💸 The Tape

LEEF Brands, Inc. (CSE: LEEF) (OTCQB: LEEEF) delivered a tale of two halves in 2025, finishing the year with clear momentum and a strengthened foundation for profitability.

The company reported full-year revenue of $34.8 million, up 22.1% from 2024. Fourth-quarter revenue reached $8.3 million, a 38.9% increase year-over-year. Gross profit rose to $10.5 million for the year (up 36.5%), with gross margin improving to 30.1% overall. The second half showed particular strength: H2 gross margin expanded dramatically to 41.4% (up 21.7 percentage points from H1), and adjusted EBITDA turned positive at $1.7 million compared with a $2.2 million loss in the first half.

CEO Micah Anderson described 2025 as a pivotal transition year: “The first half reflected a legacy cost structure, while the second half demonstrates the impact of Salisbury Canyon Ranch on our business. The second half exit rate reflects a fundamentally stronger company, with higher margins, improved cash flow, and a more efficient operating model.”

The Salisbury Canyon Ranch cultivation asset was the clear catalyst. LEEF cultivated nearly 2 million plants there in 2025, producing clean, consistent biomass for its extraction platform at an internal cost of approximately $8 per pound — dramatically lower than the $20–$50 per pound paid for external supply. This vertical integration drove the sharp margin improvement in the second half and is expected to be a major contributor to profitability going forward.

Free cash flow also improved markedly. The company generated $1.2 million in positive free cash flow in Q4 (versus a $1.6 million outflow in Q4 2024) and $1.3 million in H2 (versus a $2.4 million outflow in H1). For the full year, free cash flow was negative $1.1 million, a significant improvement from the $7.3 million outflow in 2024.

CFO Kevin Wilson highlighted the progress: “We exited the year with approximately 45.5% gross margins and over $1 million in free cash flow, demonstrating that the business is now cash flow positive and self-funding at the operating level.”

On March 12, 2026, LEEF announced a US$4.5 million initial closing of an up to US$8 million financing led by Mindset Capital and founder Aaron Edelheit. Proceeds will accelerate the expansion of Salisbury Canyon Ranch to its full 180-acre permitted size, expected to be completed in fall 2026. The project is viewed as the highest-return capital investment in the company’s portfolio.

Anderson noted: “Completing Salisbury Canyon Ranch is the highest-return capital project in our business. This investment enables us to bring more of our supply chain in-house, further improve margins, and drive long-term value creation.”

The company also appointed Jamie Mendola to its Board of Directors, bringing deep cannabis experience from AYR Wellness and other ventures.

For 2026, LEEF expects continued strong performance supported by Salisbury Canyon Ranch material. While Q2 may see temporary margin pressure during the harvest transition, the second half is projected to show meaningful improvement as additional cultivation comes online. The company anticipates reduced seasonality over time as internal supply stabilizes.

With a clearer path to consistent margins, positive cash flow, and a major cultivation expansion underway, LEEF enters 2026 with renewed confidence. The business that struggled with legacy costs in early 2025 has evolved into a vertically integrated operator with a structural cost advantage and a defined growth plan centered on its flagship California asset.

In a consolidating industry where supply chain control and margin discipline are increasingly critical, LEEF’s 2025 results and 2026 outlook suggest the company is moving from turnaround mode to growth mode.

📈 Dog Walkers

$JUSHF ( ▲ 2.83% ) FAFO

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) has scored an early victory in its aggressive campaign to protect regulated cannabis markets from what it calls unfair competition from unregulated intoxicating hemp-derived THC products.

The vertically integrated multi-state operator announced today that its subsidiaries have reached a settlement and mutual release with Revelry Supply, Inc., effectively resolving claims in litigation pending in the Court of Common Pleas of Philadelphia County. The case, part of a broader enforcement action, targeted the sale and distribution of certain unregulated hemp-derived THC products in Pennsylvania.

Trent Woloveck, Chief Strategy Director of Jushi, explained the motivation behind the legal effort: “We initiated this litigation to help protect the integrity of state regulated cannabis markets and, most importantly, to support public health and safety by addressing the proliferation of under-regulated intoxicating products being sold across the US. We believe consumers deserve transparency, product testing, and regulatory accountability.”

The company has publicly stated that certain unlicensed wholesalers and smoke shops are selling illegal marijuana products disguised as “hemp,” creating an uneven playing field, shifting compliance burdens onto licensed operators, and potentially endangering public health.

