💸 The Tape

Minnesota just passed the most comprehensive overhaul of its cannabis regulatory framework since legalization — and the implications extend far beyond the state's borders.

On May 26, 2026, Governor Tim Walz signed the 2026 Omnibus Cannabis Bill into law, a sweeping 105-page piece of legislation that merges the state's medical and adult-use supply chains, creates a new macrobusiness license category, builds a bridge for hemp operators facing a looming federal ban, and authorizes large-format THC beverage containers for the first time. The bill passed the House 92-42 and the Senate 34-33, and was sponsored by Rep. Jessica Hanson (DFL-Burnsville), who described it as "a collaborative effort" involving more than 80 stakeholders and weekly meetings over three months.

For a state that only launched its first licensed dispensary in September 2025, Minnesota is moving with a speed and sophistication that other legal states would be wise to study.

Merging the Supply Chains

Perhaps the most consequential provision in the bill is the merger of Minnesota's bifurcated medical and adult-use cannabis supply chains. Under the prior framework, businesses operating in both markets were required to maintain separate cultivation, manufacturing, and inventory tracking systems — an operationally burdensome and financially inefficient structure that limited product availability for medical patients and created unnecessary duplication across the system.

The new law eliminates that separation. Going forward, the only distinction between medical and adult-use cannabis will occur at the point of sale, where medical patients will continue to receive applicable exemptions and protections. Behind the scenes, the same flower, the same concentrates, and the same edibles can flow through a single supply chain — dramatically reducing costs and improving product access across both markets.

For patients who have reported limited product availability under the previous system, this change should produce noticeable improvements in both selection and consistency.

The Macrobusiness License

The bill introduces a new macrobusiness license — a vertically integrated permit that allows a single entity to cultivate, process, and retail cannabis under one license. But Minnesota drew a deliberate line: cultivation under the macrobusiness license is capped at 38,000 square feet, a limit designed to prevent the kind of corporate consolidation that has defined — and in many cases distorted — cannabis markets in other states.

It's a balancing act. The macrobusiness license provides operational efficiency and reduced licensing complexity for larger operators, while the cultivation cap preserves competitive space for smaller cultivators and social equity licensees. Whether 38,000 square feet proves to be the right number is debatable, but the intent — scaling the market without surrendering it to a handful of dominant players — is clear.

The Hemp Bridge

One of the most forward-thinking provisions in the bill addresses the federal hemp ban set to take effect in late 2026. Under new federal definitions passed by Congress, hemp-derived THC products will be capped at 0.4 milligrams per container — a threshold that would effectively eliminate Minnesota's estimated $180–$210 million lower-potency hemp edible (LPHE) market overnight.

The omnibus bill creates what lawmakers are calling a "bridge" for hemp businesses: it allows any person, cooperative, or business holding a hemp business license to also hold a cannabis license, providing a pathway for hemp operators to transition into the regulated cannabis market rather than simply going out of business when the federal ban hits.

Rep. Hanson was explicit about the urgency: "That's really important given the federal government's choice to kill a $67 billion national hemp industry, and so this is going to make sure the cannabis industry says they are welcome here."

It's a pragmatic response to a federal policy that threatens to destroy thousands of businesses that built legal enterprises under the 2018 Farm Bill's original framework. Rather than letting those operators — many of them small businesses with years of product development and consumer relationships — simply disappear, Minnesota is offering them a regulated home.

Large-Format THC Beverages

For consumers, one of the most visible changes will arrive on August 1, when hemp retailers will be authorized to sell large-format THC beverages in child-resistant, resealable bottles containing at least 750 milliliters and 17 or more servings. Think of it as the THC equivalent of a wine bottle — a format that acknowledges how consumers actually want to purchase and consume cannabinoid beverages in social settings.

The provision reflects the explosive growth of the THC beverage category in Minnesota, which has been one of the most active hemp-derived drink markets in the country since low-potency THC edibles were legalized in 2022. Brands like RYTHM, Señorita, Wynk, and dozens of local producers have built significant consumer followings — and Target recently expanded THC beverage sales to all 72 of its Minnesota stores before rolling out to over 300 locations in other states.

Starting January 1, 2027, the bill also legalizes "ratio hemp-infused cannabis products" containing up to 10 mg THC per serving (200 mg per package for edibles) combined with up to 100 mg per serving of approved non-intoxicating cannabinoids like CBD, CBG, CBN, or CBC. That opens the door to combination products that have been available in some medical markets but restricted from the adult-use and hemp channels.

Regulatory Cleanup

Beyond the headline provisions, the bill includes several structural improvements to Minnesota's regulatory framework. It gives the Office of Cannabis Management authority to inspect unlicensed facilities where lower-potency hemp edibles are manufactured or sold, and to assess civil penalties against non-compliant operations. It requires local governments with retail registration authority to process applications within defined timelines. And it streamlines reporting requirements between the OCM and the legislature.

Rep. Nolan West (R-Blaine) — one of the bill's Republican supporters — praised the legislation, saying regulations "have been absolutely brutal" for businesses and that the bill would improve numerous areas of the regulatory framework. Bipartisan support for cannabis cleanup legislation, while not universal, suggests that even legislators who may have opposed legalization initially recognize the practical need to make the existing market function better.

