💸 The Tape

Just months after Ohio voters approved adult-use cannabis legalization through Issue 2, a new House bill is drawing fierce opposition for attempting to gut key provisions of the measure. HB 160, introduced by Rep. Brian Stewart (R), would implement sweeping restrictions on the state’s new marijuana program—including new criminal penalties, elimination of social equity licensing, and tighter control over product potency and availability.

At a House Judiciary Committee hearing this week, advocacy groups, business owners, and community leaders lined up to testify against the proposal, warning it undermines the will of voters and reintroduces elements of prohibition. Gary Daniels, chief lobbyist for ACLU of Ohio, said HB 160 “fundamentally handicaps the purchase, use, transportation and sale of cannabis,” and described the bill as “a betrayal of public trust.”

Among its provisions, HB 160 would cap THC potency at 70%, prohibit the introduction of new product formats, and outlaw cannabis not purchased from a licensed dispensary or grown personally at home. It would also ban adults from sharing marijuana—even in private settings—without risking criminal penalties. Advocates warn this could make consumers vulnerable to enforcement if they cannot produce receipts or packaging to prove a product’s legal origin.

The bill also eliminates equity-centered licenses for small businesses and social equity applicants, redirecting the proposed revenue from community reinvestment and criminal justice reform programs into the state’s general fund. “HB 160 shuts out exactly the Ohioans who most deserve a chance to benefit from legalization,” said Cat Packer of the Drug Policy Alliance.

Karen O’Keefe of the Marijuana Policy Project noted the bill “has so many exceptions that they swallow the rule,” including rolling back provisions that allowed gifting and personal use.

Some provisions, such as an expungement program for low-level marijuana convictions and a ban on retailer-provided product samples, were seen as marginally positive by advocates—but viewed as largely symbolic in the context of the broader rollbacks.

Despite voter support for legalization, Republican lawmakers continue to advance multiple competing proposals, including a more restrictive Senate bill (SB 56) and Governor Mike DeWine’s push to redirect cannabis revenue to law enforcement and jail funding.

While the future of HB 160 remains uncertain, the hearing made clear that many Ohioans see it as a dramatic overreach. As Daniels put it: “At worst, these changes are purposeful—designed to kneecap Issue 2.”

📈 Dog Walkers.

Trulieve Posts Stable Quarter

What’s Going On Here: Trulieve Cannabis Corp. (CSE: TRUL | OTCQX: TCNNF) reported Q1 2025 results showing stable topline revenue and improving profitability:

Q1 2025 Highlights

• Revenue: $298M (flat YoY), with 95% from retail.

• Gross Margin: Improved to 62%, up from 58% YoY.

• Net Loss: GAAP net loss of $33M; adjusted net loss of $3M after excluding non-recurring charges.

• Adjusted EBITDA: $109M, or 37% of revenue, up 3% YoY.

• Cash Flow: $51M from operations; $34M free cash flow.

• Cash Position: $329M at quarter-end.

Operational Updates

• 625K+ rewards members, accounting for 68% of transactions.

• Launched Onward, a THC-infused, non-alcoholic beverage now available in FL and shipped to 36 states.

• Added 6 new stores and relocated 1; total dispensaries now at 229.

• Cultivation and processing footprint exceeds 4 million sq ft.

Recent Momentum

• Strong 4/20 performance: +20% units sold, +9% store traffic YoY.

• Opened new St. Petersburg, FL dispensary.

Bottom line: It was a flat quarter year-over-year for the Sunshine State’s top dog. The real story here? Margins—and they’re shining brighter than a Florida afternoon. Gross margin came in at a sizzling 62%, with a 37% adjusted EBITDA margin that may just top the industry. While top-line growth would be a welcome breeze to push that $1.2B annual run rate higher, it looks like we’ll have to stay patient on that front.

GTI Misses

What’s Going On Here: Q1 2025 Financial Highlights

• Revenue: $280M
  ↳ Up 1% YoY, showing stable top-line performance despite market headwinds

• Adjusted EBITDA: $85M
  ↳ 31% EBITDA margin, maintaining strong operational leverage

• GAAP Net Income: $8M, or $0.04/share

• Cash Flow from Operations: $74M

• Cash Balance: $211M
  ↳ Reflects a conservative approach and readiness for strategic growth

Operational Highlights

• Two new RISE stores opened:

  • Nevada

  • Whitehall, Ohio (Columbus metro area)

• Adult-use launch prep underway for Minnesota

• Brand expansion:

  • RYTHM introduced Bud Ball NYC – part of a 3-city lifestyle brand tour

  • Beboe and incredibles also gaining traction

Executive Commentary

CEO Ben Kovler emphasized GTI’s brand-driven approach, highlighting RYTHM's cultural momentum in music and events, while President Anthony Georgiadis pointed to a healthy start in 2025, with cautious optimism amid pricing and competitive pressures.

Bottom line: Sh*t happens, GTI missed expectations for the Q.

🗞️ The News

📺 YouTube

Trulieve Leads Off Cannabis Earnings Week With Strong Margin

What we will cover:

✅ Host Shadd Dales and Anthony Varrell unpack a pivotal week for cannabis investors as earnings season kicks off.

First up—Trulieve (OTCQX: TCNNF), which reported stable Q1 revenue at $298 million, beating analyst expectations. Margins climbed to 62%, with $109 million in adjusted EBITDA and a healthy $329 million in cash at quarter-end. Despite a net loss of $33 million, the company showed resilience through strong operational cash flow and a robust 4/20 retail performance. Trulieve also expanded with six new dispensaries and debuted its new THC beverage, Onward.

TerrAscend Corp. (TSX: TSND) also made headlines, acquiring Union Chill Cannabis Co. in New Jersey—expected to be immediately accretive to both EBITDA and cash flow. Executive Chairman Jason Wild sees an opportunity to boost performance by leveraging premium in-house brands. TerrAscend further expanded in Ohio, now operating 39 dispensaries across six U.S. states and Canada.