💸 The Tape

Could North Carolina finally be ready to embrace medical marijuana? If recent comments from House Speaker Destin Hall (R) are any indication, the odds are looking better than ever. Hall, who took over as speaker this year, signaled that House Republicans might be more open to considering a medical marijuana bill in the current legislative session. Given the House’s historical reluctance—despite multiple Senate approvals—this could be a pivotal moment for the state’s cannabis policy.

The Long Road to Reform For years, Sen. Bill Rabon (R) has been the driving force behind medical marijuana legalization in North Carolina, pushing bills through the Senate only to see them stall in the House. His latest proposal, a highly conservative take on medical cannabis, has struggled to gain traction due to resistance within the GOP-controlled chamber. However, with Hall’s recent remarks, the political winds may finally be shifting.

Kevin Caldwell of the Marijuana Policy Project noted the significance of this shift, highlighting that “many new Republican House members have heard the call of their constituents” and could be willing to support a regulated medical marijuana program. And there’s certainly a strong voter mandate—recent polling shows a whopping 71% of North Carolina voters back medical marijuana, with support spanning across party lines.

Trump’s Influence on GOP Lawmakers One unexpected catalyst for this newfound openness? Donald Trump. The former president has previously voiced support for medical marijuana and even endorsed a Florida adult-use legalization measure. Caldwell believes this top-down influence is filtering through to state legislators, making them more willing to reconsider their stance. After all, if Trump says medical marijuana is acceptable, who in the GOP wants to be the one to argue otherwise?

Regulated Market vs. the Wild West The push for medical cannabis is coming at a crucial time. Lawmakers are also looking at regulating hemp-derived cannabinoids like delta-8 THC, which currently operate in a legal gray area. Senate President Pro Tempore Phil Berger (R) suggested that a comprehensive package addressing both medical marijuana and hemp regulation could have a path forward in the legislature. This approach could satisfy conservatives who want stricter oversight while allowing patients legal access to lab-tested cannabis products instead of turning to unregulated sources.

A Political Tipping Point? With new leadership in the House and a growing number of GOP lawmakers softening their opposition, North Carolina could finally be on the verge of medical marijuana legalization. Whether this momentum translates into actual policy change remains to be seen, but one thing is clear—the conversation is no longer a nonstarter. For the thousands of patients waiting for legal access to cannabis, that’s at least a step in the right direction.

📈 Dog Walkers.

Kentucky Hemp Is Under Pressure

What’s Going On Here: In classic legislative fashion, Kentucky lawmakers have advanced a “shell” bill, Senate Bill 202, that would ban the sale of hemp-derived beverages until mid-2026. Supporters claim this pause is necessary to craft proper regulations, but industry insiders see it as a devastating roadblock for small businesses.

The bill, backed by Sen. Julie Raque Adams (R-Louisville), aims to regulate hemp beverages like alcohol. However, critics argue it’s a de facto ban, stifling innovation in a booming industry. With the hemp market already a regulatory minefield, many question whether a two-year moratorium is reform—or simply prohibition with a fancy label.

Why Should You Care: This could have industry-wide implications for hemp beverages, as many of the country's canning lines are based in Kentucky. While regulating hemp similarly to alcohol makes a lot of sense, pausing sales for potentially the better part of a year might be counterintuitive.

California Is In Flux

Whats Going On: California’s cannabis industry is stuck in a paradox—regulators are touting growth, but the numbers tell a different story. Q4 2024 sales hit a dismal $1.027 billion, the lowest since early 2020 and down from $1.5 billion at the 2021 peak. Meanwhile, legal production jumped 12%, fueling claims of market expansion. The reality? Legal operators still control just 40% of sales, with the illicit market holding steady at 60%. Despite rosy projections, California’s cannabis sector remains trapped in a high-tax, overregulated struggle, while the underground economy continues to thrive—completely unfazed by the state’s optimism.

Why You Should Care: Well over a decade later California still can’t get out of its own way as it relates to legal market sales. Here’s to hoping they can get themselves figured out here in the coming years.

🗞️ The News

📺 YouTube

NewLake Capital & Jushi CEOs Share Cannabis Industry’s 2025 Roadmap

What we will cover:

✅ On Friday on our latest Trade to Black podcast, host Shadd Dales and co-host Anthony Varrell break down the latest earnings reports from key cannabis companies, including TerrAscend (TSX: TSND) & Ayr Wellness (OTC: AYRWF), and what their latest numbers mean for both company’s moving forward.

Next, Jushi Holdings Inc. (OTCQX: JUSHF) CEO Jim Cacioppo will join us. Jushi, a company with over 50% of its dispensary portfolio in Pennsylvania and Virginia, recently posted a strong financial turnaround. The company reduced its net loss from $65.1 million in 2023 to $48.8 million in 2024 while boosting adjusted EBITDA to $46.2 million. We’ll discuss how Jushi has navigated market challenges, expanded its retail footprint, and positioned itself for future growth.

Plus, we will welcome back NewLake Capital Partners (OTCQX: NLCP) CEO Anthony Coniglio. NewLake, a leading real estate capital provider in the cannabis space, has grown revenue to $50.1 million, increased its annual dividend by 8.3%, and maintained a disciplined investment strategy. How has NewLake avoided the “whack-a-mole” problems seen with competitors, and what’s their outlook for 2025?