The Bigger Picture

Minnesota's omnibus bill is significant not just for what it does within the state, but for the model it offers nationally. At a time when the federal hemp ban threatens to decimate an entire product category, Minnesota is building an on-ramp rather than a dead end. At a time when other states struggle with bifurcated supply chains and licensing complexity, Minnesota is simplifying. And at a time when corporate consolidation concerns dominate cannabis policy debates, Minnesota is capping cultivation scale while still allowing operational efficiency.

The startup phase of Minnesota cannabis is over. What comes next — a streamlined, professional, consumer-focused market that treats hemp operators as allies rather than competitors — could become the template other states follow.

Governor Walz signed the bill. Now the real work begins.

📈 Dog Walkers

$JUSHF ( ▲ 7.59% ) Registers With DEA

Jushi Holdings is joining the growing line of MSOs filing their federal paperwork — and for a company with 60% of its revenue coming from medical cannabis, the timing couldn't be more strategic.

The vertically integrated multi-state operator announced it has submitted applications to the DEA seeking registration for certain state-licensed medical marijuana operations under the Schedule III framework established by last month's rescheduling order. The filing positions Jushi within the 60-day expedited window, during which the DEA has committed to processing applications on a streamlined basis unless otherwise notified.

CEO Jim Cacioppo called the filing "an important milestone for Jushi and the medical patients we serve," emphasizing the company's focus on operating at "the highest regulatory standards" as the federal framework evolves.

For Jushi specifically, DEA registration carries outsized significance. The company disclosed in its Q1 2026 earnings that medical sales represented approximately 60% of total revenue in 2025 — meaning a clear majority of the business immediately qualifies for the 280E tax relief that comes with Schedule III classification. The elimination of that punitive tax burden on medical operations should produce a measurable improvement in after-tax profitability and cash flow — dollars that can be redirected toward the company's recently refinanced $160 million term loan, facility investments, or continued expansion in markets like Virginia and Ohio.

The registration pathway allows operators to rely on existing state medical licenses as part of the qualification process — a practical design that avoids creating a duplicative federal licensing layer. For companies like Jushi that have spent years building compliance infrastructure across multiple states, the federal process leverages work that's already been done.

Cacioppo added that the company looks forward to "supporting continued progress in research, patient access, and responsible oversight" as the regulatory landscape develops.

$TLRY ( ▲ 1.8% ) Giving Consumers Summer Vibes

Broken Coast is dropping new genetics just in time for summer — and the details matter as much as the strain.

Tilray Brands announced the launch of Cherry Ztripez, a new premium indica-dominant strain under its craft cannabis brand, derived from a Lemon Cherry x Z Animal cross. The release expands Broken Coast's curated portfolio with a cultivar designed around the brand's signature process: small-batch cultivation in strain-specific, laboratory-grade rooms, followed by hang-drying, cold-curing, careful milling, and hand-packaging.

It's the kind of methodical, detail-driven approach that separates craft cannabis from commodity flower — and that Broken Coast has built its reputation on in the Canadian premium segment.

Blair MacNeil, President of Tilray Canada, framed the launch as a continuation of the brand's quality-first positioning: "Cherry Ztripez builds on that foundation with a new strain that reflects the quality, consistency, and care consumers expect from the brand." He added that the release allows Tilray to "further meet demand for premium, thoughtfully produced cannabis while continuing to strengthen Broken Coast's position within the category."

Cherry Ztripez will be available through licensed Canadian retailers in 7g whole flower, with a 1g blunt format launching at the end of May and additional pre-roll formats expected later this summer. The phased rollout gives the brand sustained shelf presence through the peak consumption season.

The launch also coincides with Broken Coast's recently refreshed packaging, which introduces refined glass jars, improved product visibility across larger formats, and a new feature called Grower's Notes — providing consumers with information on each strain's lineage, cultivation approach, and defining characteristics. It's a transparency play that adds storytelling to the shelf experience.

For Broken Coast, Cherry Ztripez isn't just a new SKU — it's a seasonal statement from a brand that takes craft seriously.

🗞️ The News

📺 Trade To Black

Rescheduling Lawsuit, Curaleaf Feedback & MSO Merger Talk | TTB Presented by Flowhub

• New Legal Challenge: Attorneys General from Indiana, Nebraska, and Louisiana filed a lawsuit against the Trump administration's rescheduling order, calling it "arbitrary and capricious" — now consolidated with SAM and NDASA's previously filed suit.

• Legal Momentum Check: The key question is whether these challenges can actually slow reform or get dismissed like recent anti-cannabis lawsuits, with the June 29 DEA hearings on broader rescheduling fast approaching.

• MSO Consolidation: Seth Yakatan returns to discuss why large-scale mergers between top-tier MSOs are becoming increasingly likely as the industry prepares for Schedule III economics and potential uplisting to major exchanges.

• Capital Markets Shift: The convergence of rescheduling, 280E relief, and exchange listing preparation is creating conditions for a fundamentally different competitive landscape — one that favors scaled, well-capitalized operators.