This settlement with Revelry marks the first resolution in the wider action. Jushi says it will continue pursuing claims against remaining defendants in Pennsylvania and other states where similar issues exist.

The move reflects a growing frustration among licensed operators nationwide with the unregulated hemp-derived THC market, which has exploded since the 2018 Farm Bill created a legal gray area for products containing less than 0.3% delta-9 THC on a dry-weight basis. Many states, including Pennsylvania, are now grappling with how to address high-potency hemp-derived products that mimic traditional cannabis effects without facing the same regulatory oversight.

For Jushi, the settlement is both a legal win and a public statement. By taking action, the company is positioning itself as a defender of the regulated market and consumer safety. The broader litigation could set important precedents as states continue to tighten rules around intoxicating hemp products while licensed cannabis operators push for a level playing field.

In an industry still maturing under patchwork regulations, Jushi’s proactive stance may encourage other licensed operators to challenge what they see as unfair competition from the unregulated sector.

$AVCNF Exports Down Under

Avicanna Completes Landmark First Commercial Export of CBG-Dominant Cannabis Flower to Australia

Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) has taken a significant step in its international expansion strategy with the announcement that its majority-owned subsidiary, Santa Marta Golden Hemp SAS (SMGH), has completed its first commercial export of CBG-dominant cannabis flower to Australia.

This shipment marks an important milestone for Avicanna’s global supply chain ambitions. Over the past two years, the company has invested heavily in process development, infrastructure, and quality systems at SMGH to align its operations with international regulatory expectations for active pharmaceutical ingredients (API) and raw materials. The result is a facility capable of producing consistent, standardized cannabis flower at commercial scale, with a strong emphasis on cannabinoid-specific chemotypes, traceability, and compliance with Good Agricultural and Collection Practices (GACP) and organic certification standards.

SMGH’s operational advantages include year-round cultivation enabled by Colombia’s equatorial climate, controlled environmental parameters, and a robust library of registered genetics. These factors support predictable production cycles, batch uniformity, and cost efficiencies — all critical for long-term success in regulated international medical cannabis markets.

The exported material includes SMGH’s proprietary CBG cultivar, part of Avicanna’s growing portfolio of registered varieties. With this shipment, SMGH has now supplied products into 21 international markets, while Avicanna-branded products have reached 24 markets globally.

Rajnish Ohri, President of International at Avicanna (noted in related commentary), emphasized the strategic importance of Australia as a high-priority market within the company’s global growth plan. The Aureus™ brand — Avicanna’s line of raw materials and API, including CBD, CBG, and THC produced through SMGH — continues to serve as a reliable input for the company’s consumer retail, medical cannabis, and pharmaceutical pipeline.

SMGH’s 300,000 square feet of cultivation space and 300 kg extraction capacity currently yield approximately 26,400 kg annually. The facility holds both GACP and USDA Organic certifications, strengthening its credentials for pharmaceutical-grade supply.

This export underscores Avicanna’s evolution from a Canadian-focused biopharmaceutical player into a vertically integrated global supplier. By controlling cultivation, genetics, and quality systems in Colombia, the company is reducing reliance on third-party sourcing and positioning itself to meet rising demand for standardized, high-quality cannabinoid raw materials in regulated markets.

As Australia’s medical cannabis sector continues to mature with increasing approvals and broader prescriber adoption, Avicanna’s CBG-dominant flower offers healthcare professionals and patients another differentiated, clinically supported option.

With this successful first shipment, Avicanna has demonstrated both technical capability and regulatory navigation skills required for sustained international growth. The company remains focused on expanding its footprint in priority markets while maintaining strict compliance and quality standards across its operations.

🗞️ The News

📺 YouTube

Top Cannabis Physician Explains CBD Pilot | TTB Presented by Flowhub

What we will cover:

✅ In this episode of Trade To Black, presented by Flowhub, hosts Shadd Dales and Anthony Varrell break down the new Medicare CBD pilot program — and why it could end up being one of the more important federal developments we’ve seen in years.

For the first time, the U.S. government is testing a structured model where Medicare patients can receive a $500 annual benefit card to purchase qualifying hemp-derived CBD products. This is tied directly to the 2027 Medicare rule — so this isn’t theoretical, it’s a real pilot that’s been put in motion.

To help make sense of it, Dr. Leigh Vinocur joins the show — one of the leading cannabis physicians in the country and a member of the National Cannabis Care Council (NCCC). This isn’t just a surface-level conversation — we get into how this actually works for patients, what kind of physician oversight is involved, and what CMS is ultimately trying to measure through this program.