💸 The Tape

Prepare to mark your calendars in pencil—again. The DEA’s much-anticipated January 21 hearing on the Biden administration’s marijuana rescheduling proposal is off the books, at least for now. Why? A group of pro-reform witnesses challenged the agency’s handling of participants (hint: accusations of cozying up to anti-cannabis witnesses), prompting Administrative Law Judge John Mulrooney to grant them a short-term legal “time-out.” Translation: the hearing is canceled, and we’re looking at a minimum three-month delay, just a another day in paradie? Am I right?

Mulrooney, who’s proven he’s not afraid to call out the DEA’s missteps, also provided color commentary on the alleged behind-the-scenes maneuvering—labeled “disturbing” and “embarrassing.” Still, he shot down the notion of banishing the DEA from its own proceeding. Turns out, even if the agency did engage in questionable communications, removing them isn’t within the ALJ’s authority. It’s a bit like catching a referee in questionable calls but lacking the rulebook to eject them from the game.

The real kicker is the looming political handoff: in just days, President-elect Donald Trump will arrive, presumably with a new DEA Administrator who may or may not share the current leadership’s sentiments on cannabis. Mulrooney warns that any “puzzling and grotesque lack of understanding” at high levels might keep the rulemaking in limbo—no small headache for industry stakeholders who’ve been hoping to see cannabis bumped to Schedule III. That move wouldn’t be full-blown legalization, but it’d open the door to critical tax deductions and additional research freedoms, potentially luring more institutional capital into the space.

Meanwhile, the DEA and pro-rescheduling groups have taken to filing motions and counter-motions as if they were trades on a volatile market day. One example: the agency tried to digitally dump tens of thousands of public comments into the record, which Mulrooney branded “unprecedented and astonishing.” He’s reserved the option of sanctions when the DEA inevitably tries to reintroduce that evidence.

For now, everyone’s on hold. The judge says the parties can check in every 90 days on the status of this legal wrangling—like a quarterly earnings call for a stock that refuses to budge. If the appellate court sides with the pro-rescheduling camp, the hearing could get a new date. If not, well, we may see this regulatory miniseries drag on even longer. Either way, the cannabis sector will be watching closely, hoping this roller coaster might eventually end with an upgrade to Schedule III—and maybe fewer headaches for everyone involved.

📈 Dog Walkers

High Tide Enters The EU

High Tide is adding a German twist to its growth story, snagging a sizable 51% interest in Purecan GmbH for €4.8 million. The strategy? Tap Germany’s booming medical cannabis scene, already brimming with Canadian exports and forecast to top €1 billion by 2028. Purecan, a profitable pharmaceutical wholesaler, has import licenses in hand and a telemedicine platform in the works—two valuable ingredients for success. High Tide’s move positions it squarely in a market that soared 30% last year alone, demonstrating serious momentum. Think of it as a bold second act in High Tide’s global cannabis adventure, complete with Teutonic flair.

Jones Soda Enters Mizzou

Jones Soda Co. (JSDA) is fizzing up big moves, expanding its Mary Jones cannabis line into Missouri, the nation’s fifth-largest cannabis hub. In partnership with CLOVR, Jones Soda will roll out THC-infused sodas starting January 14, 2025, with 100mg in 16 oz cans—and more playful doses and flavors on tap. The brand’s California success—winning Best Cannabis Soda in 2023—lights the path for a bright debut in Missouri, which recently outpaced Colorado in adult-use sales. With nearly 20,000 local cannabis jobs and revenue nearing $238 million, Missouri sets the stage for Jones Soda’s bubbly new frontier. Expect Mary Jones to stir excitement.

🗞️ The News

High Tide to Enter German Medical Cannabis Market Through Acquisition of Purecan GmbH

How will consumer preferences shape cannabis retail in 2025?

Despite strict laws, Texas is awash in intoxicating cannabis

📺 YouTube

Tilray and High Tide CEOs Reveal Latest Cannabis News | Trade to Black

What we covered:

✅ On our latest Trade To Black podcast, we have an action packed show featuring two of the biggest CEO names in the cannabis industry: Raj Grover from High Tide (NASDAQ: HITI) and Irwin Simon from Tilray (NASDAQ: TLRY), along with top cannabis attorney Shane Pennington, Partner at Porter Wright Morris & Arthur LLC.