💸 The Tape

Illinois’s cannabis market just celebrated its fifth birthday in style, ringing up more than $2 billion in total sales for 2024—a modest yet still impressive 2.5% bump over last year. That bounty includes a record $1.722 billion in adult-use sales, plus $285 million on the medical side. For the state’s coffers, it’s an even sweeter deal: dispensaries shelled out $490 million in taxes, demonstrating that getting high can indeed lift an entire state’s revenue outlook.

Governor JB Pritzker, Illinois’s most enthusiastic cannabis cheerleader, has hailed these numbers as proof of the state’s “equity-first” legalization model, designed to redress damage from the war on drugs. Still, Pritzker isn’t ready to light up a celebratory cigar just yet—he’s worried about the unregulated hemp market leaching away consumer confidence (and, presumably, those tidy tax receipts). After all, licensed dispensaries pay taxes, adhere to strict safety checks, and operate with government oversight, while rogue hemp operations face far fewer guardrails.

Lt. Governor Juliana Stratton echoed the sentiment, noting that tax revenue from sales goes right back into communities hit hardest by prohibition. So, it’s not just the dispensaries that are winning—there’s a broader social good at stake. In fact, more than 56 million cannabis items flew off shelves in 2024, a 13% leap from the previous year. Of those, nearly 49 million were adult-use products, with in-state residents snapping up around $1.34 billion worth, while out-of-staters chipped in a cool $385 million.

Currently, Illinois hosts 244 adult-use dispensaries, including 134 run by social equity licensees. Another 70 applicants from the 2022 social equity lotteries are working their way toward full licensure, along with 51 chosen under the newer Social Equity Criteria Lottery. Once licensed, each new dispensary can begin sales immediately.

In short, the Prairie State is proving that a carefully regulated cannabis industry can blossom into a fiscal powerhouse while aiming to level the playing field for businesses and communities. If the market holds course, expect Illinois to continue to show signs of strength.

📈 Dog Walkers

Medipharm Backs Out Of Selling Facility

MediPharm Labs abruptly ended its deal to sell Napanee Facility to Kensana Health, citing unmet contractual obligations. Upside? They get to keep Kensana’s non-refundable deposits—bonus change in the coffers. Meanwhile, day-to-day commercial operations stay steady, buoyed by growing demand for MediPharm’s GMP services. CEO David Pidduck highlights last year’s profitable international growth and reaffirms that Napanee remains central to the Company’s global expansion strategy. For now, it’s business as usual—minus one canceled transaction and a few extra dollars in hand.

Connecticut Official Has Enough

Connecticut’s Office of the Cannabis Ombudsman (OCO) has bowed out of the DEA’s marijuana rescheduling hearings, citing behind-the-scenes “shenanigans” that eroded trust in the process. OCO, along with My Doc App, had been among the few advocates for shifting cannabis from Schedule I to Schedule III; their departure arguably leaves an already lopsided hearing even more tilted toward opponents of reform. This follows allegations of improper coordination between DEA officials and anti-rescheduling witnesses, prompting the administrative law judge to grant an appeal and cancel scheduled hearings. For Connecticut Ombudsman Erin Kirk, withdrawing makes sense given limited resources and a process she deems compromised—underscoring a broader concern that patients deserve a more transparent and fair pathway for cannabis reform.

TLRY Beefs Up Supply Chain

Tilray Brands has amped up its Canadian cannabis supply chain, with Aphria One and Aphria Diamond now fully planted to meet surging domestic and global demand. The company reactivated previously idle sections of Aphria One, expecting to yield an extra 60 metric tonnes of cannabis yearly, bumping total capacity to 210 metric tonnes. Phase II kicks off in Cayuga this spring, with sales from Phase I harvests landing late in Q4 and Phase II harvests in October 2025. Backed by eight cultivation sites across Canada and Europe, Tilray stands poised for growth.

🗞️ The News

Claims of marijuana testing lab fraud hit New York’s $1 billion adult-use market

'Existential threat': Calif. pot industry prepares for 25% state tax increase

📺 YouTube

Aurora Headlines Biggest Developments of the Week in Cannabis I Trade To Black

What we covered:

✅ On the Trade to Black podcast, host Shadd Dales breaks down the biggest cannabis industry developments of the week. From major legislative moves to company earnings, there’s plenty to cover—so if you’re ready for a quick halftime break from the Super Bowl, we’ve got you covered.

We will begin with the Senate Banking Committee, which held a pivotal hearing on debanking, closely watched by the cannabis industry. While the focus was on federally legal industries like crypto and firearms, cannabis stole the spotlight when Senator Thom Tillis remarked, ‘We’ve got the cannabis business. It’s illegal federally, but we should re-examine that.’ This rare bipartisan acknowledgment highlights the industry’s push for financial reform through the SAFER Banking Act.

Meanwhile, Robert F. Kennedy Jr. is one step closer to becoming Secretary of Health and Human Services, a role that could shape future cannabis-related health policies.

On the corporate front, Aurora Cannabis reported a blockbuster Q3, with medical cannabis revenue surging 51% year-over-year to $68.1 million. International markets boomed, flipping Aurora from a $17 million loss to a $31 million net income. In contrast, Canopy Growth faced a 5% revenue drop, though cost-cutting efforts helped narrow losses.