyes peeled—though not your typical market mover, a wave of pardons for nonviolent drug offenders could shift sentiment around cannabis. Big question: Does Johnson’s stance herald friendlier White House policy toward cannabis reform?

Is the “pardon czar” post a sign of softened stances, or just window dressing? For now, the markets remain uncertain, and cannabis companies wait to see which voice in the administration carries the most weight. Will Alice Marie Johnson’s story overshadow the skeptics—or will the old-guard coalition keep cannabis in the penalty box? Only time—and a lot more political maneuvering—will tell.

📈 Dog Walkers.

Garden State Status

Grown Rogue (CSE: GRIN, OTC: GRUSF) is expanding in New Jersey through its 44% stake in ABCO Garden State (with an option for another 26%) and its affiliation with Nile, a West New York dispensary. Sales of ABCO’s cannabis products kicked off December 10, already reaching over 35% of the state’s 205 dispensaries. CEO Obie Strickler notes steadily improving yields and strong customer reception, with initial prices remaining high compared to Oregon and Michigan. Meanwhile, Nile obtained its license on February 10, hosting a soft opening a week later and planning a March grand opening. Grown Rogue’s presence in this densely populated region aims to bring their craft-quality flower closer to Tri-State consumers.

Aurora Expands Down Under

Aurora Cannabis is broadening its Australian lineup with new medical cannabis pastilles, offering patients a discreet, convenient format. Executive VP Andre Jerome notes that this expansion meets growing demand in a key market. The three new products—THC Pomegranate Berry, Balanced Pineapple, and CBD Acai Berry—highlight Aurora’s global manufacturing edge and underscore its leadership in delivering premium cannabis solutions.

Trulieve Opens Up Shop In Columbus, OH

Trulieve Cannabis (CSE: TRUL, OTCQX: TCNNF) just launched its fifth Ohio dispensary at 601 South High Street, Columbus. Open daily from 8 a.m. to 9 p.m., the downtown location features walk-in and express pickup. CEO Kim Rivers calls this a milestone for both the city and nearby German Village, promising high-quality, affordable products and an elite retail experience in the heart of Columbus.

🗞️ The News

📺 YouTube

Key Metrics to Watch During Cannabis Earnings Season | Trade to Black

What we covered:

✅ On our latest Trade to Black podcast, host Shadd Dales will dive into the upcoming Q4 and full 2024 earnings season in the cannabis industry.

He’ll highlight five key areas investors should watch closely, with examples from Q3 2024 earnings from Trulieve (OTC: TCNNF), Green Thumb Industries (OTC: GTBIF), Curaleaf (OTC: CURLF), and Cresco Labs (OTC: CRLBF).

First, watch Revenue Growth. In Q3 2024, many cannabis companies, like Trulieve, reported flat revenues, partly due to the failure of adult-use marijuana to pass in Florida.

Second, focus on Gross Margin. Trulieve's gross margin was 61%, showing cost efficiency despite flat revenue.

Third, EBITDA is crucial. Curaleaf's adjusted EBITDA was $96 million, or 34% of revenue, but flat revenue trends raise questions about future profitability.