💸 The Tape

If you had “Donald Trump potentially backing federal marijuana legalization” on your 2025 bingo card, congratulations—you might just be onto something. In a surprising twist, longtime drug policy reform advocate Howard Wooldridge recently revealed that a White House staffer invited him to submit a proposal on why the former president should support federal legalization. This development, while unexpected, might just be the strategic political move Trump needs heading into another election cycle.

Let’s be clear: Trump has been unpredictable on cannabis. On one hand, he’s historically championed a states’ rights approach, even backing a Florida legalization proposal. On the other hand, he’s appointed some staunch anti-cannabis officials and largely avoided the topic despite securing the release of an American jailed in Russia over marijuana possession. So, is this a genuine policy shift, or just another attempt to throw a curveball into the political playbook?

Wooldridge, co-founder of Law Enforcement Against Prohibition, is no stranger to cannabis advocacy. His pitch to Trump’s team, expected this week, will focus on the political advantages of ending federal prohibition. The key selling point? Framing it as a Republican-friendly states’ rights issue, appealing to conservative values while simultaneously attracting younger and libertarian voters who overwhelmingly support legalization.

And let’s not forget the financial angle—tax revenue from legalized cannabis is booming in states that have embraced reform. With Trump’s business-first mindset, the prospect of a billion-dollar industry thriving under his leadership could be compelling.

Here’s where things get interesting: if Trump gives the nod, GOP lawmakers—many of whom have historically opposed cannabis reform—could suddenly fall in line. As Wooldridge put it, “Republican members of Congress are not going to resist the will of Donald Trump on essentially anything.” That means the biggest roadblock to federal legalization—Republican leadership’s resistance—could vanish overnight with a simple endorsement from the party’s figurehead.

Of course, there’s still resistance in Trump’s orbit. His recent picks for key federal positions, including the nominee for DEA chief, have voiced strong concerns about marijuana’s risks. Meanwhile, Robert F. Kennedy Jr., the newly confirmed HHS secretary, has offered mixed signals—expressing past support for legalization while simultaneously warning about high-potency cannabis dangers and ambiguous statements like “we will leave it up to the science”.

Looking at this objectively, this is another nice headline that leaves a lot to be desired. Someone on Twitter summed it up perfectly last night: "This is the equivalent of someone running into you at a conference, handing you a pitch deck, and you smiling while saying, ‘Sure, I’ll review it and get back to you.’"

📈 Dog Walkers.

Connecticut Is Under Pressure

What’s Going On Here: Connecticut has the worst per capita cannabis sales in New England and the highest prices, with a gram costing $10.62 compared to $4.44 in Massachusetts. Total sales dropped from $274 million in 2023 to $199.9 million in 2024. In December, per capita sales were just $54.40, far behind Massachusetts’ $233.16. While Connecticut’s total sales ranked mid-tier at $200 million, it still lagged behind Maine ($243.9M), Massachusetts ($1.6B), and New Jersey ($950.7M), according to a legislative report.

Why Should You Care: Connecticut has a real problem when it comes to selling cannabis, which, to be completely honest, doesn’t come as a surprise. With a population of only 3.6 million people and many of its residents working outside the state, expectations have always been muted for this minuscule Northeast market. Despite some turbulence there are operators that continue to shine in this market.

NewLake Reports Full Year Earnings

Whats Going On: NewLake Capital Partners (OCTQX: NLCP) reported year-over-year growth in key financial metrics for 2024 despite industry challenges. Annual revenue rose 6% to $50.1 million, with net income reaching $26.1 million. FFO and AFFO grew 5.1% and 7.5%, respectively. The company increased its annual dividend to $1.70 per share, an 8.3% rise. It expanded its portfolio with acquisitions in Connecticut and Ohio, committed $15.1 million to facility improvements, and extended its stock repurchase program through 2026. A first-quarter 2025 dividend of $0.43 per share was declared, reflecting ongoing confidence in its financial stability.

Why You Should Care: NLCP delivered again with financial metrics going up and to the right and another quarter of a solid dividend issued. In a world of mostly stagnant and declining financial metrics CEO Anthony Conniglio has delivered another year of steady growth for the portfolio and distributions to shareholders.

🗞️ The News

📺 YouTube

Changes Coming for Canadian Cannabis + Trulieve Management Moves | Trade to Black

What we will cover:

✅ On our latest Trade To Black Podcast, hosts Shadd Dales and Anthony Varrell will welcome in Rubicon Organics’ CEO, Margaret Brodie, to discuss the company’s latest move in the cannabis sector. Rubicon Organics (OTCQX: ROMJF) has entered a purchase and sale agreement with Medipharm Labs Inc., acquiring a 47,500-square-foot indoor cultivation facility in Hope, British Columbia, valued at $4.5 million CAD. This facility, with an estimated $12 million replacement cost, marks a significant move for Rubicon Organics as they solidify their foothold in the Canadian cannabis market.

We’ll also discuss the Canadian cannabis market’s 2025 outlook. Topics include how the OSC favors companies focusing on premium products and domestic markets, and the challenges licensed producers face when re-entering the Canadian market after shifting attention internationally. Insights into the OCS scoring system, buyer dynamics, and evolving consumer data trends will shed light on market opportunities.

Plus, Seth Yakatan, a cannabis investor and advisor, joins to analyze cannabis earnings. Highlights include Green Thumb Industries (OTCQX: GTI)’s strong performance, Trulieve (OTCQX: TCNNF)’s positive results and management rumors, Curaleaf (OTCQX: CURLF) still losing money under Boris Jordan’s watch, and Glass House (OTC: GLASSF)’s record-low-rate bank deal.